Bangladesh: Imported scrap trade remains subdued

Bangladesh's imported bulk scrap trade remained less active this week in the absence of buyers. Meanwhile, negative market sentiments kept trade activities muted. Containerized scrap buyers extended their silence due to disruptions in infrastructure projects caused by heavy rainfall and the consequent limited demand for construction steel.

Notably, Bangladesh remained a major buyer for the third consecutive month in Japan's Kanto scrap export tender. In fact, buyers have been showing consistent interest in procuring bulk material from Japan since July. A total of 15,000 t of H2 material has been booked at JPY 51,040/t ($357/t) FAS basis.

Prices have risen to JPY 8,979/t ($62/t) from JPY 42,062/t ($294/t) in August. Notably, prices have moved up to a three-month high on increased bid prices, as per SteelMint data.

However, after this, no major bulk bookings were heard as firm indications were not received for Japanese material.

"Indicative offers for US-origin bulk HMS 1&2 (80:20) cargoes were largely at $420/t CFR levels, while buyers are not available at these levels. Buyers' bid levels are at $405/t CFR for late-October and early-November shipments," said a bulk scrap trader. "But buyers are targeting further discounts below $400/t for December shipments," he added.

Container market extends silence

The imported containerized scrap market remained bearish for yet another successive week. There are issues pertaining to opening of new LCs. Mills are working but with lower production capacities, owing to dull demand for finished steel in the domestic market.

"Small mills are finding it very hard to sustain in the current market situation," said a source.

• Fresh offers of UK-origin shredded were heard at $470-475/t CFR, moving down significantly by $25-30/t w-o-w. However, buyers have showed little interest in booking any container at these levels.
  
  
• HMS 1&2 (80:20) is being offered at $440-450/t CFR levels, down by $20/t w-o-w.
  
  

Rebar prices drop further

The market is slow, and rebar prices continued to drop on d-o-d basis. Meanwhile, some mills are running at 50% capacity, while some mini-mills have suspended production.

• SteelMint's assessment for domestic rebar prices stood at BDT 88,500/t ($851/t) exw-Chittagong, down BDT 500/t w-o-w.
  
  
• Secondary mills in Dhaka are quoting rebar at BDT 80,000/t ($770/t), down by BDT 500/t w-o-w.
  
  

Outlook: Bangladesh' imported scrap market is likely to continue with bulk bookings ahead of the winter season. However, secondary mills may take time to recover from the negative sentiments which have been aggravated by the LC restrictions and flood damages.