Bangladesh: Imported scrap market extends silence amid gloomy sentiments

The imported ferrous scrap trade in Bangladesh is still not improving despite recent Turkish deals having pulled up prices. The entire steel sector is grappling with challenges in the form of rising production costs, power shortages, and restraints on LC opening. Hence, the extended silence. No buyer is accepting any offers since they cannot open an LC. There are a few word-of-mouth offers in the market but mostly everyone is sitting idle at present.

Turkiye's ferrous scrap prices are almost stable in a recently-concluded deal, as per sources. A West Black Sea region mill booked a UK-origin bulk scrap cargo, comprising 35,000 t of HMS (80:20) at $384/t CFR Turkiye, SteelMint learnt from sources. The cargo was booked for December shipments.

Containerised scrap offers up w-o-w

• Containerized offers for UK-origin shredded scrap are set at $465/t CFR, significantly up by $15 /t w-o-w.
  
  
• Meanwhile, containerized UK-origin HMS 1&2 (80:20) are at $435/t CFR Chittagong, up by $11/t w-o-w
  
  
• Local scrap is currently being traded at BDT 61,500/t ex-yards, unchanged w-o-w.
  
  

Bulk scrap offers marginally up
The market for imported bulk scrap was mainly quiet with buyers silent amid gloomy sentiments. Traders and steelmakers continue facing delays in LC openings.

• Indicative offers for Japanese H2 are at $415-20/t CFR, moving up over $15/t w-o-w after the recently-concluded Kanto tender. However, volumes are lower, at around 13,000 t, out of which Vietnamese buyers booked 10,000 t and the rest were taken by buyers from Taiwan.
  
  
• Furthermore, US-origin bulk scrap offers are now being quoted at $428/t CFR level, up by $18-19/ w-o-w.
  
  

"In Bangladesh, there will be an LC crisis. The mills' scrap inventories will start to run out after another three months," informed a market participant from Bangladesh.

Cement sector faces challenges: According to Bangladesh Cement Manufacturers Association (BCMA)., the country's dollar reserves are declining, which is making it difficult for the cement sector to acquire raw materials. Currently, over 35 domestic and international companies manufacture cement in the nation. The president of the BCMA stated at a news conference held yesterday in Dhaka that "the cement makers are now encountering enormous challenges when opening new LCs".

Domestic market extends silence:
The domestic finished steel market remained sluggish as a result of liquidity issues.

SteelMint-assessed domestic rebar prices are at BDT 91,000 /t ($881/t) exw-Chittagong. However, the medium secondary mills in Dhaka have kept their rebar offers at BDT 85,000/t ($825/t), unchanged w-o-w.