Bangladesh: Imported scrap offers rise even as finished steel lag behind

Steel prices in Bangladesh have continued to remain unchanged despite hike in imported scrap prices. Imported scrap trade in containers picked up significantly this week, as over 35,000 t of imported scrap have been confirmed recently by SteelMint.

Around 35,000 t containerised scrap booked

Bangladesh-based steel mills continued to book fresh containerised cargo, as prices moved up significantly.

"I brought 1,000 t of shredded from Belgium at $562/t CFR Chittagong levels, because offers from the UK are too high", said a major steel producer.

SteelMint's assessment for shredded scrap stands at $560-565/t CFR Chittagong, up to $5-10/t w-o-w.

• Around 25,000 t of UK-origin HMS (80:20) scrap in containers was booked at $525/t CFR Bangladesh earlier in the week, as per sources.
  
  
• 10,000 t of UK-origin containerised HMS bundles was booked at $485/t CFR Bangladesh
  
  
• 2,000-3,000 t of plate and structural (P&S) grade scrap was booked at $550/t CFR towards closing of last week.
  
  

Bulk scrap offers up

A major mill has booked a US origin bulk scrap cargo last week. The cargo consisted of HMS 1&2 (80:20) at $510-515/t CFR Chittagong levels. Fresh offers for US bulk HMS are being quoted at $525/t. Adding a bloom to imported scrap prices, Turkish mills have been actively booking bulk cargo. SteelMint assesses US-origin HMS 1&2 (80:20) at $472/t CFR Turkey, up by $4/t on a daily basis.

On the other hand, Japan's most awaited monthly Kanto Tetsugen scrap export tender has concluded today after two months. A total of 10,100 tonnes (t) of scrap was awarded and the average price for H2 scrap stood at JPY 50,983/t ($442/t) FAS, SteelMint learnt from sources. Indication for bulk Japanese H2 scrap offers is at $530/t CFR Chittagong, while buyers' bid price is lower by $20-25/t levels.

Bulk ferrous scrap imports into Bangladesh, which is a major scrap buyer in South Asia, continued to witness an uptrend in CY'21, as per vessel line-up data maintained with SteelMint. The country imported 2.43 million tonnes (mn t) of scrap via the bulk route in CY'21 as against 2.35 mn t in CY'20 (Jan-Dec'20).

Domestic rebar prices yet to pick up: The domestic market was slightly picked up last week with improvement in govt construction activities, however liquidity issue continues to weigh down sentiments. However, rebar offers from major mills have remained firm at BDT 77,000-78,000/t exw Chittagong ($899-910/t), unchanged for the fourth successive week. In the Dhaka market, offers are at BDT 71,000/t ($829/t).