Bangladesh: Imported Scrap Trades remain Slow On Weak Domestic Demand

Imported scrap trades to Bangladesh have turned very slow this week, with no major bookings being reported in the market, SteelMint learned from market participants. Offers to Bangladesh have marginally inched up while the global market has remained stable for over a week now. Although trades have remained limited in the previous few weeks, however, the recent fall in the local finished steel market amid subsided demand has aggravated the situation further.

SteelMint’s assessment for containerized Shredded scrap from UK, Europe and North America stands in the range of USD 295-296/MT, CFR Chittagong, rising by USD 3-5/MT against last week’s report. Very few deals of limited quantity were concluded at these levels, with most buyers staying away from the market. A global supplier shared that all South Asian markets in general and Bangladesh, in particular, remained silent this week with few inquiries received.

A source had shared that another Japanese bulk cargo of around 10,000 MT of Shin Daichi scrap was concluded this week to a Chittagong mill, however the deal could not be confirmed by the time of publishing.

HMS 1 offers from European and Australian origins were reported to be at around USD 285/MT CFR Chittagong, while HMS 1&2 (80:20) from South American origins continued to stand at USD 280/MT range, amid limited interest from buyers.

P&S scrap offers stood stable on a weekly basis at around USD 300/MT CFR with few inquiries.

Domestic scrap offers slide down on low demand - As the finished steel demand plummeted further, leaving steel mills with significant unsold inventories and stocks, the slow down was reflected in buying of local scrap as well. With a sharp reduction in demand, ship recyclers have cut down the offer for ship yard scrap to BDT 27,500-28,000/MT ex Chittagong this week, down by BDT 1500-2000/MT w-o-w. Amid the current market scenario, it is likely that the overall domestic steel demand will remain subdued for the short term.