Shredded scrap offers in Bangladesh are found USD 5-10/MT cheaper than India.
Increasing steel making capacity in the country is attracting many global scrap suppliers. It is reported that crude steel capacity is likely to increase to 3 MnT in 2015, which was below 1 MnT in 2014.
Recent offers to Bangladesh for HMS 1&2 are heard to be around USD 230/MT and shredded at USD 240-245/MT. The offers were majorly heard from Australia and Japan.
It is noticed that scrap suppliers of Australia and Japan have become active in exploring new markets for scrap supply after Chinese billet captured their major markets, namely Korea, Thailand, Taiwan. There is a clear shift in interest found in South East Asian market from scrap to billet after China offered billet at competitive rates.
However, scrap offers from European nation are still heard at a higher rate of USD 260/MT, CFR Bangladesh and USD 245-250/MT CFR India for shredded.
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