Bangladesh: Scrap import offers drop, market waits for fresh bulk bookings

The imported scrap market in Bangladesh is yet to witness a new round of bulk bookings despite the continued downtrend in offers. Containerised imported scrap prices into Bangladesh have fallen to a 14-month low. However, mills are holding back bookings.

Meanwhile, the domestic steel market saw gloomy sentiments prevailing owing to heavy rainfall in many parts of the country.

Bulk offers from USA drop $70/t w-o-w

Bulk offers for US scrap have edged down further but buyers remained inactive due to sufficient inventories. Major mills are likely to have already secured sufficient bulk cargoes for July shipments. Fresh offers for bulk HMS from the EU and USA are now at $400/t CFR Chittagong, while bids are at $380/t CFR levels. However, no firm deals were heard concluded.

Fresh offers, deals in the container segment

• Fresh UK-origin containerised shredded scrap is being quoted at $465-470/t CFR, down over $50/t w-o-w. Source believes that prices are still on the higher side.
• HMS offers from the UK are now at $420-425/t CFR, down by over $80/t w-o-w. No major deals have been heard.

Heavy rain impacts domestic steel prices: Heavy rainfall in many parts of the country has impacted domestic trade activities. Many mills are likely to cut production in the near term, SteelMint understands. Increasing production costs due to higher electricity tariff, raw material prices and depreciating currency pushed steel mills to slash production.

Domestic rebar prices remained mostly unchanged w-o-w due to limited demand from end-users. As per SteelMint’s assessment, the major mills’ rebar (10-16mm) price assessment stood at BDT 84,000/t ($903/t) exw-Chittagong, including taxes.

Secondary mills in the Dhaka region are quoting rebar at BDT 76,000-78,000/t ($828/t).

As the financial year-end approaches, pressure is mounting on steel mills to pay their pending dues to banks. Additionally, the upcoming Eid al-Adha holidays on the first week of July are likely to keep market activities slow.

Furthermore, the Bangladeshi taka has hit a new record low, depreciating to 93.16 on the currency exchange platform recently.