Bangladesh: Imported containerised, bulk scrap prices show divergent trends amid moderate trades
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In Bangladesh, the imported ferrous scrap market witnessed comparatively slow activity and a divergent price trend following moderate activities last week. Containerised shredded scrap from the UK and European sources experienced a nominal rise of $4-5/t w-o-w, while HMS (80:20) offers remained slightly down at $413/t CFR Chattogram.
Several containerised deals, totalling approximately 6,500-7,000 t, were closed in the last seven days involving various grades and origins such as Peru, Australia, Thailand, and Malaysia.
Japanese H2 scrap offers were in the range of $428-432/t, while US-origin HMS (80:20) bulk indicatives ranged from $433-435/t, with buyer enquiries at around $425-430/t CFR Chattogram.
BigMint's assessment for Europe-origin shredded scrap (containers) rose by $5/t to $438/t, while HMS (80:20) containers dropped by $1/t w-o-w to $413/t.
According to an official from a steel mill, local steel demand is currently sluggish. Additionally, several contractors have not received their payments yet from a few trading houses. And declining prices in Turkiye are nudging buyers to adopt a wait-and-watch approach.
HMS (80:20) offers from the US were heard at $408-410/t CFR, and the HMS/PNS mix from the Middle East was priced at $420-422/t CFR, although bids were around $414-416/t CFR. Similarly, PNS from the UAE was offered at $435/t whereas bids were nearly $430/t CFR.
Recent deals:
Around 1,000 t shredded from Australia was sold at $440/t CFR Chattogram
Approximately 500 t of Australia-origin PNS was booked for $450/t CFR Chattogram.
Around 500 t Malaysian busheling scrap was booked at $450/t CFR Chattogram.
Around 500 t of PNS scraps were booked from Peru at $428/t CFR Chattogram.
A parcel of 500-t PNS scraps were sourced from Malaysia at $435-440/ CFR Chattogram.
Around 1,000 t of HMS (80:20) scraps were sourced from Australia at $412/t CFR Chattogram.
A parcel of 1,500 t of NTP scraps were booked from Thailand at $440/t CFR Chattogram.
A parcel of 1,500 t of PNS scraps were booked from Malaysia at $438/t CFR Chattogram.
Domestic market: In the domestic market, billet prices were assessed at BDT 75,000-76,000/t ($683-693/t), while shipyard scrap was being offered at BDT 61,000-64,000/t ($556-583/t), and PNS quality scrap stood at BDT 67,000-68,000/t ($611-620/t). Domestic rebar prices were at BDT 84,000-94,000/t ($766-857/t) in Dhaka and Chattogram.
As per recent industry reports, stakeholders in Bangladesh's shipbreaking industry are calling for urgent government assistance to sustain the sector amid a crisis. The industry has been severely affected by the economic and dollar crises, resulting in a sharp decline in imports of scrap ships.
President of the association Abu Taher highlighted the industry's challenges, noting a decrease in shipbreaking yards from 160 to 120 over the past five years, with only 20-25 yards currently operational. He emphasised the need to transform all yards into green yards by 2025. He urged for financial stimulus and policy support to prevent collapse.
Vice President Mohammad Zahirul Islam highlighted the financial burden of transforming traditional yards into green yards and called for government assistance in the form of long-term loans with low interest rates.
Chattogram Bureau Chief of The Business Standard, Shamsuddin Illius, underscored the importance of industry owners sharing accurate information to counter negative perceptions.
Outlook: As per market participants, a slight variation in imported scrap offers and bids may be seen in the coming weeks with a moderate bookings following demand from domestic mills. Some sources also say that prices may increase modestly if suppliers continue to face challenges in collection rates.
