Bangladesh : Containerized Shredded Scrap Prices Remain Stable in Recent Trades

In conversation with the market participants, SteelMint learnt that trades for imported scrap to Bangladesh have remained average, even as offers have stood stable this week, after several weeks of a sharp downtrend. Even as 2 Bulk cargo bookings were reported at around closing of last week, container trades remain slow. However, with indications of stability or even a slight uptrend in the coming days, it is likely that steelmakers will become active for procurement by next week, looking to restock at the current low price levels.

SteelMint's assessment for containerized Shredded scrap from the UK, Europe and USA stand s in the range of USD 282-285/MT, CFR Chittagong almost at the same level as last week's report, as few bookings were reported in this range. As per reports earlier today, most offers for Shredded from suppliers in the UK and Europe stand at USD 285/MT CFR, thus indicating a likelihood of an uptrend in short term, while trader material is available at USD 3-4/MT lower.

In the latter half of last week, Two bulk scrap cargo bookings were reported to Bangladesh, as a major USA (west coast) based supplier sold to bulk vessels of around 32,000-35,000 MT each to 2 prominent Chittagong based mills, with mixed cargo comprising of Shredded scrap at USD 270/MT and HMS 1 scrap at USD 265/MT, CFR Chittagong for Oct'19 delivery.

HMS scrap offers also remained mostly unchanged from last week, HMS 1 offers from Australia and South Africa and Chile stood at around USD 270-275/MT CFR, while HMS 1&2 (80:20) from Brazil is still bring offered in the range of USD 265-266/MT CFR Chittagong. Amid low sales in Pakistan and India, Dubai based HMS suppliers have been offering to Bangladesh since last month, with the current offers of HMS 1 standing at around USD 275/MT CFR, albeit in limited deals of low quantity.

P&S scrap has not found much demand among buyers off late, with few offers from Brazil being reported at around at around USD 290-295/MT CFR.

Domestic Scrap Market at a Standstill - While the oversupply situation of local shipyard scrap was yet to be resolved, certain issues from customs dept has further affected the domestic shipyard scrap market. Offers for yard scrap stood at around BDT 30,500-31,000/MT (USD 361-367), ex Chittagong, last week, while negligible sales were reported this week as market suppliers remained out of the market..

Finished steel prices had dropped further in the last two week on continued low sales, while demand is expected to improve with monsoon almost coming to an end, which may see a slight rise in prices again, while the market is keeping a positive outlook for the coming month.