A representative from a major trading house stated that Chattogram-based mills are not making any new bookings, as they have sufficient inventories until December. With current capacity utilisation at around 50%, scrap consumption has slowed down significantly.
Recent deals:
- 1,000 t of HMS (80:20) from New Zealand was booked at $372/t CFR Chattogram.
- 1,500 t of GI bundles from the Philippines were sold for $348/t CFR Chattogram.
- 500 t of shredded scrap from Taiwan was booked at $400/t CFR Chattogram.
Assessment prices
- BigMint's assessment of Europe-origin containerised shredded was down by $6/t w-o-w to $402/t, while HMS (80:20) prices stood at $389/t, a decrease of $6-7/t from last Wednesday's assessment.
- BigMint's latest weekly assessment indicates that US-origin HMS (80:20) bulk prices stood at $385/t, stable from last week.
- BigMint's weekly assessment indicates that Japan-origin H2 bulk price remained slightly up by $2/t w-o-w at $367/t CFR Chattogram.
Domestic market
In the domestic market, local scrap prices were heard in the range of BDT 50,500-51,500/t. Meanwhile, plate scrap from ship-breaking was at around BDT 57,000-59,000/t. Rebar offers in Dhaka stood at BDT 82,000-82,500/t. In Chattogram, these were reported at BDT 85,500-87,000/t.
A Dhaka-based mill source added, "The economy is sluggish, construction activity remains slow, and rebar demand is weak. Manufacturers are holding onto their stocks, with some liquidating at distressed levels (- BDT 5,000 to -6,000/t) or effecting even deeper cuts." Sponge iron intake has also reduced, as major mills have sufficient inventory for the next month.
According to domestic market insiders, rain has stalled buying activity. Steel mills are well-stocked with sufficient inventory, suggesting they are unlikely to make any purchases this month.
Bangladesh's ship recycling market faced continued struggles, with domestic steel plate prices dropping to $533/t amid weak demand. The economy remained unstable, with delayed infrastructure projects and the Bangladeshi taka weakening to BDT 119.50 against the dollar. Low demand from local mills slowed ship recycling, with only one large LDT tanker arriving at Chattogram Port. The market also grappled with a shortage of US dollars and a growing trade deficit, causing LC openings to decline and restricting large-value ones. The total tonnage at Chattogram Port last week was 34,033 LDT.
Outlook
A potential rebound in demand is less likely due to delays in old LC payment settlements and trouble in fresh openings of the same. However, participants are optimistic of a recovery in construction activities post-rainy reason. In the imported segment, downward pressure continues on fresh scrap inquiries, with need-based purchases from New Zealand and near-shore destinations.
