Bangladesh: Imported Scrap Prices Inch Up Amid Limited Global Offers

In recent conversations with market participants SteelMint learned that imported scrap offers to Bangladesh have increased slightly following high Indian sponge prices and limited scrap offers in the global market.

The market has observed limited quantity deals ahead of religious holidays as domestic finish steel market remained sluggish. Imported scrap prices increased this week by USD 5/MT, on W-o-W basis.

In recent deals heard, containerized Shredded scrap from UK booked at around USD 377-378/MT, CFR Chittagong. While price assessment of Shredded 211 scrap in containers from Europe stands at USD 372-375/MT, CFR and from UK and USA suppliers at around of USD 375-378/MT, CFR. South Africa origin HMS 1 scrap was traded at USD 365/MT, CFR Chittagong.

HMS 1 offers assessed stable at around USD 363-365/MT, CFR levels from UAE. Few offers heard in the range of USD 350/MT for HMS 1&2 (80:20) from Brazil, Chile and UK. While bulk cargo offers remain high on steady sentiments from seller’s end.

Indian sponge export offers to Bangladesh have remained bullish and are being quoted at around USD 393/MT, CFR following strong fundamentals and continued demand. Increased prices for Indian sponge iron and lesser availability of imported scrap offers in the global market is resulting in shifting interest to local scrap.

Local steel market observes further downtrend on dull demand - Activities in the domestic market were expected to pick up ahead of completion of monsoon. Construction activities remain stagnant impacting finish steel demand and rising stocks at plants have resulted in downward pressure on rebar prices for medium scale producers which have moved down by BDT 500-1000/MT W-o-W.

Bangladesh local ship plate prices remain lower side - Ship cutting plate prices dropped about BDT 300/MT W-o-W and assessed at BDT 41,000/MT for 16 mm, at BDT 40,000/MT for 12 mm and BDT 42,500/MT for 20 mm & above.

Bangladesh ship breaking market turns silent after decent sales – After two large sales reported last week, Bangladesh ship breaking market observed no sales this week amid slump in domestic finish steel prices. However, due to declining steel plate prices, worry about L/C issues and decent number of LDT beached, demand has suppressed for the time being. Prices move down by USD 5-10/MT W-o-W and assessed at USD 415/LDT for general dry bulk cargo, at USD 425/LDT for tanker cargo and at USD 435/LDT for containers on CNF Bangladesh basis.