Bangladesh: Imported Scrap Market Observes Limited Trades; Prices Flat

In conversation with Bangladesh's scrap importers & traders, SteelMint learned that steel mills observed limited trades for imported scrap on low demand in the finished steel market

It was earlier expected that mills would turn active for scrap restocking ahead of Ramadan, however, very limited availability of offers globally and expectation of further correction keep sentiments skeptical. Many steelmakers have already filled their scrap inventories considerably by buying aggressively in earlier months.

SteelMint’s price assessment for containerized Shredded scrap from UK, Europe stands at around USD 348-350/MT, CFR Chittagong, which is mostly stable against the last week’s report. Containerized HMS 1 was being offered at around USD 335-340/MT, CFR from South American suppliers. Few trades have been reported at around USD 333-335/MT, CFR. UK origin HMS (80:20) is being offered at USD 325-330/MT, CFR Chittagong.

Offers for P&S scrap in containers is assessed unchanged at around USD 360/MT, CFR Chittagong.

Domestic scrap prices fall sharply - Local melting scrap prices observed sharp fall amid increasing supply and lessened demand ahead of Ramadan. Local melting scrap reported at around BDT 33,000-33,500/MT (USD 391-397), ex-works inclusive of taxes. Prices fell around BDT 1,000-1,500/MT against last week. While local shipyard scrap prices continued hovering in a similar range resulting in few steel mills to prefer domestic scrap over imported.

Uncertainty about new duties on steel - Sources shared that possibility of an increase in existing duties or imposition of additional duties is in the steel sector might turn sentiments down in the market which may also impact steel prices by around USD 15-20/MT post announcement of the Budget scheduled in early Jun’19.