Bangladesh: Imported ferrous scrap market continues to remain sluggish w-o-w

The imported ferrous scrap market in Bangladesh saw a sluggish week, primarily due to persistently low demand for UK-origin material. The domestic scrap market also remained dull, with reduced activities in the finished and semi-finished markets. These factors have weighed on the buying interest of Bangladeshi importers, compounded by weak economic conditions that have caused problems with LC openings.

The upcoming Eid holidays further contributed to the slow market, which will be followed by the monsoon season, characterised by low activity. A Bangladeshi trader informed that the market is currently moving at a slow pace and lacks demand. The ongoing issues with LC openings and the market's economic instability add to the challenges faced by importers.

Fresh offers

• Indicative offers of US-origin bulk scrap came down slightly w-o-w to $415/t CFR.
  
  
• Japanese-origin H2 material prices are at around $415/t CFR, unchanged w-o-w due to unclear market sentiments.
  
  

SteelMint's assessment for UK-origin shredded scrap stands at $455/t CFR Chattogram, down by $6/t w-o-w.

Domestic market sluggish

Even though the availability of domestic scrap is limited, falling short of requirements, imported activities remain slow throughout the week.

Fresh offers for rebars from Chittagong-based steel mills remained unchanged w-o-w at BDT 98,000/t ($906/t) exw. Dhaka-based mills have been offering at BDT 90,000-92,000/t ($832-850/t) exw, unchanged w-o-w.

Local ship-breaking scrap prices also remained stable w-o-w to BDT 62,000-64,000/t ($573-591/t) exy.

Outlook

The sluggish domestic market and weaker foreign reserves may continue to pose challenges for importers. Suppliers from Europe and the USA might prioritise other potential markets such as India and Turkiye.