Bangladesh: Imported ferrous scrap prices see mixed trend; mills cautious amid dull steel demand

• Bulk negotiations stall as suppliers focus on Turkish market
  
  
• Imported containerised scrap market slow amid soft rebar sentiments
  
  

In Bangladesh, the imported ferrous scrap market witnessed mixed trends w-o-w. Steel demand remained below expectations, major sales remained slow as steelmakers were on the sidelines, not procuring high-priced raw materials as finished steel is not performing well.

BigMint's assessment for Europe-origin containerised shredded scrap remain stable w-o-w at $423/t, while HMS (80:20) offers increased to $405-406/t CFR Chattogram, up $3/t w-o-w.

Approximately 3,500-4,000 t of containerised deals were closed over the last seven days involving various grades and origins, such as Chile, UAE, Hong Kong, and other origins.

A source at a leading trading house informed BigMint that negotiations with US scrap yards for bulk bookings are ongoing, but chances of deals are slim due to bid-offer discrepancies. Suppliers appear to be favouring the requirements of Turkish mills.

As per market participants, bulk offers in HMS were heard at 405-407/t from the US, yet workable levels from buyers were heard to be around $397-400/t, and bulk HMS from Australia was heard at 405-410/t CFR Chattogram.

BigMint's weekly assessment for US-origin HMS (80:20) bulk scrap prices witnessed a $2/t increase w-o-w to $400/t CFR Chattogram.

Japanese H2 scrap offers were in the range of $393-396/t, while buyer enquiries were at around $388-390/t CFR.

BigMint's weekly assessment for Japan-origin H2 bulk scrap prices witnessed a $4/t increase w-o-w to $395/t CFR Chattogram.

A major steel mill representative stated, "We are taking a cautious approach to procurement as we have completed our major bookings in bulk vessels for May and June shipments. To avoid excess inventory at year-end in June, we are adopting a wait-and-see approach."

Recent deals

• Around 1,500 t of HMS(90:10) from Chile were booked at $392/t on a CFR Chattogram basis.
  
  
• Approximately 1,000 t of PNS from UAE was sold at $425/t on a CFR Chattogram basis.
  
  
• A parcel of 500 t Hong Kong-origin H-beam was sold at $455/t on a CFR Chattogram basis.
  
  
• Around 500 t of Busheling from South Korea were sold at $435/t on a CFR Chattogram basis.
  
  

Domestic market: In the local market, rebar prices stood at BDT 86,000-88,000/t (equivalent to $783-801/t) exw-Dhaka, and BDT 92,000-93,500/t (equivalent to $838-851/t) ex-Chattogram. Billets are at BDT 76,000-77,000/t (equivalent to $692-701) exw. Ship-breaking scrap prices locally are between BDT 55,000-56,500/t (equivalent to $501-515/t).

Container handling rises in Chattogram Port: Chattogram Port handled a higher volume of containers and cargoes in the first nine months of fiscal year 2023-24, with over 8.27% growth in container handling compared to the same period last year. The port managed 23.38 lakh TEUs (twenty-foot equivalent units) between July 2023 and March 2024, up from 21.60 lakh TEUs in the previous fiscal. Overall cargo handling, including containerised and bulk cargoes increased by 4.38%, with the port processing 9.16 crore tonnes of cargo compared to 8.78 crore tonnes last year. Despite this growth, business leaders caution that the country's foreign trade has not yet fully rebounded.

The Chittagong Chamber of Commerce and Industry (CCCI) said it is too soon to confirm a full recovery in foreign trade, but the increased cargo handling at the port is a positive sign of rising import trade.

Outlook: In the short term, imported scrap prices are expected to remain range-bound in the bulk scrap procurement category due to nominal inventory availability with major mills. A firm domestic scrap market may urge suppliers to keep offers higher but buyers' acceptance is likely to be low.