Bangladesh: Imported Scrap Market Remains Quiet; Offers Standstill

SteelMint learned from industry participants that imported scrap market in Bangladesh has maintained silence in terms of trades since last two weeks’ time.

Local steel prices have dipped marginally on subdued demand which has resulted in sluggish sentiments for scrap imports in the market. Although inquiries at slightly lower levels than prevailing offers continued no major trades have been reported.

SteelMint’s price assessment for Shredded scrap stands at around USD 345/MT, CFR, narrowing down USD 5/MT against USD 350/MT, CFR in last weeks’ report on poor demand. Scrap yards based in Europe and UK were quoting USD 345-350/MT, CFR levels but no buyer was interested at these levels in the market.

Containerized HMS 1 from Chile and Brazil assessed at around USD 335/MT, CFR while HMS 1&2 (80:20) from West Africa is being offered around USD 330-335/MT, CFR. Price assessment of HMS 1&2 from other origins like South America, Europe and UK stands at around USD 330/MT, CFR Chittagong.

Domestic scrap prices unchanged on W-o-W basis - Shipyard scrap selling prices were hovering at around BDT 37,300-37,500/MT, (USD 445-447) ex-Chittagong while local HMS scrap assessed at around BDT 36,000/MT (USD 428), ex-plant basis inclusive of local taxes.

Ship Breaking - SteelMint’s price assessment of stands at USD 450/LT for Tankers, USD 460/LT for Containers & USD 440/LT, CNF Chittagong for Dry Bulk vessels amid several sales reported last week on overall steady sentiments in Chittagong’s ship breaking market. The country continues to fetch a majority of tonnages except few sales sold for Green recycling to India. With Bangladeshi buyers have already filled with their plots, Indian buyers, despite the volatility in local market concluded considerable sales of around 45,000 LDT volume ahead of fiscal year end and strengthening Indian Rupee against USD last week.