Bangladesh: Imported Scrap Trades Pick Up Amid Rising Inquiries

SteelMint learned in conversation with industry participants that imported scrap market in Bangladesh has observed few trades however trade sentiments have started to improve. Imported scrap offers majorly from European and Canadian suppliers have been reported further upward correction. Local steel market remains more or less stable but it shows signs of improvement in upcoming days with increasing activities.

Offers for containerized Shredded 211 heard in the range USD 372-375/MT, CFR Chittagong. While bulk cargo offers for Shredded heard at around USD 385/MT, CFR. HMS 1&2 (80:20) bulk cargo offered at around USD 372/MT, CFR Chittagong.

In recent trades heard, HMS 1 scrap from South Africa traded at around USD 363-364/MT, CFR Chittagong, up USD 2-3/MT as against last week's report. While HMS 1 from Chile sold at USD 358/MT, CFR.

Offers for P&S scrap heard in the range of USD 375-378/MT, CFR from leading suppliers like Dominican Republic and Brazil.

Indian sponge iron export deals to Bangladesh reported this week at around USD 365/MT, CFR Chittagong, up USD 5/MT as against last week's report.

Bangladesh local scrap prices edge up - Local ship breaking scrap prices heard slight upward correction and assessed at around BDT 34,500/MT as against the last week's report at around BDT 34,000-34,500/MT. Prices are inclusive of taxes. Ship cutting plate prices remained almost stable on weekly basis. Latest prices assessed at BDT 41,800/MT for 16 mm, at BDT 40,800/MT for 12 mm and at around BDT 42,800-43,000/MT for plate thickness 20 mm & above.

Local finish steel market is also showing steady demand and the movement is being reported at almost stable prices in the local market.

Bulk scrap imports up 59% M-o-M in Oct'18 - As per vessel line up data maintained with SteelMint, 3 bulk scrap vessels arrived at berth in Oct'18 at Chittagong port, in which 2 vessels are from USA and 1 from Japan, with total quantity of 88,178 MT. Bulk imports increased 59% M-o-M as against 55,442 MT bulk ferrous scrap in Sept'18.

Ship breaking market in Bangladesh continues bullish sentiments - The assessment for ship cutting prices remains firm at USD 445/LDT for general dry bulk cargo, at USD 455/LDT for tanker cargo and at USD 465/LDT for containers on CNF Bangladesh basis. After witnessing flurry in sales last week, Bangladesh continues as the market leader with capacity and demand looking increasing tight. On the other hand, local ship plate prices remained almost steady after taking a tumble of USD 5/MT during the course of the last week.

Around 5 sales of containers were committed on en bloc basis comprising around 33,188 LDT volumes at a firm USD 448/LT LDT basis. Additionally, another container of 8,186 LDT was committed at a strong USD 455/LT LDT.