Bangladesh: Bulk scrap buyers become active, but container market remains slow

Bangladesh-based major steel players remained active in the market, with a couple of deals heard to have been concluded recently. Interestingly, the buyers are showing more interest in Australian bulk cargoes than in US- or UK-origin material. However, the market is moving slowly, as it approaches the Eid holidays.

After the Japanese Kanto scrap export tender concluded this month, Bangladesh-based steel producers closely observed the market situation. Steelmakers are hopeful that the market may pick up after the Eid holidays.

On the other hand, suppliers are trying to sell their material at the best profit margins. However, quality material remains the first priority of the buyer. Hence, despite the continuous decline in US-origin material due to limited transactions recorded recently by Turkish steel producers, Bangladesh-based steel mills kept inquiring about Australian material.

Recent deals

• The Australian cargo contained 25,000 t of HMS (80:20) which was booked at $458/t and 3,000 t of bonus material, booked at $463/t CFR Chittagong.
  
  
• Another cargo of 27,000 t has been booked from the same origin, comprising HMS (80:20) and shredded - booked at $456/t and $461/t CFR Chittagong, respectively.
  
  

Recent offers

• Fresh offers for US-origin bulk HMS (80:20) were heard at $455-460/t CFR. However, a fresh deal is yet to be concluded.
  
  
• Fresh indicative offers for Japanese H2 material were heard at $440/t CFR levels. However, trade remains absent.
  
  

Container market muted

Market players remained sidelined ahead of the Eid holidays. Labourers will also remain out of the market on a prolonged holiday. Hence, market activity may remain gloomy.

• Indicative offers for UK-origin shredded containers were heard at $470-480/t CFR level.
  
  
• HMS of UK origin was heard at $450/t CFR levels.
  
  

Few deals were heard to have been concluded from other origins, due to cost-effectiveness.

Domestic market remains sluggish

Domestic market sentiments remain sluggish ahead of the Eid holidays. Prices are witnessing a downtrend due to low finished steel consumption, Steelmint understands.

Major Chittagong-based mills kept prices high at BDT 98,000/t levels for rebar.

Dhaka-based mills, following the trend, kept rebar prices unchanged at BDT95,000-96,000/t ($900-910/t). Local shipbreaking scrap prices are at BDT 64,000-65,000/t exy.