Bangladesh: Imported scrap trade remains muted amid negative market sentiments
Little activity was seen in Bangladesh’s imported scrap market both in terms of container and bulk trades as steelmakers and buyers in that country are facing s...
Little activity was seen in Bangladesh's imported scrap market both in terms of container and bulk trades as steelmakers and buyers in that country are facing supply chain disruptions as regards domestic transportation due to the hike in freight rates. Meanwhile, increased cost of production has further drowned buying interest.
The country's containerised scrap buyers have postponed fresh bookings. In addition, a volatile currency and shortfall of funds have kept market sentiments largely negative.
Container deals
- A deal for around 1,000 t of US-origin shredded scrap was concluded at $462/t CFR Chittagong.
- Around 1,000 t each of shredded and HMS (80:20) were traded last weekend at $465/t and $455/t, respectively.
- 3,000 t of shredded scrap was booked at $470/t CFR, while 1,000 t of HMS (90:10) changed hands for $460/t CFR.
Muted sentiments
The country's containerised imported scrap market remained soft as major buyers slowed down buying due to currency fluctuation and rising freight rates. Mills are securing domestic scrap more to meet immediate requirements, sources informed.
- Fresh offers for UK-origin shredded were heard at $470/t CFR, down $5/t w-o-w. However, buyers have shown little interest in booking any container at these levels.
- HMS 1&2 (80:20) is being offered at $450/t CFR, largely stable w-o-w.
Bulk market overview
After the recently concluded Turkish deals at increased levels, suppliers are unlikely to lower offers. Suppliers now have the room to increase offers as both Indian and Turkish buyers are in the market. Hence, Bangladeshi mills are not keen on booking fresh bulk cargoes at higher levels.
"Turkiye's imported scrap prices are moving upwards and the US suppliers are resistant to sell material at lower levels. Many suppliers have already begun to increase prices," said a trader source who largely deals in bulk.
Domestic rebar prices
Mills are selling rebar at lower prices and the market is following the downward trend as the month draws to a close. Meanwhile, to continue the cash flow and payment of remaining dues, many mills are ready to sell finished steel at low prices. On the other hand, the Bangladeshi government has announced a halt on new construction projects and existing projects, too, are expected to go slow.
- SteelMint's assesses domestic rebar prices at BDT 85,000-88,000/t ($840-870/t) exw-Chittagong, down BDT 1,000/t w-o-w.
- The secondary mills in Dhaka are quoting rebar at BDT 79,000-80,000/t ($780-790/t), down BDT 500/t w-o-w.
Outlook: Imported scrap buyers are likely to continue bulk bookings to procure inventory ahead of winter. The container market is likely to improvement from here on.
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