Bangladesh: Imported scrap market quiet; offers firm during holidays

Bangladesh's imported scrap market was largely stable this week, with no major changes recorded in offers. Imported scrap offers remain unchanged this week due to the absence of major suppliers during the winter holidays. The major mills were quiet and opted to watch the market carefully for a clearer price direction.

Interestingly, offers from the US and UK/European countries are largely absent due to the holidays. Fresh offers are likely to be quoted from the second week of January.

Meanwhile, buyers are looking to secure material from other origins at favourable prices. However, banks are yet to release LC opening restrictions in full.

Offers and deals-

• Containerised offers for UK-origin shredded scrap are at $455-460/t CFR, largely stable w-o-w.
  
  
• Around 3,000 t of Brazilian HMS was booked at $435/t CFR last week.
  
  

"There were no new bookings this week," said a bulk scrap trader. The market situation is not hopeful at all due to global market trends, he added.

Bulk scrap buyers are mostly silent due to LC opening restrictions and liquidity issues. Imported bulk offers were high before the holidays owing to active bulk cargo bookings from Turkish mills in anticipation of inventory replenishment before the holidays.

As a result of low scrap generation during the holidays and labour shortage, offers are likely to remain high after the market reopens.

No firm offers were heard for bulk cargoes this week.

"Overseas markets are now in holiday mood, and mostly yards are closed," said another trader.

Domestic market follows global cue

The domestic finished steel market sentiments are the same as last week. Major players kept their rebar prices unchanged for the week.

SteelMint assessed domestic rebar prices at BDT 91,000-94,000/t ($859-887/t) exw-Chittagong. The Dhaka based mills have kept their rebar offers unchanged w-o-w at BDT 85,000/t ($802/t).

Local scrap prices hover at high levels due to shortage of material. Currently, local scrap is being traded at BDT 62,500/t ex-yard, unchanged w-o-w.