Bangladesh: Imported ferrous scrap market experiences slowdown, offers edge down w-o-w

The Bangladesh imported ferrous scrap market experienced a slowdown during the week, influenced by the aftermath of recent elections, leading to a slight decrease in offers. The challenges were further compounded by a persistent dollar crisis.

Shredded scrap offers from Europe were reported at $440/t CFR Chattogram, while HMS (80:20) was heard at $415-420/t CFR.

A trader provided insight, stating, "Over the last month and a half, the demand for finished steel in the local market has significantly declined due to the impact of elections, and no new government projects have been announced during this period."

A representative from a trading company stated, "We have successfully unloaded a bulk vessel from Australia containing 34,000 t of mixed materials. The shipment took 7-10 days. Currently, the market is sluggish with a slow money flow. However, we anticipate an improvement in the finished market soon, which should lead to a better response from buyers."

Indicative offers for US-origin bulk HMS (80:20) were around $425-435/t CFR Chattogram. Simultaneously, Japanese-origin H2 scrap was assessed at $430-431/t CFR.

In a recent development, a Bangladeshi steel mill secured 15,000 t of H2 scraps from the Japanese monthly Kanto scrap export tender at approximately JPY 53,081/t ($) FAS. Notably, the bids witnessed a substantial increase of around JPY 2,061/t ($) m-o-m.

Recent deals

• About 500 t of shredded scraps were sourced from Australia at $435/t CFR Chattogram.
  
  
• Approximately 3,000 t of HMS (80:20) scraps were booked from Australia at $427/t CFR Chattogram.
  
  
• A parcel of 500-t of AB bundles were sourced from Hong Kong at $405/t CFR Chattogram.
  
  
• About 2,000 t of shredded scraps were sourced from Australia at $435/t CFR Chhatogram.
  
  
• About 500-1,000 t of PNS scraps were sourced from Malaysia at $445/t CFR Chattogram.
  
  
• Approximately 500-1,000 t of PNS scraps were bought from Hong Kong at $447/t CFR Chattogram.
  
  
• Around 500 t of AB bundles were procured from the Philippines at $410/t CFR Chattogram.
  
  

Domestic market: In the local market, HMS (90:10) quality scrap prices were evaluated at BDT 62,000/t, while PNS quality scraps stood at BDT 64,000/t. An official from a steel mill noted, "Local scrap prices have increased over the week due to shortages in the domestic market, compounded by issues with letters of credit (LC) approvals."

Rebar prices were reported at BDT 88,000-90,000/t ex-Dhaka and BDT 90,000-95,000/t ex-Chattogram.

Outlook

The imported ferrous scrap market is anticipated to stay uncertain, as buyers contend with a dollar crisis and difficulties in opening LCs. Despite these challenges, market participants express optimism, foreseeing the potential influx of forex funds into banks following the elections.