Bangladesh Imported Scrap Offers Up; Limited Trades Reported

In conversation with market participants, SteelMint learned that imported scrap offers to Bangladesh witnessed further price hike this week, on account of last week's strong buying activity in Turkey at further increased prices supported by the US Tariff cuts on finished steel imports from Turkey. Availability of offers remained low from suppliers' end, while only few deals were reported with the ongoing week being the last working week before Eid holidays keeping the buying interest limited.

SteelMint's price assessment for containerized Shredded scrap from UK stands in the range of USD 350/MT, CFR Chittagong, rising by USD 10/MT against the last week's report, with few deals concluding in this range amid limited offers and slow buying. Few leading suppliers from UK were also reported to offer shredded scrap in the range of USD 355/MT, CFR.

Offers for HMS 1 in 20ft containers from South America also witnessed an increase by USD 8-10/MT against last week, as Brazil origin HMS 1 price was assessed in the range of USD 340/MT, CFR Chittagong. Offers for P&S scrap in containers from Brazil currently reported in the range of USD 350/MT CFR.

Meanwhile, local market sentiments are likely to strengthen from 12th June onwards when the market resumes post Eid holidays. Finished steel trade, which has remained below average for quite a few weeks amid Ramadan slowdown, is expected to improve with increased demand from the pre-monsoon construction activities, while steelmakers keep an eye on upcoming National Budget during mid-June'19.

Local scrap prices stabilize - Local shipyard scrap prices showed stability after declining for 4 consecutive weeks and currently remain in the range of BDT 33,500-34,000/MT (USD 396-401) similar to last week's report.

Ship plate prices in Chittagong's market declined by around BDT 1000/MT on a weekly basis with local 16 mm & 12 mm ship plates' offers reported at around BDT 42,300-42,500/MT (USD 500-502) and 41,300-41,500/MT (USD 488-490) respectively ex-works Chittagong, inclusive of local taxes. Shipbreaking demand continues to remain low due to large bookings made last month, driving the prices further below.