Bangladesh: Imported ferrous scrap prices fall marginally on moderate trade

In Bangladesh, the imported ferrous scrap market saw moderate activity following a busier last week. Containerised shredded scrap from UK and European sources experienced a nominal $1/t decrease w-o-w, while HMS (80:20) offers remained stable at $412-415/t CFR Chattogram.

Several containerised deals, totalling approximately 12,000-15,000 t, were closed last week, involving various grades and origins such as Singapore, the US, Australia, and Europe. Japanese H2 scrap offers were in the range of $425-428/t, while US-origin HMS (80:20) bulk indicatives ranged from $432-435/t, with buyer inquiries around $426-428/t CFR Chattogram.

BigMint's assessment for Europe-origin shredded scrap (containers) saw a $1/t decrease to $434/t, while HMS (80:20) containers dropped by $3/t w-o-w to $412/t.

On a monthly basis, Bangladeshi buyers typically procure around 16-20 bulk vessels from regions like the US, Europe, and Australia, as per market insiders. However, only 4 to 5 bulk vessels have been booked so far, representing about 30-35% of total requirements.

According to a major trading house in Bangladesh, bookings for January and February are picking up due to improved LC approvals and a shortage of scrap in domestic mills.

An official from a steel mill noted ongoing inquiries for Singapore and Malaysia, but quoted prices are higher at $445-448/t for PNS and HMS (90:10) on a CFR basis.

HMS (80:20) offers from the US were heard at $405-410/t CFR, and HMS/PNS mix from the Middle East was priced at $420-425/t CFR. HMS (90:10) scraps in 20ft containers from Canada were offered at $420/t CFR, although bids were around $408/t CFR levels.

Recent deals:

• Around 2000 t of Australia-origin Shredded were booked at $430/t CFR Chattogram.
  
  
• Approximately 1000 t of Australian-origin PNS scrap were sold at $443/t CFR Chattogram.
  
  
• A parcel of approximately 1000 t of PNS scrap from Singapore was booked at $446/t CFR.
  
  
• Around 1000 t of Europe-origin shredded scrap were booked at $436/t CFR Chattogram.
  
  
• Around 3000 t of Australia-origin Shredded were booked at $432/t CFR Chattogram.
  
  
• Around 2000 t of US-origin HMS (80:20) were booked at $410/t CFR Chattogram.
  
  
• Around 6000 t of Australia-origin HMS(80:20) were booked at $417/t CFR Chattogram.
  
  

Domestic market: In the domestic market, billet prices were assessed at BDT 76,000-77,000/t ($681-692/t), while shipyard scraps were being offered at BDT 66,000-67,000/t ($592-602/t), and PNS quality scraps stood at BDT 69,000-70,000/t ($620-628/t). Domestic rebar prices were at BDT 87,000-94,000/t ($784-857/t) across Dhaka and Chattogram.

The Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) has urged for a 50% depreciation facility on imported reconditioned cars, an increase from the existing 30%. This request was made during a pre-budget discussion with the National Board of Revenue (NBR) at the NBR Bhaban in Agargaon, Dhaka.

Outlook: According to industry experts, there may be a slight fluctuation in imported scrap offers and bids in the near future. However, continuous bookings are anticipated, driven by increased demand from domestic mills. This demand is expected to keep prices stable or possibly push them slightly higher, especially if suppliers encounter collection constraints.