Bangladesh: Imported scrap offers move down

Imported scrap offers to Bangladesh moved down significantly in contrast with the last week. Few major bulk cargo bookings were concluded from USA and Japan earlier in the week at a decreased price while buying in containers turned slow in comparison to last week.

SteelMint's assessment for shredded scrap in containers from UK/ Europe and Canada being offered at $290/t CFR Chittagong, down by $10/t against last week's report, while buyers bids stand quite lower at $280/t CFR, with no major trades of shredded from these origins getting concluded. On the other hand, Brazil origin shredded was quoted at $270/t CFR, with some activity.

Meanwhile in bulk, from the USA west coast, shredded scrap offered at around $280/t CFR, after a major mill from Chittagong booked a 37k t bulk cargo of mixed grade earlier this week at $280/t and 275/t for shredded and HMS respectively CFR.

HMS scrap have witnessed less decline in terms of offers. Australian origin HMS 1&2 (80:20) was offered to Bangladesh at around $270/t CFR, while for HMS 1&2 (90:10) offers were reported at $275 from the same origin. However, buyers bids for HMS 1&2 (80:20) & (90:10) are at $260/t and $265/t CFR respectively. Additionally, for HMS 1&2 (80:20) from Brazil, offers were recorded at $260/t CFR.

Few offers for P&S were in the market, with Australian origin P&S standing at $300/t CFR while Brazilian P&S scrap being offered at $295/t CFR Chittagong.

A reliable source confided that "one steelmaker in Chittagong was in process of booking shredded in containers at $290/t this week, but cancelled their LC on the expectation that price will go down further."

"All the 3-4 major mills have excess inventory due to low production in presently resulting in low scrap consumption, however, bulk bookings have started again on an as per need basis given favourable price" Shared a Chittagong based steel manufacturer.

Domestic Market:

Local shipyard scrap prices continued its decline, as forecasted earlier by SteelMint, due to sharp plummet in scrapped vessel prices. Shipyard scrap currently stand in the range of BDT 27,500-28,000/t ex Chittagong (inclusive of all taxes) against BDT 28,500-29,000/t reported last week and the market expects prices to move down further.

Dhaka based Steel mills shared that currently TMT prices have fallen considerably this month, on low demand, and for medium mills are presently standing at BDT 51,500/t ex plant inclusive of taxes, while Billet is being offered at BDT 41,000/t ex plant by medium mills.