Bangladesh Mills Continue to Book Bulk Scrap Cargoes, Two Deals Reported

Bangladesh likely to witness highest ever monthly bulk scrap bookings in Mar’20, may breach 300,000 MT

Major mills in Bangladesh continue to book Bulk scrap at successively decreasing prices, as ongoing container shortage since the last month has made Bulk imports even more viable for the larger Steelmakers in Chittagong. This week 2 other Bulk scrap bookings were confirmed, after 5 bulk major bookings in the previous 2 weeks.

In the latest deal conclusion, a major EAF steelmaker in Chittagong booked a 32,000 MT bulk cargo from a US West Coast based supplier, comprising entirely of Shredded scrap at USD 275/MT CFR Chittagong. The shipment for the cargo is expected for May’20

Earlier this week, another top mill in Chittagong procured a mixed grade cargo from the Australian division of a Global recycler, comprising of HMS at USD 275/MT and Shredded at USD 280/MT CFR. Since beginning of Mar’20, the price for Bulk scrap to Bangladesh have fallen by USD 20-25/MT in 3 weeks.

In total Bangladesh mills have booked 7 Bulk vessels in total from USA & Australia in just the last 3 weeks comprising of around 220,000-230,000 MT of material, in addition to which several smaller cargoes from Japan totaling around 60,000 MT have been booked in this period, with Mar’20 likely to witness the largest ever monthly bulk booking to Bangladesh, surpassing 300,000 MT in total.

 Container offers to Bangladesh have plunged in recent days on the recent fall at global levels, with containerized Shredded from Europe & North America now being offered at around USD 285-288/MT CFR with further fall expected in the coming days, while buyer’s idea for HMS (80:20) is now down to USD 265/MT.