Bangladesh: 3rd Bulk Scrap Booking Reported in October

Bangladesh's bulk scrap market continues to remain active with the 3rd bulk cargo booking in Oct’19 being reported this week. Steel capacity ramp ups in the country are pushing ferrous scrap imports up in Bangladesh.

In the latest booking reported, a Chittagong based steelmaker has again booked a bulk vessel from an Australian supplier with total quantity of 13,000 MT comprising of 8,000 MT of HMS 1&2 (80:20) at USD 252/MT and 5,000 MT of P&S (Bonus Grade) at USD 267/MT CFR Chittagong.

Prior to this, two deals were reported earlier this month by SteelMint. A bulk vessel for ferrous scrap was concluded, wherein a Chittagong based steelmaker booked a mixed cargo comprising of 20,000 MT Shredded and 5,000 MT of HMS 1 at an average price of around USD 260/MT CFR Chittagong. Before this, another steelmaker had booked a bulk vessel of scrap in Oct'19, from a global metal recycler’s Australian division, comprising of total of 25,000 MT of mixed cargo with 19,500 MT of HMS 1&2 (80:20) and 5,500 MT of P&S scrap at USD 263/MT and 273/MT respectively, CFR Chittagong for November shipment.

Containerized scrap offers rise upto USD 15 - Imported scrap offers to Bangladesh have sharply moved up in recent trades, following the global upturn since last week amid active bookings, SteelMint learnt from market participants. SteelMint’s assessment for containerized Shredded scrap from Europe and North America stands in the range of USD 285/MT, CFR Chittagong, rising by USD 10/MT against last week’s report.

HMS scrap prices too have shot up this week, with HMS 1&2 from Brazil and Australia being traded at USD 265/MT CFR. 3,000 MT of HMS 1&2 (90:10) and 1,000 MT of HMS (80:20)from Australia were booked by a Dhaka based Steel mill this week. HMS 1 offers stand around USD 275/MT CFR.

Amid few inquiries observed, offers for P&S now stand at around USD 290/MT CFR.

Domestic scrap prices stable - Local scrap prices have been witnessing stability in the recent weeks after sharp decline in the previous 2 months. Shipyard scrap in Chittagong market is being offered at around BDT 30,000-30,500/MT (USD 354 -360 ) ex Chittagong, while trades have improved in comparison to last week, on account of hike in imported scrap offers.