Bangladesh: Imported scrap prices fall in container deals, bulk market quiet

Bangladesh's imported scrap market gained a slight momentum this week with a few deals for containers reported.Even though market players seem to be active post-the Muharram holidays that ended last week, subdued finished steel sales kept market sentiments bearish to a certain extent.

"The imported scrap market is dull currently amidst subdued finished steel sales, extended monsoon and particularly because buyers are waiting for a price correction in imported scrap," said an official from a Bangladesh-based steel mill.

Imported containerised scrap offers and deals

• In a recent deal, 2,000 tonnes (t) of UK/EU-origin shredded was sold at $530-535/t CFR. However, offers were heard to be at $535-540/t CFR levels. SteelMint's assessment stands at $538/t CFR, down by $10-15/t w-o-w.
  
  
• Around 11,000 t of HMS 1&2 (80:20) from UK/Australia were sold by a trader at $500/t CFR.
  
  
• SteelMint's price assessment for UK/EU-origin HMS (80:20) stands at $505-510/t CFR Chittagong and that for shredded at $535/t CFR Chittagong, down by $10/t w-o-w.
  
  

No bulk scrap import deals amidst bid-offer disparity:

Bangladesh's bulk scrap import market remained inactive due to low buying interest, SteelMint learnt from sources. US-origin shredded scrap offers stand at $550/t CFR Chittagong. On the other hand, Bangladeshi steel mills bid lower by $20/t as against current offers. Due to the bid-offer disparity, the market is silent at present.

Domestic rebar sales subdued: Bangladesh's domestic steel market remained less active, after last week's Muharram holidays, SteelMint understands. Major mills kept their rebar offers unchanged at BDT 72,000-73,000/t exy-Chittagong. Dhaka-based mills too kept rebar prices firm at BDT 68,000-70,000/t exy. The market saw a liquidity crisis and demand is also on the lower side due to the ongoing rainy season.

Outlook
Market participants expect steel demand to pick up in Sept'21 by when sentiments may improved