Bangladesh: Imported ferrous scrap prices drop by over $15/t w-o-w

In Bangladesh, the imported ferrous scrap market witnessed a moderate week in terms of activities, with a drop in price trends observed. Containerised shredded scrap from the UK and European sources dropped $12-15/t w-o-w, while HMS (80:20) offers also dropped to $405-408/t CFR Chattogram.

Several containerised deals, totalling approximately 8,500-10,000 t, were closed in the last seven days involving various grades and origins such as Australia, the UK, Hong Kong, and Malaysia.

BigMint's assessment for Europe-origin shredded scrap (containers) dropped by $14/t to $418/t, while HMS (80:20) containers dropped by $8/t w-o-w to $405/t.

BigMint's weekly assessment for US origin HMS (80:20) bulk scrap witnessed a $15-18/t drop w-o-w and stood at $412/t on a CFR Chattogram basis.

Japanese H2 scrap offers were in the range of $410-415/t, while US-origin HMS (80:20) bulk indicatives ranged from $412-415/t, with buyer inquiries at around $410/t CFR Chattogram.

A mill source noted, "Bulk shredded bidding was at $400-405/t and HMS (80:20) so far converting to $390-395/t from the US as Turkiye currently at $378-380/t, similarly, suppliers offering HMS containers at $406/t from US East Coast to Bangladesh."

As per market participants, offers from the UK/EU at $415-420/t in containers, but we are still observing the market after this sharp fall in bulk prices. We expect prices to cool down to near 410/t in containers and bulk to be pushed down to near 400/t.

A representative from a major trading house noted, "HMS (80:20) is around $402/t and shredded is around $410/t irrespective from all over to Bangladesh bulk quantity from the US. Offers at $405/t from Australia for HMS (90:10) and Brazil origin HMS (90:10) at $400/t CFR Chattogram and Brazil origin HMS (80:20) $380- 385/t CFR Chattogram."

According to another mill source,"Few buyers are waiting for the price to touch the bottom as Turkiye is also dropping sharply, and our finished steel market is also slowing, making it difficult for scrap buyers to get materials at higher prices."

Recent deals:

• Around 500 t of Malaysia-origin busheling scrap was sold at 440/t CFR Chattogram
  
  
• Approximately 500 t Brazil-origin PNS scrap was booked at $430/t CFR Chattogram
  
  
• Around 1,000 t shredded scrap from the UK were sold at $420/t CFR Chattogram
  
  
• A parcel of 1,000 t shredded scrap was booked at $422/t from Australia on a CFR Chattogram basis.
  
  
• Around 1,000 t of HMS 1 from Australia was booked at $420/t CFR Chattogram.
  
  
• Around 1000 t PNS from Hong Kong were sold at $445/t on a CFR Chattogram basis
  
  
• A parcel of 500 t PNS from Malaysia was booked at $435/t on a CFR Chattogram basis.
  
  
• Around 2,000 t of HMS(90:10) from Australia was booked at $413/t on a CFR Chattogram basis.
  
  
• Approximately 1,000 t of PNS from Australia was sold at $423/t on a CFR Chattogram basis.
  
  

Domestic market:In the domestic sector, rebar prices were BDT 89,500-90,500/t ($816-825/t) exw Dhaka, and BDT 96,000-97,000/t ($875-884/t) ex Chattogram, while billets were priced at BDT 77,000-78,000/t($702-711) exw. Market participants observed an increased electricity tariff effect, as shown in the market price of rebar and billets. Local ship-breaking yard scrap prices are heard at BDT 63,250-64,500/t($579-583/t).

Outlook: Steelmakers may wait and watch for a further price drop in scrap especially before acquiring bulk scraps from the US and other origins. Recent hikes in electricity tariffs might witness an increase in finished scrap prices in the near term.