Bangladesh: Imported Scrap Offers Inch Up; Buying Activity Remains Low

In conversation with market participants, SteelMint learned that imported scrap offers to Bangladesh have shown a marginal upward movement this week following the recovery in global levels.

Although limited demand of finished steel has kept buying interest low, market is anticipating stability or marginal rise in prices for the coming weeks, depending on participation from major Asian markets post-Indian elections results and buying activity from Turkey.

SteelMint’s price assessment for containerized Shredded scrap from UK, USA and Canada stands in the range of USD 340/MT, CFR Chittagong, rising by USD 5/MT against the last week’s report. Offers from few leading suppliers were also heard in the range of USD 340-345/MT CFR, but no major conclusion of deals were yet reported at these prices, as buying interest remains lower, with scrap suppliers too holding offers at the moment.

Containerized HMS offers also witnessed an increase by USD 5/MT against last week, as South American origin HMS 1 price was assessed at USD 330-335/MT, with limited deals being concluded in this range from Brazil. Offers for P&S scrap in containers have dropped further amid lack of buying interest and currently in the range of USD 340-345/MT CFR.

Meanwhile, local sentiments continued to be bearish as finished steel sales were reported to be below average amid ongoing Ramadan slowdown, leading to slow raw material procurement. With newer projects likely to be announced post-Ramadan expected to improve steel demand, impact of country’s upcoming budget on finished steel prices and clarity on expected new taxes on steel products is also awaited.

Local scrap prices drop on dull domestic sentiments - Local shipyard scrap prices continued to fall for 4th successive week and are currently being reported at BDT 33,500-34,000/MT (USD 397-402), as against BDT 37,000/MT levels in the closing of April’19 and dropping by BDT 500/MT from last week. Local melting scrap prices have dropped further by BDT 1000/MT and currently assessed to be in the range of BDT 32,000/MT (USD 379) ex-works inclusive of taxes. Sponge iron export prices from Indian supplier is expected to remain supported.

Ship plate prices in Chittagong’s market remained stable on weekly basis with local (16 mm & 12 mm) ship plates' offers remaining unchanged at around BDT 43,300-43,500/MT (USD 512-514) and BDT 42,300-42,500/MT (USD 501-503) respectively ex-works Chittagong, inclusive of local taxes. Country's ship breaking market has turned weak in terms of both prices and demand due to already filled yards after observing flurry of bookings in the last couple of weeks.