Bangladesh: Imported scrap trade subdued on bearish construction sentiments

Bangladesh-based steel mills were quiet throughout the week in terms of imported scrap purchases with limited deals being concluded amid lower construction activities due to rains and ongoing holiday sentiments.

Container prices inch up

After a lull seen in the last couple of weeks in the container market, slight activity was observed as buyers increased procurements.

• Fresh offers for UK/EU-origin shredded are being quoted at $550-560/t CFR Chittagong level, up by $5/t w-o-w.
  
  
• Around 2,000 t of HMS 1&2 from South Africa have been booked at $525/t CFR Chittagong levels.
  
  

The imported bulk scrap market is also subdued this week, owing to dull domestic demand. However, many major mills have already booked bulk cargoes earlier in the month. Price indications for the US origin bulk HMS is being quoted at $515-520/t CFR Chittagong. Limited offers were heard from Japanese suppliers.

• Bad weather impacts constructions: November to March is usually the peak season for construction activities but this year due to the high price of all construction materials, people are not buying much and have opted to wait to start new projects, SteelMint learnt from sources. Continued rain in most of the areas made the situation worse.
  
  
• Domestic steel prices range-bound: Domestic rebar prices from major mills have remained range-bound at BDT 77,000-78,000/t exw Chittagong ($897-909/t). In the Dhaka market, offers are at BDT 70,000-71,000/t ($815-827/t), but buyers are seeking around $68,000-69,000/t exw ($792-804/t).
  
  

Outlook
Market participants expect the situation to improve by mid-Jan'22. Meanwhile, a few players are waiting for fresh Turkish deals to offer a clearer price direction. In Pakistan, around 1,500 t of UK/EU-origin shredded scrap in containers was booked at $535/t CFR Qasim and 500 t of HMS of UAE-origin have been booked at $470/t, CFR respectively. SteelMint's assessment for shredded scrap imports into Pakistan stands at $530-540/t CFR, up by $5/t d-o-d. This may help prices to rebound in the Bangladesh market as well.