Bangladesh: Imported ferrous scrap prices down by up to $5/t w-o-w; bid-offer disparity slows bookings

In Bangladesh, imported bulk ferrous scrap prices witnessed a drop by up to $5/tonne (t) w-o-w. Containerised offers down by up to $2/t w-o-w, as the international market showed bearish sentiments with a bid-offer gap of around $10/t.

As per a major mill source, "No prominent bookings have been made by us recently. However, offers from Australia were at $410/t for HMS mixed grade, while shredded was at $425/t CFR Chattogram."

Change in assessment price:

• BigMint's assessment for Europe-origin containerised shredded remained stable w-o-w at $425/t, while HMS (80:20) prices stood at $405/t.
  
  
• BigMint's latest weekly assessment shows US-origin HMS (80:20) bulk scrap prices were down by $5/t to $402/t CFR Chattogram.
  
  
• BigMint's weekly assessment for Japan-origin H2 bulk scrap prices decreased by $4/t w-o-w to $400/t CFR Chattogram.
  
  

Japanese H2 scrap offers were in the $398-400/t range, while buyer inquiries hovered at around $390-392/t CFR.

Over the past week, 10,000 t of containerised scrap deals were concluded, with materials sourced from various origins, including Hong Kong, Malaysia, Singapore, and the UAE. Offers for HMS (90:10) containerised scrap from Australia were reported at $410-415/t, CFR Chattogram.

A major trader source said biddings for containerised PNS materials were at $425-430/t, while shredded were $5/t less ($420-425/t) for the Far East and SE Asia. Offers from Australia were heard at $428/t for shredded and $415/t for HMS 1 mix grade. Buyers were testing the market with variable bids - to get the absolute price at the moment. The source further said they were trying to book HMS (80:20) in bulk at $404/t, shredded at $410/t, and PNS at $415/t.

Recent deal:

• Around 1,000 t of PNS from Hong Kong were sold at $448/t CFR Chattogram.
  
  
• Approximately 500 t of PNS from the UAE were booked at $425/t CFR Chattogram.
  
  
• Approximately 3,000 t of PNS from Malaysia were booked at $435/t CFR Chattogram.
  
  
• Around 1,000 t of shredded from Malaysia were booked at $430/t CFR Chattogram.
  
  
• Approximately 8,500 t of HMS bulk from Singapore were booked at $407/t CFR Chattogram.
  
  
• Around 1,000 t of HMS and PNS mix from the UAE were sold at $421/t CFR Chattogram.
  
  

Domestic market: In the local market, rebar prices stood at BDT 87,000-88,000/t (equivalent to $742-751/t) exw-Dhaka, and BDT 91,000-92,000/t (equivalent to $777-785/t) ex-Chattogram. Billets are at BDT 76,500-77,000/t (equivalent to $649-657) exw. Ship-breaking scrap prices locally are between BDT 59,000-61,000/t (equivalent to $504-521/t).

As per mill sources, mills are seeing a dull phase, with regular bookings done only from SE Asia and the Oceania region. US-origin offers are rare due to high lead time. Plate-cutting scrap is used rarely in Dhaka mills-- and were last heard at BDT 73,000-74,000/t exy. HMS scrap was at BDT 58,000-60,000/t exy, rebar at BDT 87,000-88,000/t exw-Dhaka, and billets at BDT 76,000-77,000/t exw.

Outlook

Imported scrap prices are likely to downtrend in the short term, although suppliers are keeping their offers high due to limited availability of material and rising freight rates from major origins. Buyers may wait for more clarity on price trends in the near terms and do minimal bookings.