Bangladesh: Imported Scrap Market Remains Subdued Amid High Offers

Over limited and high offers importers in Bangladesh remained out of the market this week, Buyers are choosing local scrap which is cheaper than imported for the moment.

Imported scrap price assessment for Bangladesh remained unmoved at high levels again this week. Very few offers are available from Europe and US origin as most of the suppliers are holding offers at present. Moreover, on account of holiday season, scrap yards remain closed and likely to reopen actively next week.

Current assessment for US and Australia origin Shredded 211 in containers is around USD 390-395/MT, CFR Bangladesh. Thus, assessment for Shredded scrap remained unchanged on W-o-W basis to Bangladesh.

Offers for containerized HMS 1&2(80:20) are assessed around USD 365-370/MT, CFR. Offers for P&S from Brazil assessed in the range of USD 385-390/MT, CFR.

"Market for imported scrap in Bangladesh is subdued as local scrap is cheaper. Local scrap is available in 34000 Taka (USD 408) whereas imported offers are above USD 390/MT for Shredded 211 on CFR Chittagong basis, added to which hiked freight rates and extended delivery period resulted in buyers to choose local scrap for the moment" - a source shared

Domestic scrap prices are expected to increase further following global price trend now - expressed a market participant. Hike in domestic scrap prices will force buyers to turn again towards imported scrap.

Prices for ship breaking remained unchanged on W-o-W basis in Bangladesh. Despite which, the market was seen less competitive and witnessed no sale again in Bangladesh. The prices assessed for shipbreaking were at USD 420/LDT for general dry bulk cargo, USD 430/LDT for tanker cargo and USD 440/LDT for containers respectively on CNF Bangladesh basis.