Bangladesh: Mills await fresh bulk scrap offers as steel sentiments improve*

Bangladesh-based mills are increasingly replenishing their scrap inventory as domestic steel market sentiments are improving slowly. The mills remained active in booking imported scrap in containers as there are hardly any firm offers for bulk scrap cargoes available currently.

"All prominent scrap suppliers are sold out for February shipments. The next round of offers would be for March shipments and are expected to be on the higher side," said a US-based bulk scrap trader.

Last week, US-origin bulk offer indications for shredded were at $540/t CFR Chittagong. In contrast, indications for bulk Japanese H2 scrap offers hovered at $550-560/t CFR Chittagong levels.

Containerised deals and offers

Imported scrap prices in Bangladesh rose after a few deals were concluded recently. Market participants expect that bookings may increase further as mills do not have sufficient stock in hand.

• 2,000 t of UK-origin shredded scrap in containers were booked by a steel mill at $570/t CFR Chittagong earlier this week.
  
  
• UK/EU-origin containerised shredded scrap is being offered at $575-580/t CFR Chittagong, up $10-15/t w-o-w.
  
  
• Around 11,000 t of UK HMS 1&2 (80:20) were sold by a trader at an average price of $527/t CFR Chittagong basis, last week.
  
  
• In another deal concluded by the same trader, around 5,000 t of PNS was booked at an average price of $552/t CFR Qasim basis, last weekend.
  
  

Domestic rebar prices yet to pick up: Rebar offers from major mills have remained firm at BDT 77,000-78,000/t exw-Chittagong ($890-902/t), unchanged for the straight third week. In the Dhaka market, offers are at BDT 72,000-73,000/t ($833-845/t), up by BDT 1,000-2,000/t. Nevertheless, demand for rebar has increased as various government construction activities are at their peak due to the ongoing winter, the ideal season for construction.

*Correction: Heading changed