Bangladesh: Imported scrap prices range-bound; bookings likely to improve
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Imported scrap trades in Bangladesh have slowed down due to the price gap between bids and offers. However, market participants expect imported scrap bookings to pick up in a week's time, considering no active bookings in the last one week.
Bulk offers for Bangladesh up by $5 w-o-w - Japanese bulk scrap offers for Bangladesh have increased by $5/t w-o-w, after monthly Kanto tender was concluded at an average of JPY 28,406/t FAS on 9th Oct. Bids in Kanto tender for Oct'20 fell by $9 m-o-m, however, bids were higher by JPY 1,000-1,500/t ($10-14) than prevailing offers.
- Currently, Japanese H2 scrap offers stand at $310/t CFR Chittagong, sources reported to SteelMint.
- While for US-origin scrap, buyers are bidding at $310/t CFR and $315/t CFR for HMS 1&2 (80:20) and shredded respectively, for November bulk cargo bookings.
Imported scrap offers in containers remain firm w-o-w - Imported scrap offers to Bangladesh remained mostly stable as compared to last week, however, these offers were not being accepted by the buyers, hence no recent bookings were reported.
- Offers stand at around $315-320/t CFR Chittagong level for containerised UK/Europe origin shredded.
- Australian origin shredded and HMS 1&2 (80:20) is being offered at $315/t and $310/t CFR Chittagong level respectively.
- Offers for HMS 1&2 (80:20) mostly suppliers asking $305-310/t CFR, while buyers price idea stands below $300/t CFR level.
- SteelMint's assessment of containerized shredded 211 scrap from UK/Europe origins stands at $320/t CFR Chittagong, stable w-o-w.
"So far Bangladesh buyers are resisting as local finished prices are not improving however with renewed interest in Pakistan and Turkey, buying may slowly resume" shared a global trader.
Bangladesh's domestic market overview- Domestic scrap prices have moved up by BDT 500/t w-o-w. Local melting scrap prices currently stand at BDT 31,000-31,500/t ex yard basis. Rebar prices of major mills have remained stable on weekly basis at BDT 56,500/t ex-Chittagong basis.
