Bangladesh: Imported Scrap Trades Limited; Offers Range bound

SteelMint learned from industry participants that imported scrap trades in Bangladesh have remained slow as current prevailing offers in the market are comparatively high against buyers’ expectation and other subcontinental markets.

Participants shared that global scrap prices have moved down recently turning Bangladeshi buyers hesitant to book more volume as they wait for more clarity on the market.

Sluggish demand in the finish steel market, Ramadan holidays scheduled in the next month and expected slowdown in construction activities on rains keep sentiments subdued for scrap booking in the country.

SteelMint’s price assessment for containerized Shredded scrap stands in the range of USD 340-345/MT, CFR Chittagong mostly stable against the last week’s report. However, scrap yards based in UK, Europe and Australia are quoting Shredded in the range of USD 345-347/MT, CFR at the moment.

Containerized HMS 1 from Chile and Brazil is being quoted in the range USD 337-340/MT, CFR marginally down against last week. Price assessment of HMS 1&2 from other origins like West Africa and Europe stands at around USD 330-335/MT, CFR Chittagong.

Domestic scrap prices stable on W-o-W basis - Shipyard scrap selling prices assessed at around BDT 37,500/MT (USD 445), ex-Chittagong basis. While local melting scrap prices are being reported at BDT 36,500/MT, ex-works inclusive of taxes.

Turkey’s imported scrap price fall further by USD 4-5 – According to SteelMint’s price assessment, US origin HMS (80:20) scrap moved down to USD 308-310/MT, CFR Turkey. While HMS 1&2 (80:20) of Europe origin stands at around USD 304-305/MT, CFR. In a recent UK deal confirmed, a cargo comprising 25,000 MT of HMS 1&2 (80:20) sold to Marmara based importer at USD 308/MT, CFR Turkey.

Scrap buyers are looking for USD 305-310/MT, CFR levels as prices weakened further. Meanwhile, most of the participants remain engaged in conferences like IREPAS conference in Barcelona and ISRI conference in Los Angeles which would have kept finished steel demand subdued.