Bangladesh mills lower bids for imported scrap on dull finished steel demand

Bangladesh’s imported scrap trades have slowed down this week due to low bids amid dull finished steel demand. Buyers remained cautious for booking new bulk cargoes, whereas suppliers are resisting sharp decline in offers.

“USA origin shredded in bulk is being offered at $320/t while, buyers are bidding at $310/t CFR Chittagong” highlighted a scrap trader.

Recent trades and offers –

• Around 1,000 t of European shredded has been booked in containers at $322/t CFR Chittagong basis.
• Suppliers offers stand at around $320-322/t CFR Chittagong level for containerised UK/Europe origin shredded.
• In another deal concluded, Australian origin HMS 1&2 (80:20) has been booked at $300/t CFR.
• Offers for HMS mostly suppliers asking $305-310/t CFR, while buyers price idea stands at $300/t CFR level.

SteelMint’s assessment of containerized shredded 211 scrap from UK/Europe origins stands at $320/t CFR Chittagong, stable w-o-w.

The country’s steelmakers might have an ample amount of scrap inventory with their steel mills due to low finished steel demand in the domestic market on the slow recovery in the government’s construction activities, SteelMint learnt. “Supplier and buyers don’t seem very aggressive in selling and buying” shared a trader based in Bangladesh.

Bulk scrap imports rebounded in Sept’20 – Bangladesh’s bulk ferrous scrap imports rebounded in Sep’20, as it imported 151,624 t as compared to just 25,525 t in Aug’20, as per vessel line up data maintained with SteelMint. The USA has exported three bulk cargoes, carrying 95,101 t of scrap in Sep’20 as compared to nil volume reported a month ago.

Domestic steel market overview– Domestic finished steel prices remained largely stable against last week, however trades have slowed down due to weak demand.

• Local scrap yard prices currently stand at BDT 30,500-31,000/t ex yard basis.
• Rebar offers from a major mill in Bangladesh stands at BDT 56,500/t.

Market participants are of the mixed opinion regarding future trends and are waiting for firm deals for a clearer market direction.