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Bangladesh: Imported scrap prices drop $5/t w-o-w; domestic rebar tags fall on weak demand

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Melting Scrap

BigMint Bureau

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4 Dec 2024, 20:34 IST

Bangladesh: Imported scrap prices drop $5/t w-o-w; domestic rebar tags fall on weak demand

Rebar sales weak despite discounts

Scrap buyers wary amid falling tags

The Bangladeshi imported scrap market remained subdued this week, with limited deals and buyer interest, as offers for shredded from the UK/EU stood at $390/tonne (t) and HMS at $370/t.

In Dhaka and Chattogram, rebar sales continued to be weak despite discounts. Domestic rebar prices in Dhaka stood at BDT 75,000-76,000/t ($627-635/t), while in Chattogram, tags were at around BDT 80,000-81,000/t ($669-677/t).

Additionally, domestic shipyard scrap dropped to 48,500-49,500/t ($406-414/t), while billets declined to 65,000-66,000/t ($544-552/t).

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European-origin containerised shredded dropped by $5/t w-o-w to $383/t, while HMS (80:20) declined by $4/t w-o-w to $370/t.

US-sourced HMS (80:20) bulk prices softened by $2/t w-o-w to $370/t.

Japanese-origin H2 bulk prices dropped by $1/t w-o-w to $360/t CFR Chattogram.

A Chattogram-based mill stated that prices of imported, containerised shredded decreased by $4-5/t as mills adjusted to prevailing market conditions. However, bulk HMS prices are expected to remain range-bound for now.

Market scenario

Buyers adopted a wait-and-watch approach due to falling prices, and utilisation levels remained low. Buyers were interested in sub-$380/t for shredded and below $365/t for HMS.

Offers for containerised scrap including HMS (90:10) from Australia were at $388/t, with bids at $380-382/t. Shredded was offered at $390-392/t, with bids at $385-386/t. Southeast Asian offers included Hong Kong/Malaysia-origin PNS at $406-410/t and Malaysian Busheling at $410-415/t, though no firm bids were reported.

Bulk offers from Japan included H2 at $365-367/t, with bids at $355-360/t, and HS at $390-392/t, with no firm bids. From the US, HMS (80:20) mix was offered at $378-380/t, with bids at $370-372/t, while shredded was offered at $390-392/t, with bids at $380/t.

As per market insiders, bulk offers from the US were scarce, and buyers were not interested at the moment, though $370/t for HMS was considered a workable level. Additionally, H2 scrap from Japan is being avoided due to high freights.

As per a Chattogram-based importer, routine trade activities with Bangladesh continued this week, as market participants remain hopeful for a near-term recovery. Despite ongoing disruptions caused by communal disturbances, Bangladeshi mills remain optimistic about a rebound.

Bangladesh's ship-breaking market faced a downturn this week due to worsening economic conditions and political instability. In Chattogram, only one 7,000 light displacement tonnage (LDT) vessel arrived, with no deliveries, and local recyclers were hesitant to bid due to ongoing riots. While sales of non-HKC and LNG carriers brought some activity, ship recycling prices stayed below $500/LDT.

This year, steel plate prices have dropped by $100/t, and the taka has devalued by over 8.5%. Corruption in domestic banks has reduced dollar reserves, making ship purchases harder and forcing many smaller recyclers to shut down.

Chattogram Port recorded a significant drop in arrivals last week, received only 16,952 LDT compared to 36,386 LDT the previous week.

Outlook

The outlook for Bangladesh's scrap market remains cautious, but stronger demand is expected towards year-end. US-based recyclers are facing tight pricing, although some cargoes were sold at lower levels. Domestic scrap prices in Bangladesh are likely to stay stable or decline slightly in December, with buyers monitoring the market for more favourable conditions ahead.