Bangladesh: Imported containerised scrap prices remain stable w-o-w; bulk offers under pressure

Imported ferrous scrap offers into Bangladesh were stable w-o-w for containerised scrap prices while bulk offers remained under slight pressure amid a rise in fresh inquiries from Australia and the US. LC delays have slowed down fresh inquiries but buyers will procure right before the next production cycle for late August-September and majorly from the UAE, US and AUS. High container freights from Hong Kong, Singapore, and Malaysia are still putting pressure on buyers.

Containerised scrap offers/indicatives

According to market insiders, offers from Australia were heard for HMS(80:20) at $410/t, with bids ranging from $400-405/t and shredded at $430/t with bids at $420-425/t. Offers from SE Asia, especially from Hong Kong/Malaysia, for PNS were at $440-445/t, Malaysian busheling at $445-450/t, with major mills bidding at $430-435/t.

Offers from the UAE were heard for HMS (90:10) at $428-430/t with bids at $423-425/t, HMS and PNS mix at $430-432/t with bids at $425-426/t.

According to another trader, the current offer for US-origin shredded scrap stands at $430/t CFR Chattogram, with an imminent buying bid anticipated. The offer was submitted on Monday and the trader expects a response soon.

However, "we continue to face challenges with delayed LC openings, typically occurring 4-5 weeks after contract signing, impacting our operational planning," he stated.

The US domestic scrap market remains stable, with minimal price fluctuations despite the summer break causing a slight slowdown in activity and reduced movements. Nonetheless, overall stability persists in the market.

Bulk scrap offers/indicatives

Japan-origin H2 offers were heard at $400/t with maximum bid levels at $395/t; heavy scrap (HS) were heard at $420-425/t with maximum bids at $415/t; and Shindachi was offered at $432-435/t with bids at $430/t.

US origin HMS (80:20) mix scrap was offered at $405/t with bids at $402-405/t. Shredded was offered at $410/t with bids at $406-408/t, and bonus at $415-420/t with bids at $412-415/t.

Sources indicate that major buyers from Dhaka and Chattogram are likely to book some cargoes from the US by the end of this month due to favourable prices.

The market is seeing increased activity before the monsoon intensifies, particularly with heightened interest in US bulk scrap as buyer-seller price expectations converge.

According to a buyer source, a bulk vessel booked from the US in May has recently arrived due to delays in processing letters of credit.

Inquiries for three to four bulk offers (two small bulks from Singapore and two from Japan), along with over 15,000 t in container offers from Australia and the UAE were heard.

Preparations for the September and October production cycle are underway, with expectations of multiple bookings this week for both bulk and containerised scrap. Deals are projected in the $425-428/t range, influenced by offers from the US and UAE ranging from $430-435/t.

In the recent July Kanto scrap export tender in Japan, Bangladesh was notably absent from purchasing despite participating in the bidding process.

Changes in assessment prices:

• BigMint's assessment of Europe-origin containerised shredded was stable w-o-w to $424/t, with HMS (80:20) at $402/t (unchanged w-o-w).
  
  
• BigMint's latest weekly assessment shows US-origin HMS (80:20) bulk prices decreasing by $3/t t0 $402/t CFR Chattogram.
  
  
• Japan-origin H2 bulk prices were stable at $398/t CFR Chattogram.
  
  

Domestic market: Domestic rebar prices were at BDT 87,000-87,500/t exw Dhaka and BDT 93,000-93,400/t exw Chattogram, with workable levels for billets at BDT 74,500/t and offers at BDT 75,500/t. Scrap ship ex Chattogram yard was heard at BDT 61,000-61,500/t exy.

Outlook:Market watchers foresee some positive signs in imported bulk scrap trades from the US amid viable offer levels. However, the domestic market might see sluggish demand during the monsoon season.