Bangladesh: Imported scrap inquiries from mills increase as lockdown lifts

Bangladesh's steel market has regained momentum after mills resumed operations after the lockdown restrictions which had lasted for one month, were lifted yesterday (10 Aug'21).

Inquiries for bulk cargoes increase: With the resumption of market activities, inquiries for bulk scrap cargoes increased slightly. However, no recent deals were concluded. Last week, two bulk cargoes were booked from Australia and the US respectively.

"This week, no bulk scrap deal has been concluded as yet. Negotiations with major mills are going on but no confirmed deal has been heard. Buyers are slowly increasing their inquiries for container scrap as well," said a bulk scrap trader.

• Indicative offers for Japanese H2 were heard at around $545-550/tonne (t) CFR levels. Offers were mostly stable against last week, while dropping significantly by around $50/t on global price decline as compared to the price reported one month ago.
  Market insiders are waiting for Japan's monthly Kanto Tetsugen scrap export tender which has been re-scheduled for 19 Aug'21 against the usual 9-12th of every month, due to the Olympics in Tokyo.
  
  
• Meanwhile, US-origin bulk shredded offers are being quoted at $545/t CFR.
  
  

Container scrap market gains momentum: Containerised imported scrap offers remain on the higher side. "Seller wants to sell at high prices but buyers are not ready to accept at these levels, as now everyone is too conscious of the present market conditions," a source observed to SteelMint.

• Around 3,000 t of UK shredded have been booked by a prominent steel mill at $550/t CFR Chittagong towards last weekend.
  
  
• Fresh offers for shredded are now being cited at around $545-550/t CFR Chittagong.Offers dropped by $10-15/t w-o-w.
  
  
• A 2,000-t container of HMS 1&2 (80:20) has been sold by a prominent trader at $508/t from different origins.
  
  
• Furthermore, around 5,000 t of HMS 1&2 (80:20) have been booked at around $512-515/t CFR towards last weekend.
  
  
• UK-origin HMS 1&2 (80:20) are now being quoted at $505-510/t CFR.
  
  

Indian sponge iron export bookings resume for Bangladesh: Indian sponge iron export prices dropped in recent deals. Around 2,000 t of sponge iron have been booked from India this week at around $460/t CPT Benapole against $485/t, as per SteelMint's previous assessment.

Domestic rebar offers inch up: The domestic market has resumed after the strict lockdown, SteelMint learned from sources. Major mills have increased their rebar offers slightly by BDT 2,000/t to BDT 71,000-74,000/t exy-Chittagong. Following the trend,Dhaka-based mills too increased rebar prices slightly to BDT 69,000-70,000/t exy. Though the ongoing monsoon has impacted sales at present,market participants are hopeful of seeing an improvement in market sentiments in the near term.