Bangladesh: Imported Scrap Prices Edge Down, Ship Breaking Volumes Drop 38% in Nov'18
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SteelMint learned in recent conversations with industry participants that Bangladesh imported scrap market turned weak amid approaching general elections and slow sentiments in country's local finish steel market. Scrap prices edged down in recent trades concluded this week.
Shredded scrap sold at around USD 355/MT, CFR Chittagong and offers for containerized Shredded from Europe and USA stand mostly in the range USD 350-355/MT, CFR as against last weeks' report in the range of USD 355-360/MT, CFR Chittagong.
In a recent deal heard, 2000 MT of Australian origin Shredded scrap sold at around USD 352/MT, CFR Chittagong.
Limited offers are available for USA and European origin scrap on tight availability. P&S scrap offers from other origins stand at around USD 345-350/MT, CFR as against USD 360-365/MT levels last week.
Following which HMS 1&2 scrap offers also have corrected slightly this week. HMS 1&2 now is being offered in the range USD 325-335/MT, CFR from Chile, Brazil and other origins depending on quality. Around 1000 MT containerized HMS 1&2 booked from South America at around USD 323-325/MT for end Jan-Feb shipment.
Ship breaking volumes fall 38% in Nov'18 - As per reports data maintained with SteelMint, Bangladesh observed fall in ship breaking volumes by 38% M-o-M in Nov'18. Ship breaking volume at Chittagong market stood at 119,863 LDT in Nov'18 as against 193,369 LDT recorded in Oct'18. The country remained the most preferred market for ship recycling activities so far in Q4-CY18 despite slow finish steel demand and an inability of buyers to open new LC's. However, shortage of USD strains the credit lines for most of the bank and local recyclers in the country.
Bangladesh imported total 128,552 MT bulk ferrous scrap in Nov'18, up 46% M-o-M as against 88,178 MT bulk ferrous scrap in Oct'18.
Domestic ship breaking scrap and local scrap prices stand stable around BDT 35,000/MT and at around BDT 35,500/MT, ex-works inclusive of taxes respectively. While assessment for Ship cutting plate prices has moved down by BDT 400-500/MT to BDT 41,000-41,200/MT for 16 mm, at around BDT 40,000-40,200/MT for 12 mm and at around BDT 42,000-42,200/MT for plate thickness 20 mm & above.
Ship breaking prices stand unchanged - The assessment for ship cutting price stand unchanged on a W-o-W basis at USD 420/LDT for general dry bulk cargo, at USD 430/LDT for tanker cargo and at USD 440/LDT for containers on CNF Bangladesh basis. The market observed two containers sold comprising around 15,000 LDT and one PCTC of 13,826 MT concluded last week at slightly higher prices. These sales could have concluded as buyers were looking to fill their plots before the elections on 30th of this month.
