Bangladesh: Imported Scrap Offers Down; National Budget Awaited

In conversation with market participants, SteelMint learned that imported scrap offers to Bangladesh have weakened on account of further softening of prices at the global level. As the market players are returning from Ramadan festival, increased buying at corrected prices is expected in the coming days, with most steelmakers going for restocking.

SteelMint's price assessment for containerized Shredded scrap from the USA, UK and Europe stands in the range of USD 338-340/MT, CFR Chittagong, down by USD 8-10/MT against the last week's report, with decent deals being concluded at the said price range. Leading suppliers from Europe are reported to offer at a premium of USD 2-3/MT CFR.

Offers for HMS in containers (20 ft) from South America were reported to decline by USD 12/MT against the Pre-Eid holidays offers, with Brazil origin HMS 1 price being assessed in the range of USD 325-327/MT, CFR Chittagong, while Bulk cargo offers for HMS were heard in the USD 320-325/MT range. Offers for P&S scrap in containers from Australia currently reported in the range of USD 350-353/MT range CFR.

Few inquiries for bulk scrap were heard from few leading steel mills, however deals are yet to be concluded.

The local market has still not become fully operational post the Eid holidays while Steel mills are keeping an eye on the country's upcoming budget to be presented tomorrow, 13th June 19 and its impacts on the Steel sector. With the expectation of increased demand amid new projects likely to be announced along with the likelihood of a strong budget from the stable government, the industry is keeping an overall positive outlook for the steel sector.