Bangladesh: Imported scrap prices fall by $10/t w-o-w; slow steel demand dampens buying interest
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- Bid-offer disparities persist, buyers cautious
- Delayed infra projects keep sentiments low
The Bangladeshi imported scrap market has been slow over the past week, with few deals taking place. Imported scrap prices fell by $10/tonne (t) amid LC issues, a weakening currency, and high freight costs, which have made it challenging for buyers who are holding low bid expectations in response to higher offers.
Domestic steel demand remained weak, which made buyers cautious about committing to deep-sea or overseas trades.
Shredded scrap from Australia and Malaysia was offered at $395-400/t CFR, while HMS from Africa, Europe, and Southeast Asia ranged from $350-370/t, with shredded from these regions priced at around $400/t.
Premium grades, such as Malaysian busheling, are priced above $425/t, but there is limited interest.
Shredded scrap offers from the UK/Europe were in the range of $390-395/t CFR Chattogram.
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- Europe-origin containerised shredded dropped by $10/t w-o-w to $390/t, while HMS (80:20) prices declined by $5/t w-o-w to $380/t.
- US-origin HMS (80:20) bulk prices softened by $5/t w-o-w to $375/t.
- Japan-origin H2 bulk prices also dropped by $5/t w-o-w to $365/t CFR Chattogram.
Market scenario
According to market participants, Bangladesh's steel demand has fallen to 50-60% of its H1CY24 levels, and with new infrastructure projects still awaiting approval, the market is expected to remain sluggish in the coming weeks.
A Dhaka-based trader commented, "The market is declining daily. There is some demand-- buyers are bargaining hard but unable to bring down prices. By Saturday, prices may drop further. Hong Kong-origin PNS could reach $415/t, and Blue Steel, $425/t. Brazil-origin HMS 1 was heard at $368-370/t and HMS-2 bundles at $335/t, because of better availability. While Brazil's offers are lower than those of Australia and Europe, quality remains a concern."
A major Australia-based supplier said, "Today, a buyer bid for HMS (90:10) at around $375/t CFR. For Australian-origin scrap, PNS was quoted at $390/t and shredded at $380-385/t CFR Chattogram. However, these prices seem too low, as Indian buyers have also quoted similar levels for shredded and PNS."
Recent deals
- Around 700 t of UAE-origin HMS mix PNS was booked at $400/t CFR Chattogram.
- Approximately 500 t of Hong Kong-origin PNS was booked at $428/t CFR Chattogram.
- Around 1,000 t of Peru-origin PNS was booked at $410/t CFR Chattogram.
- A parcel of 500 t of Hong Kong-origin PNS was purchased at $425/t CFR Chattogram.
- Approximately 1,000 t of Hong Kong-origin AB bundle was purchased at $365/t CFR Chattogram.
- Around 1,000 t of Australia-origin HMS (90:10) was purchased at $372/t CFR Chattogram.
Domestic market: The price of billets was BDT 67,500/t ($565/t), while rebar prices range from BDT 78,000-79,000/t ($653-661/t) (lowest) to the highest reaching BDT 80,000/t ($670/t) for the Dhaka region. Whereas for the Chattogram region, mills like BSRM and AKS offered rebar at BDT 84,000/t ($703/t), with free delivery included as the delivery cost is an additional BDT 2,000/t ($17/t).
Local shipyard scrap prices range from BDT 50,000 to 51,000/t ($418-426/t).
Ship-breaking market faces slowdown amid economic instability
Last week's ship-breaking market in Bangladesh saw mixed trends. Local demand increased slightly, driven by a few buyers with yard capacity and LC limits, but overall activity remained limited, with around 27,000 LDT expected for delivery. Steel plate prices fell by $8/t, and the Bangladeshi taka remained volatile at historic lows. Economic instability, limited financing, and rising non-performing loans continued to hinder recovery. Total tonnage received at Chattogram Port dropped to 26,660 LDT from 27,420 LDT the previous week.
Outlook
The market outlook remains cautious, with expectations of further price declines keeping most buyers on the sidelines. Major steel mills are refraining from new purchases due to sufficient stock and ongoing weak demand. The delay in key infrastructure projects is adding to the uncertainty for the near term.
