Bangladesh: Imported Scrap Offers Stable; Local Scrap Prices Edge Up

The gap between imported and domestic scrap has widened further witnessing increased deals for imported scrap.

SteelMint learned in recent conversations with industry participants that imported scrap market in Bangladesh has observed considerable volumes getting booked at corrected prices in the last two weeks' time. Finish steel prices in the local market continued uptrend amid construction projects gaining momentum in the country, post elections.

Latest containerized Shredded scrap offers heard in the range USD 330-334/MT, CFR Chittagong from suppliers in the UK, USA and Canada. While Shredded 211 scrap from Australia and Europe is being offered at around USD 330/MT, CFR Chittagong.

SteelMints' price assessment for Shredded stands almost stable against the last weeks' report. On the other hand, HMS 1 from Chile and Brazil is now being offered in the range USD 318-320/MT, CFR.

HMS scrap prices fell further by USD 5-10/MT on a weekly basis in recent trades reported. Price assessment of HMS 1&2 (80:20) from Europe and UK origin stands at around USD 310-315/MT, CFR on bearish outlook.

Offers for HMS 1&2 from South America and Brazil is being reported in the range USD 310-320/MT, CFR Chittagong for March shipment.

Local scrap prices rise by USD 5-10/MT on tight availability - Local HMS scrap prices stand in the range BDT 36,000-36,500/MT, (USD 429-435) ex-works inclusive of local taxes.

Ship cutting plate prices increased by BDT 200-300/MT W-o-W and assessed at around BDT 42,500/MT for 16 mm and BDT 43,300-43,500/MT above 20 mm thickness.

Indian sponge iron export offers to Bangladesh continued to remain weak due to competitive imported scrap prices in Bangladesh. Prices are hovering at around USD 335-340/MT, CFR Chittagong.

Construction work at Mirsarai Economic Zone gains speed - Bangladesh's first multi-sector economic zone and the largest industrial enclave, Mirsarai Economic Zone (MEZ) is being developed on a contiguous 30,000 acres of land. According to reports, currently its development work has been allotted BDT 4000 crore by the government and an investment proposal of 12 Billion dollars from different enterprises had received earlier. The construction activities at MEZ are going on at the full swing observing firming up of steel prices every next day in the country.