Imported scrap offers to Bangladesh have witnessed an upturn this week, as prices moved up after nearly 3 months, on account of global rebound, SteelMint learned from market participants. Trades however, remained limited as most steelmakers were seeking further clarity on global prices.
SteelMint’s assessment for containerized Shredded scrap from Europe and North America stands in the range of USD 270/MT, CFR Chittagong, rising by USD 5-8/MT against last week’s report. Earlier in the week, few bookings for shredded were reported at around USD 270/MT CFR from the USA and Australian origins, while European shredded was being offered at around USD 266-268/MT CFR. Some USA based yards were even reported to be offering at USD 275/MT, however, bids from buyers remain lower.
HMS scrap prices have also moved up considerably this week, with HMS 1 from Australia and South Africa being offered in the range of USD 260-265/MT CFR Chittagong, with buyer’s interest standing at USD 260/MT. HMS 1&2 (80:20) and from South American and European origins was assessed at around USD 255-256/MT CFR, amid active inquiries in the market.
Offers for Brazil origin P&S scrap has inched up slightly with some offers at around USD 270-275/MT CFR, remaining at almost at par with Shredded scrap amid limited demand.
It was learnt that during closing of last week, another booking of Bulk vessel for ferrous scrap was concluded, wherein a Chittagong based steelmaker booked a mixed cargo comprising of 20,000 MT Shredded and 5,000 MT of HMS 1 at an average price of around USD 260/MT CFR Chittagong.
Prior to that, it was confirmed that a Chittagong based steelmaker (new entrant in the bulk market) had booked a bulk vessel of scrap from a global metal recycler’s Australian division, comprising of total of 25,000 MT of mixed cargo with 19,500 MT of HMS 1&2 (80:20) and 5,500 MT of P&S scrap at USD 263/MT and 273/MT respectively, CFR Chittagong for November shipment. The said steelmaker is now negotiating for another bulk cargo from another USA based supplier.
Domestic scrap availability turns tight – It was learnt that Ship recyclers have withheld their offers for local scrap this week amid tight supply. Currently, limited offers for shipyard scrap in Chittagong market stand at BDT 31,000-31500/MT (USD 366-372) ex Chittagong, up by BDT 500/MT w-o-w, while landed cost to Dhaka mills stands at BDT 32,500/MT. LMS bundles (DRI alternative) remain at around BDT 26,000/MT ex Chittagong.
The domestic market remains in wait-and-watch mode as finished steel demand remains low.
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