Bangladesh: Imported ferrous scrap offers rise significantly w-o-w amid few containerised deals

The imported scrap market in Bangladesh exhibited moderate trade activity with limited deals for containerised material. Indicative offers rose by $10-15/t w-o-w compared to previously assessed prices.

Bulk HMS offers from the US also surged as Turkish buyers engaged in securing fresh material. On the containerised front, offers witnessed an upward trend, though buyers showed reluctance to confirm container bookings.

Bangladeshi mills maintained their presence in the market and engaged in negotiations. However, transactions were moderate compared to the first half of the week. Cautiousness prevailed among buyers due to the unstable economic conditions and sluggish domestic market movements.

Recent transactions:

• Purchase of 500 t of Brazil-origin HMS (80:20) bundles at $380/t CFR Chattogram.
  
  
• Booking of approximately 500-1000t of Australian HMS (90:10) at $420/t CFR level.
  
  
• Booking of 500 t of Brazil-origin HMS (90:10) at $410/t CFR Chattogram.
  
  
• Procurement of Australia and New Zealand origin material at $420-450/t level (500 t HMS 90:10 from New Zealand at $420/t, and 500 t shredded from Australia at $450/t CFR level).
  
  
• Approximately 2,000 t of Hong Kong-origin PNS secured at $448-455/t level for CFR Chattogram.
  
  
• Supply of LMS bundles from the Philippines at $310/t for around 300 t, as per market sources.
  
  

Offers and indicatives

• Offers for US-origin bulk scrap were assessed at $408/t CFR.
  
  
• Indicatives for Japanese-origin bulk H2 stood at around $408-410/t CFR.
  
  

Domestic market update:

Demand for local rebar in the finished steel market was slow, while shipyard scrap prices remained stable at BDT 60,500/t(553/t). Chattogram rebar offers remained range-bound, ranging from BDT 94,000-96,000/t ($859-877/t), and Dhaka region rebar offers were heard at BDT 83,000-85,000/t ($758-776/t).

The Bangladeshi taka remains largely stable against the US dollar, trading at around 109.48 w-o-w.

Outlook

Offers are anticipated to remain elevated due to the upward trajectory of global scrap prices. Suppliers are quoting higher prices due to limited availability for the South Asian market. Market sources indicate that Bangladeshi buyers are diversifying sourcing from different origins to maintain their margins. The upcoming week could witness bulk deals in the market due to ongoing negotiations.