Bangladesh: Imported scrap prices remain range-bound; local rebar sales improve

• Local scrap shortage pushes up domestic scrap and rebar tags
  
  
• Chattogram's ship-breaking market faces low activity
  
  

Bangladesh's imported scrap price remained range-bound w-o-w as containerised scrap prices decreased slightly by $1-3/tonne (t) w-o-w. For bulk scrap, inquiries remained weak, and buyers continued to keep their quotes much below suppliers' offers, resulting in a $1-2/t w-o-w price decrease, particularly for scrap from Japan and the US.

The local scrap market faced a supply crunch amid rising inquiries for domestic material. Likewise, the imported market saw improved activity compared to last week, with mills actively procuring for their upcoming production cycle.

According to market insiders, the domestic scrap market has risen to BDT 52,000-53,000/t ($428-436/t), marking an increase of BDT 2,000-3,000/t ($16-25/t) due to the prevailing shortage. However, volatility remains, and prices may fluctuate unpredictably.

Similarly, in the domestic steel market, billet prices ranged from BDT 72,000-73,000/t ($591-600/t). Rebar prices rose to BDT 87,000-88,000/t ($715-723/t) for Chattogram-based mills and BDT 84,000-85,000/t ($690-698/t) for Dhaka-based mills.

BigMint's weekly assessments

• European-origin containerised shredded was down by $3/t w-o-w at $391/t.
  
  
• European-origin HMS (80:20) down by $1/t w-o-w to $373/t.
  
  
• US-sourced HMS (80:20) bulk prices were unchanged w-o-w to $364/t
  
  
• Japanese-origin H2 bulk prices stood at $348/t CFR Chattogram, down by $1/t w-o-w.
  
  

Bulk HMS offers from Singapore were at $378-380/t CFR Chattogram, and PNS was at $393-395/t CFR. H2 from Japan was priced at approximately $345-348/t CFR Chattogram, with limited demand. US offers ranged within $365-370/t, but buyers bid below $360/t.

Market scenario

A major Dhaka-based mill source stated, "Scrap prices have surged by BDT 4,000-5,000/t($33-40/t) within a week, despite moderate rebar demand. Currently, price differences between Dhaka and Chattogram have narrowed, with Chattogram rebar offers standing at BDT 88,000-89,000/t($723-731/t)."

A major Chattogram-based trader informed BigMint, "There is a shortage of scrap in the local market, driving prices higher. Rebar sales have improved, with daily volumes of 500-600 t at our price of BDT 87,000/t($715/t). Local PNS scrap is at BDT 55,500/t($456/t), while rebars from leading brands such as BSRM, AKS, and GPH are priced at BDT 88,000-88,500/t($723-727/t). Last week, we secured imported scrap, including 2,000-t PNS from Hong Kong at $380/t, 2,000-t US shredded at $368/t, and 1,000-t HMS (90:10) from New Zealand at $370/t. We also booked 500 t of rebar bundles from Japan at $388/t."

In the last 7-8 days, Bangladesh witnessed deals for around 15,000-16,000 t of containerised scrap from Hong Kong, the Philippines, Australia, Brazil, and Malaysia, priced at $340-390/t.

Bangladesh ship-breaking market struggles amid limited activity

Chattogram's ship-breaking market remained slow, with no new arrivals and only one confirmed sale of the Panama-origin bulker THREE STAR at $470/LDT. Economic challenges, including the depreciation of the Taka and stagnating steel plate prices, reduced recyclers' ability to offer competitive rates. Inflation and weak domestic demand further suppressed activity. Recyclers remained cautious, struggling to reach the $500/LDT mark, and only 1,969 LDT were received at Chattogram Port this week.

Outlook

Imported containerised scrap offers are expected to remain range-bound amid ongoing market challenges. With rebar mills optimistic about improved sales in the coming weeks, raw material purchase prices are likely to stay on the higher side.