Bangladesh: Imported ferrous scrap market witnesses slow activity post-Eid holidays

The imported ferrous scrap market in Bangladesh experienced a slow week post the Eid holidays. The sluggish domestic market as well as reduced buying interest for finished and semi-finished steel products due to the monsoon season contributed to the decline in scrap import activities.

Although a few buyers are active, there remains a major problem of a bid-offer disparity. Sellers from the US and the UK are hesitant to deliver to Bangladesh as they find other destinations like India and Turkiye more favourable. Nevertheless, new bulk sales are taking place, with HMS (80:20) priced around $415-417/t and UK/US-origin shredded at $420-422/t for shipments in August.

According to a Bangladeshi trader, the market is not fully active. While bulk deals are being made, the issue of letters of credit (LCs) continues to hinder container bookings. Additionally, the monsoon season has made local yards' conditions less favourable.

Fresh offers

• Indicative offers for US-origin bulk scrap remain range-bound at $410-415/t CFR.
  
  
• Japanese-origin H2 material prices remain unchanged at around $415/t CFR, reflecting weaker and uncertain market sentiments.
  
  

SteelMint's assessment for UK-origin shredded scrap stands at $442-445/t CFR Chattogram, a slight decrease of $4-6/t w-o-w.

Domestic market less active

To navigate the current market conditions, domestic steel manufacturers in Bangladesh are maintaining a cautious approach. By adjusting their production levels, they aim to manage expenses and adapt to sluggish demand from end users. These adjustments reflect the need to balance operational costs and market demand.

Fresh offers for rebars by Chittagong-based steel mills remain largely stable at BDT 96,000-98,000/t ($885-904/t) exw, a decrease of BDT 2,000/t($18/t) w-o-w. Dhaka-based mills are offering at BDT 88,000-90,000/t ($812-830/t) exw, a slight decrease of BDT 1,000/t ($9/t) w-o-w.

Local ship-breaking scrap prices remained stable at BDT 60,000-62,000/t ($553-572/t) exy.

Outlook

The market outlook remains uncertain amid weaker sentiments. There are indications that buyers in Bangladesh may explore alternative options to meet their scrap requirements. One such alternative is the upcoming Kanto tender in Japan, which is scheduled to take place in July.