Bangladesh: Inquiries for bulk scrap cargoes remain firm despite bearish steel sentiments

Bangladeshi steel manufacturers continue to place inquiries for bulk scrap cargoes. There was hearsay about a couple of bulk scrap bookings being concluded from USWC towards end of last week with HMS around $325-330/t CFR, however, it could not be confirmed till the time of publishing this report.

Bulk scrap offers -

• Shredded is being offered at a $335-340/t CFR Chittagong basis from USA & Europe.
  
  
• While few offers for HMS scrap in bulk from Europe origin is being quoted around $325-330/t CFR Chittagong.
  
  
• Japanese scrap offers to Bangladesh have now increased, SteelMint learnt from its trade sources. Currently, suppliers have quoted $335/t for H2 and HS grade scrap, while, buyers' price idea stands at $315/t level. However, no fresh deal was reported at this price level.
  
  

"There is good interest from Bangladeshi buyers, but there are constraints on bulk cargoes from suppliers-side. So, the suppliers may not be willing to lower offers much" shared a scrap trader.

Containerized imported scrap offers remained more or less stable against last week. Whereas, buyers are holding back and wait for more price correction, considering bearish finished steel market sentiments.

Containerized scrap offers -

• SteelMint's assessment of containerized shredded 211 scrap from UK/Europe origins remains unchanged at $335-340/t CFR Chittagong.
  
  
• Containerized HMS 1&2 (80:20) from UK/Europe is being offered in the range of $320-325/t CFR Chittagong level, up by $5 w-o-w.
  
  
• Whereas, Brazilian HMS is being sold at $320/t level.
  
  
• HMS 1 and PNS mix from Brazil is being traded at $335/t CFR Chittagong level.
  
  

"Buyers are resisting to buy at this price level, still negotiations are going on" shared by a trader based in Bangladesh.

Domestic market overview -

Domestic finished steel market sentiments have remained slow this week too. However, Bangladesh's economy has started recovering from the pandemic as the economy is showing signs of early recovery and its gross domestic product (GDP) has expected to grow by 6.8 % in FY21, the latest Asian Development Bank (ADB) report says.

• Domestic billet prices remained steady at BDT 41,500-42,000/t level, against last week's prices.
  
  
• Local shipyard scrap prices moved up slightly and are being quoted in the range of BDT 30,700-31,300/t ex yard Chittagong