As per recent conversations with market participants SteelMint learned that, Bangladesh imported scrap market remained sluggish this week amid still high offers for imported scrap. Few importers were looking for materials but very few number of offers were available in the market and buying interest stood slightly below the current assessed levels.
Offers for imported Shredded 211 scrap in containers assessed around USD 375-380/MT, CFR Bangladesh while few offers for HMS 1&2 in containers from West Africa and Brazil remained around USD 358-363/MT, CFR levels. Thus, price assessment moved slightly down by USD 3-5/MT on W-o-W basis.
“Current situation of scrap market is not much encouraging for scrap imports. Very few offers are available for Shredded and P&S scrap in the market. Few of the buyers are even willing to pay around USD 380/MT for P&S scrap but feasible offers are not available at the moment” – shared leading scrap importer from Bangladesh.
“Local ship cutting scrap prices are around BDT 31,500-32,000/MT (USD 378-384), Ex-works excluding local taxes which is still low and workable.”- shared a source. Many of the steelmakers kept preferring local ship breaking scrap over the price gap between local and imported scrap.
Ship breaking prices remained stable amid improving sentiments in Bangladesh. Prices assessed at USD 420/LDT for general dry bulk cargo, at USD 430/LDT for tanker cargo and at USD 440/LDT for containers respectively on CNF Bangladesh basis.
In the last week, a leading scrap buyer from Bangladesh booked two bulk scrap import vessels for USA origin Shredded scrap despite which containerized scrap bookings remained less heard and importers remained seeking for further fall in imported scrap offers.
As per vessel line up data, Bangladesh imported 90,650 MT bulk scrap in Jan’18 as against 147,090 MT imports in Dec’17.Thus, Bulk ferrous scrap imports in Bangladesh fell 38% M-o-M in Jan’18.
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