Bangladesh: Imported Scrap Offers Rise Sharply Following Global Hike

In conversation with market participants, SteelMint learned that imported scrap market in Bangladesh has moved up sharply in terms of prices, however, limited trades are being reported currently as steelmakers are seeking further clarity on global prices. Sentiments in the local market have turned dull post implementation of the new tax regime in the budget from new financial year July 1st.

SteelMint's assessment for containerized Shredded scrap from Europe and North America stands at around USD 335-337/MT, CFR Chittagong, rising significantly by USD 5-10/MT against the last week's report of USD 325-330/MT, CFR levels. The demand remained slow after last week's active buying when steelmakers had booked in healthy quantity at lowered prices. Few suppliers were quoting USD 340/MT, CFR on global strengthening of sentiments but deals were reported to conclude at the lower side of the range as buyers are targeting USD 333-335/MT, CFR range.

Containerized HMS offers were also reported to increase against last week, with South American origin HMS 1 being assessed at USD 322-325/MT, CFR Chittagong, up 5-7 USD/MT against last week. Inferior grade HMS 1&2 from Europe & Australia is assessed at USD 315-318/MT. Few offers for P&S scrap offers from Brazil remain at USD 335/MT CFR amid very limited demand

Bangladesh domestic steel market remains dull - Even as a couple of weeks have passed post the Budget announcement last month, the country's market is still understanding the impact of new tax regime, while dull sentiments persist with low demand for finished steel. Concerns over price hike of finished steel remain, however currently the prices remain stable.

Local shipyard scrap remained more or less stable with prices rising slightly by around BDT 500/MT on weekly basis and currently standing at BDT 34,500-35,000/MT (USD 408-414), as against BDT 35,500/MT reported last week. Ship plate prices in Chittagong's market remained in similar range as last week with local (16 mm & 12 mm) ship plates' offers reported at around BDT 43,300-43,500/MT (USD 513-515) and BDT 42,300-42,500/MT (USD 501-503) respectively ex-works inclusive of local taxes.