Bangladesh: Imported Scrap Prices Stable; Demand Subdued

SteelMint learned in recent conversations with market participants that imported scrap offers to Bangladesh have remained almost stable however, with sluggish demand persists for finish steel in domestic market, the scrap requirement from buyers hasn’t picked up yet and market has been observing limited interest among importers at the moment.

Market remains subdued for more clarity on global scrap prices and Indian sponge export offers. Few participants expect that imported scrap prices would come under pressure in upcoming days amid considerable fall in sponge export offers from India.

In recent deal concluded, containerized Shredded from Europe heard to have booked at USD 372/MT, CFR. While Offers from UK for the same are still hovering in the range of USD 375-380/MT, CFR Chittagong. South African origin HMS 1 traded at stable levels of USD 365/MT, CFR Chittagong. UAE based suppliers keep offers similar as that of last week.

According to sources, a bulk cargo booking was concluded around two weeks’ ago by one of the leading importers in Bangladesh. Around 38,000 MT of European scrap was sold at an average price of USD 365/MT, CFR Chittagong.

Indian sponge export offers to Bangladesh have corrected sharply to USD 350-355/MT, CFR Chittagong levels following the plummet in domestic prices and currency depreciation in India. Declined prices for Indian sponge iron and more availability ship breaking scrap is resulting in steady buying for local scrap in Bangladesh.

Bangladesh local scrap prices almost stable W-o-W - Local scrap prices equivalent to P&S scrap heard at BDT 35,500-36,000/MT while local HMS scrap prices heard stable at around BDT 34,500/MT (USD 412) as against last weeks' report inclusive local taxes and it still remains cheaper over imported.

Local finish steel market continues downtrend on dull demand - Local rebar prices in Bangladesh have edged down further with no pick up in finish steel demand. Prices were assessed for small scale local rebar producers at BDT 55,500-56,000/MT (USD 662-668), CFR Chittagong.

Local ship cutting plate prices rebound after falling - Ship cutting plate prices have rebounded by BDT 400-500/MT now after falling by BDT 700-800/MT towards end of last week. Prices assessed at BDT 41,500/MT for 16 mm, at BDT 40,500/MT for 12 mm and at around BDT 42,500/MT for plate thickness 20 mm & above.

Ship breaking market observes firm demand; prices surge - Bangladesh ship cutting market continues uptrend again this week as prices moved up by USD 10-15/MT W-o-W. Current ship cutting prices assessed at USD 440/LDT for general dry bulk cargo, at USD 450/LDT for tanker cargo and at USD 460/LDT for containers on CNF Bangladesh basis. Despite suppressing of demand with several sales and arrival of 5 VLCC, Bangladesh remains best positioned location for yet another week.

source: SteelMint