Bangladesh: Imported ferrous scrap index up $5/t w-o-w; but inquiries slow amid weak steel market

Bangladesh's imported ferrous scrap index climbed up by up to $5/tonne (t), mainly driven by a rise in offers for containerised shredded and HMS (80:20) from Europe. Offers rose due to the hike in freight rates although workable offers continue to remain unchanged in a sluggish steel market and monsoon-affected construction sector.

A supplier said, "The general rate increase (GRI) will add $200/container more which will spike freights. UK yards are focused on supplying to Turkiye and are less active for India and Bangladesh due to reduced generation."

The GRI is an adjustment (typically an increase) in the price and rate of shipping operations., influenced by factors like fuel costs, shipping capacity, operational costs, and regulatory changes.

A major trading house representative said, "Our buyers are asking for material from the UAE, Australia, and New Zealand. We heard that UAE customs scrutiny has increased. We have been supplying large quantities from Malaysia/Singapore, but recent freight hikes and container shortages have halted bookings. For the past four weeks, we have not secured any firm levels, and it is a tough market for suppliers."

Indicative offers for shredded scrap from the UK/Europe were at $426-430/t CFR, while HMS (80:20) was offered at $405-408/t CFR with workable levels at $422-425/t, and HMS (80:20) at $410/t, with workable levels at $400-404/t.

From Australia, HMS (80:20) was offered at $412-415/t, and shredded scrap at $432-435/t. From Southeast Asia, Hong Kong/Malaysia PNS offers were at $444-445/t, while Malaysia bushelings commanded $448-450/t.

UAE-origin HMS 1 was offered at $428-430/t Indicative prices from the UK/EU showed shredded at $428-430/t.

On the other hand, bulk scrap prices from the US rose by $3-5/t with weaker inquiries from Bangladeshi buyers as protests subsided. Similarly, in Japanese H2 scrap, fresh offers increased by up to $3/t with a stronger JPY and better export market realisations from Japanese suppliers.

Japanese H2 was offered at $405/t, with bids at $398/t. US offers included HMS (80:20) mix at $410/t and shredded at $415/t.

Recent deals on a CFR Chattogram basis

• Around 1,000 t of Australian-origin PNS was booked at $442/t CFR Chattogram.
  
  
• Approximately 700 t of UAE origin HMS-PNS mix was booked $430/t CFR Chattogram.
  
  
• Around 500 t of UAE-origin PNS was booked at $442/t CFR Chattogram.
  
  

Domestic market overview

Domestic rebar prices dropped amid a slow-moving steel market to BDT 84,000-86,000/t exw-Dhaka and BDT 91,500-92,000/t exw-Chattogram, with workable levels for billets at BDT 72,000/t and offers at BDT 74,000/t. Ship plate scrap ex-Chattogram yard was heard at BDT 72,500-73,000/t exy and HMS scrap at BDT 60,000-61,500/t exy.

A trading company representative said, "Bangladesh, this month, faced pressure to close the IMF loan, impacting local markets. Rebar prices are falling, and local shipbreaking scrap prices are sluggish, with buyers procuring at minimal levels."

Outlook: Market insiders expect containerised scrap prices to remain firm due to rising freight costs from the UK and Australia. In contrast, bulk scrap inquiries may pick up from larger mills preparing for the next production cycle after the monsoon. The domestic scrap and steel market is likely to move slowly given the current nationwide conditions.