Bangladesh: Containerised scrap import offers edge up

Bangladesh's scrap import market remained comparatively less active throughout the week. Meanwhile, prices remained mostly unchanged on a weekly basis, although offers increased of late.

Bangladesh's bulk scrap buyers have raised enquiries for bulk cargoes after remaining quiet for the last one month, market insiders informed. Two bulk scrap bookings from the US were heard concluded recently. However, the details remained unconfirmed till the time of publishing this report.

"Bulk freight rates from the US west coast to Bangladesh have come down recently, so there are rumours that bulk cargoes are booked but confirmation has not been received," said a scrap trader.

Indicative offers for US-origin shredded material in bulk are being cited at $530/tonne (t) CFR Chittagong levels.

Limited offers were heard from Japan for H2 scrap, owing to the Kanto tender scheduled for tomorrow as both buyers and suppliers are waiting for the tender's outcome.

In addition, a few buyers have shifted to local scrap to fulfil their requirements, as imported scrap offers are still at higher levels as compared to local scrap.

Recent offers in containers

• Recent offers for UK/EU origin shredded are being quoted at $540-545/t CFR Chittagong levels. However, very limited deals were heard to have been concluded.
  
  
• Earlier last week, deals of 2,000 t of shredded from the UK was reported at $525/t CFR Chittagong levels.
  
  
• Offers for HMS 1&2 (80:20) of UK/EU-origin are being offered at $500-505/t CFR Chittagong.
  
  
• Brazil-origin HMS 1&2 (90:10) is quoted at $510/t CFR Chittagong. Australian HMS 1&2 (90:20) is offered at $520/t, while bids for the same have been received at $505/t, which is not acceptable to suppliers.
  
  

Domestic re-bar offers largely stable: Bangladesh's domestic re-bar market is witnessing variations, as per SteelMint reports. Major steel mills in Bangladesh have kept their offers unchanged at BDT 72,000-73,000/t exy-Chittagong.

However, on a yearly basis, re-bar prices are relatively lower and the market is also less active due to the pandemic. Re-bar prices are likely to rise owing to increasing demand for ahead of the upcoming construction season (Sept-Nov), SteelMint understands.

In contrast, Dhaka-based mills' offers for re-bar are at BDT 66,500-67,000/t exy, down BDT 2,000/t exy, w-o-w.

SteelMint's assessment for shipbreaking scrap stands at BDT 50,000-54,000/t exy levels, witnessing a fall of around BDT 1,300/t, w-o-w, due to low demand.