In recent conversations with market participants SteelMint learned that, scrap importers continue to remain silent in Bangladesh owing to weak domestic finish steel demand and ongoing monsoon. Few limited quantity trades are being reported in the markets. While most of the industry participants expect that buyers will resume scrap imports actively in a couple of upcoming weeks.
Offers for containerized Shredded 211 scrap are being reported in the range of USD 395-405/MT, CFR Chittagong. However, very limited buying interest was seen at these levels from Bangladesh buyers. Price expectations majorly stood at around USD 390/MT levels for Shredded. Thus, SteelMint’s price assessment has remained almost flat on W-o-W basis.
“Although offers are floating for Shredded even at USD 405/MT levels in the market, no buyer seems really interested due to the impact of ongoing monsoon and the downward trend in domestic market” shared a source.
Price assessment for P&S scrap stood at around USD 395/MT, CFR from Australia and Brazil while offers from Australia origin HMS 1 assessed at around USD 370-375/MT, CFR Chittagong. HMS 1 from UAE sold at USD 384-385/MT, CFR and HMS 1&2 (80:20) from West Africa and Europe sold in small quantities at around USD 360-365/MT, CFR.
Local steel prices decline further on low demand – Local scrap prices in Bangladesh reported at around BDT 36,000-36,500/MT (USD 426-432), ex-works down by BDT 500-800/MT (USD 6-9) as against the last report.
Domestic ship cutting plate scrap prices have moved down by BDT 800-1000/MT (USD 9-12) on W-o-W basis. Prices assessed in the range of BDT 41,000-41,700/MT (USD 485-493) (for sizes 12mm, 16 mm and 20mm). While ship cutting plates larger than 20mm size assessed at around BDT 42,000-42,500/MT (USD 497-503) including 15% local taxes.
Markets for local rebar and billets are almost flat with limited activities observed. Local steel prices have declined by similar margins in the market. Large producers are offering premium rebar at around BDT 62,000/MT (USD 734) while medium-scale rebar producers are offering rebar at BDT 59,000-60,000/MT (USD 700-710), ex-work including 15% local taxes which have come down by upto BDT 1000-1500/MT in last two weeks’ time in Bangladesh.
Ship breaking prices stable on W-o-W – Since past few weeks, Bangladesh has remained the preferable ship breaking market for large VLCC sellers in the global markets. Many of the buyers have adjusted their price levels for mid-sized vessels in order to maintain their bank balances. Ship cutting market witnessed steady sentiments with prices remained stable on W-o-W basis. Prices assessed at USD 425/LDT for general dry bulk cargo, at USD 435/LDT for tanker cargo and at USD 450/LDT for containers on CNF Bangladesh basis. According to sources, 2-3 VLCC sales have reported this week, however, confirmation from buyers’ end has not received yet.
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