Bangladesh: Imported scrap market uncertain as buyers await budget announcement

Imported scrap prices in Bangladesh remained range-bound week-on-week (w-o-w). Market participants were exercising caution when it comes to new bookings due to uncertainty in price trends. The persisting problem of LC opening for small-scale buyers, coupled with cash flow issues, adds to their concerns. Moreover, slow demand from domestic end users has been a significant factor leading to low scrap demand in the country.

The upcoming monsoon has also contributed to a silence among buyers, as they await the most anticipated event of June--the general budget for FY'23-24.

Fresh offers and deal

Indicative offers for US-origin bulk are at $405/t CFR, down by $13/t w-o-w.
Japanese-origin H2 material was assessed at $410/t, slightly up by $10/t w-o-w.

The market is eagerly waiting for more clarity, as limited offers are being pitched to the buyers. In the meantime, they are exploring alternative sources such as Brazil, Chile, Australia, and Hong Kong. Participants remain cautious due to the declining foreign currency reserves of the country.

SteelMint's assessment for UK-origin shredded are at $460-465/t CFR Chattogram, slightly up by $3-5/t w-o-w.

However, in a recent transaction around 500 t of HMS(90:10) has been booked at $420/t on a CFR Chattogram basis.

Domestic demand sluggish

On the domestic front, demand for local rebar and ship-breaking scrap continues to be sluggish. Clarity is lacking in terms of fresh offers for rebar, with Chittagong-based steel mills quoting around BDT 95,000/t exw, unchanged w-o-w. Meanwhile, Dhaka-based mills have offered fresh quotes at BDT 85,000/t exw, slightly down by BDT 3000/t w-o-w.

Local ship-breaking scrap prices remain unchanged w-o-w, standing at BDT 60,000/t exy.