Bangladesh: Major mill books bulk scrap cargo from Japan, container market muted

Bangladesh's import scrap market remained mostly silent this week. However, a major mill in the country is looking for the opportunity to book bulk cargoes at tradable price levels. A mill has booked bulk cargo of around 15,000 t of Japanese H2 material in today's Kanto Tetsugen scrap export tender.

The cargo was booked at JPY 46,226/t FAS ($405/t CFR). This is the third consecutive month that a major mill has won the tender. The tender fetched bid prices lower by JPY 4,383/t FAS ($32/t) m-o-m, which is the second successive decline after March.

Recent offers

• Fresh indicative offers for Japanese H2 were heard at $405-410/t CFR Chittagong levels. Prices have edged down significantly by over $30/t w-o-w.
  
  
• US-origin bulk HMS (80:20) was heard at $420-425/t CFR, down $$20-25/t w-o-w.
  
  

Negotiations are likely to continue for bulk cargoes. However, negative domestic market sentiments weigh on the import scrap market.

On the other hand, the container market remained muted, with limited inquiries heard. Market participants believe that prices should come down further, and are waiting for price clarity. In a recently concluded Turkish deal from the US, imported scrap prices came down to $370/t CFR.

Further, suppliers are holding offers, as neighbouring countries are also watching the market closely.

UK/EU-origin shredded material is being quoted at $445-450/t CFR levels, down $5-10/t w-o-w. No fresh deal was concluded at these levels.

Domestic market scenario

Domestic market participants are struggling to survive in the market. The steel mills are cautious as prices continue to dip. Major Chittagong-based mills kept prices high at BDT 97,000/t for rebar, unchanged w-o-w.

Local ship-breaking scrap prices have increased due to material shortage and are at BDT 68,000-69,000/t exy, up sharply by BDT 6,000/t w-o-w.

Market awaits budget

Market participants are hopeful that the upcoming budget for FY23 would be more supportive for the steel industry. The budget size would be around BDT 7.5 lakh crore, which will be the highest-ever in the history of Bangladesh, according to a document published by the Finance Division. The Finance Minister is set to place in parliament the national budget for fiscal year (2023-24) on 1 June.