Bangladesh: Imported Scrap Prices Fall on Slow Trades

Imported scrap offers to Bangladesh have slightly moved down on limited trades being reported since the last few weeks as well as stability in global offers, SteelMint learned from market participants. Shredded scrap trades may pick up slightly in the coming days as new offers stabilize, while subdued demand for steel and inventories at hand will keep the domestic market slow for the short term.

SteelMint's' price assessment for Shredded scrap moved down swiftly by over USD 10/MT W-o-W and currently standing in the range USD 292-295/MT, CFR Chittagong as against the last week's report of USD 303-305/MT, CFR. Later in the previous week, very limited trades for containerized Shredded were reported at around USD 301-302/MT, CFR Chittagong, while no major bookings have yet been observed at freshly decreased offers.

Trades for HMS scrap remained relatively more preferable than shredded. Few deals for HMS 1 from Brazil and other south American origins were recorded at around USD 282-283/MT, while offers now stand at around USD 280/MT CFR. Australian origin HMS 1 is still being offered at around USD 285/MT and above, while few mills are bidding for HMS 1&2 (80:20) at around USD 273-275/MT CFR.

P&S scrap offers from Brazil have now come down to USD 300/MT CFR Chittagong, following the overall downturn.

Local scrap Trades Improve - Following the improved trades in the recent weeks, local shipyard scrap prices have inched up after falling sharply to BDT 27,500/MT levels earlier this month. Currently, the offers for shipyard scrap are hovering around 30,000/MT (USD 354) ex Chittagong, however, with the ongoing fall in the imported scrap prices, along with the slow domestic steel market, the local scrap prices are unlikely to remain supported in the coming weeks.