Bangladesh has marked no major fresh bookings for Indian sponge iron (DRI) due to fall in local steel prices & lowered production as well. Also healthy bookings made during the end of Sep’19 was key factor behind weak demand this week.
SteelMint learned that, domestic steel prices in Bangladesh have continued to remain on down trend and recently dropped by BDT 1,000/MT (USD 12) in a week duration.
Latest offers for Indian sponge iron (80 FeM, 100% lumps) is hovering at USD 255/MT CPT Benapole (dry port of India & Bangladesh), which is equivalent to USD 270/MT CFR Chittagong.
The major buyers in Chittagong & Dhaka confirmed that fresh bookings are on hold and they are not in hurry to make aggressive bookings.
However with recent hike in imported scrap prices, the producers in Bangladesh have resumed bookings for bulk scrap cargoes. In last 10-12 days total 2 bulk scrap cargoes have been booked by Chittagong based steelmakers, in which each vessel comprising of 25,000 MT of mixed cargo.
It also learned that the steelmakers are now negotiating for another cargoes from USA based supplier. In line offers for imported scrap, the fresh quotation learned with surge of USD 5-8/MT and reported at USD 270/MT, CFR Chittagong, for containerized Shredded scrap from Europe and North America.
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