Bangladesh: Imported scrap trade limited on Covid restriction, Eid holidays

Bangladesh's scrap market remained quiet this week too amidst ongoing Covid restrictions and the upcoming Eid holidays. Imported scrap offers into Bangladesh remained mostly range-bound w-o-w with limited transactions reported at higher offers.

"The market seems to be very quiet and dull this month due to Eid holidays and lockdown, and is expected to revive in Aug'21," said an active market player.

Containerised scrap deals and prices:

• UK/EU-origin shredded offers are being quoted at $560-565/tonne (t)CFR Chittagong basis, while no firm deal has been
  
  
• Around 2,000 t of HMS 1&2 (80:20) from the UK has been sold at $520-522/t CFR Chittagong, sources confirmed to SteelMint.
  
  
• In another deal,around 1,000 t of Australian/ New Zealand origin HMS 1&2 (90:10) has been booked at $533-535/t CFR levels.
  
  
• Bangladesh-based mills are heard to have raised inquiries for Dubai-origin HMS in the last two weeks. Few deals were reported at $540/t CFR levels.
  
  
• Few deals of Brazil-origin HMS were reported at $520-525/t CFR Bangladesh.
  
  
• Fresh offers for UK/EU HMS 1&2 (80:20) are now at $525-530/t CFR Chittagongand that of P&S at $550/t CFR.
  
  

Buyers of bulk scrap cargo too remained absent due to low finished steel demand in a closed market. "Mills will resume bulk cargo bookings for Sept'21 loading. However, at present, demand is quiet and trading activities are likely to resume in another 10-14 days", said a bulk scrap trader.

Domestic steel market subdued: The country's domestic market has been severely impacted by the continuous increase in Covid cases. Finished steel demand is poor at present due to the lockdown, upcoming Eid holidays and the monsoon, SteelMint learnt. From next week, mills will remain shut for one week, and will wait for further government order as it is expected that lockdown would be extended for the 14 days more. Dhaka-based rebar prices remained unchanged at BDT 67,000-68,000/t CFR levels, while few steel mills are selling rebar at BDT 66,500/t exw. Major mills, too, kept their rebar prices at BDT 71,000-72,000/t exw-levels.