Bangladesh: Bulk Scrap Imports Drop in Feb'19 Amid Sufficient Inventories

According to vessel line up data maintained with SteelMint, Bangladesh bulk scrap imports registered a drop of 88% M-o-M to 29,550 MT in Feb'19 as against a record high of 236,783 MT in Jan'19. It seems a sufficient amount of scrap inventories imported in the previous month (Jan'19) could have resulted in lowered scrap import volumes in Feb'19. Over the month, local steel demand remained average on improved activities in the construction sector.

Chittagong's ship breaking market has observed nearly all larger LDT ships heading to it since past couple of months. The local port remained full of activity with a number of large LDT units continued to reach the anchorage position. Notably, Bangladesh had observed the highest tonnage (368,651 LDT) of import in subcontinental ship breaking with 38 ships beached in Jan'19.

Imported scrap offers to Bangladesh rise amid hike in global offers - Following strengthening scrap prices in Turkey, imported scrap offers to South Asian countries have increased that against last week. However, buying interest in Bangladesh remains very less at the moment. Participants are optimistic for the scrap bookings in the near terms provided local steel prices remain supportive.

SteelMint's' price assessment for Shredded scrap increased by USD 5-10/MT to USD 350/MT, CFR against the last report of USD 340-345/MT, CFR. Scrap yards based in Europe, UK and USA are quoting USD 350-355/MT, CFR. In recent trade containerized Shredded scrap from New Zealand origin reported being sold at around USD 355/MT, CFR Chittagong.

Containerized HMS 1 from origins like Chile, Brazil and South Africa traded at around USD 340/MT, CFR while HMS 1&2 from South American origins being assessed in the range USD 335-340/MT, CFR Chittagong. Price assessment of HMS 1&2 from Europe, UK and USA stand at around USD 330-335/MT, CFR up USD 5-10/MT on W-o-W basis.

Domestic scrap prices continued uptrend on W-o-W basis - Local scrap and ship cutting plate prices continued uptrend recovering by BDT 500-700/MT on a weekly comparison. Shipyard scrap selling prices were hovering in the range BDT 37,700-38,000/MT, (USD 445-452) ex-Chittagong while local HMS scrap heard at around BDT 36,000/MT (USD 428), ex-plant basis inclusive of local taxes.