Bangladesh: Imported Scrap Offers Move Up, Limited Trades Reported

SteelMint learned in recent conversations with industry participants that imported scrap market in Bangladesh has moved up in terms of prices, however, not many trades are happening right now seeking more clarity on global prices. The demand remained slow after aggressively booking a large volume of scrap during the 2nd-3rd week of this month.

According to sources, asking rates for containerized Shredded scrap are being reported in the stable range of USD 340-345/MT, CFR Chittagong from suppliers in Europe, UK and USA. However, no major trade has been reported so far in the market. SteelMints' price assessment for Shredded moved up by USD 10/MT W-o-W as against the last weeks' report of USD 330-335/MT, CFR.

European origin P&S scrap climbed up at around USD 350/MT, CFR Chittagong.

HMS scrap prices move up USD 10-15/MT - HMS 1 from Chile and Brazil is being offered majorly at around USD 335-340/MT, CFR. While HMS 1&2 from South Africa traded in containers at around USD 330/MT, CFR Chittagong.

European scrap export prices recover sharply - European HMS scrap export market has recovered this week after falling steadily since early Nov'18. Offers to key importers as Turkey and Indian subcontinent jumped on low end amid steady demand from the major domestic Shredders. Price assessment of HMS 1&2 (80:20) from Europe and UK origin stands at around USD 320-325/MT, CFR up USD 10-15/MT.

Domestic scrap prices remain stable - Local shipyard scrap prices in Bangladesh stabilized this week and prices reported steady in the range BDT 37,000-37,500/MT, (USD 443-449) ex-works inclusive of local taxes.

Ship cutting plate prices fall on increasing supply - Ship cutting plate prices declined by BDT 600-800/MT on a W-o-W basis and assessed at around BDT 41,600-41,800/MT for 16 mm and BDT 42,500-42,700/MT for above 20 mm thickness. Ship breaking market observed filling up of local yards as it remained at the top market in terms of prices however, participants remain uncertain about how long it can sustain and until when demand starts to diminish again putting downward pressure on the prices.

As per vessel line up data maintained with SteelMint, three vessels carrying around 107,618 MT scrap have arrived at 'berth position' so far in Jan'19 in Bangladeshi port while two vessels comprising around 64,403 MT are at 'anchorage position' and another vessel of 33,670 MT is the at 'expected position' at the Chittagong port.

Turkish steel mills have continued buying scrap at higher levels while expectations are firm to observe uptrend next month, resulting in increased imported scrap prices in Asian countries.