Bangladesh: Mills seek imported scrap cargoes on optimistic demand outlook

Imported scrap inquiries into Bangladesh have picked up as mills are actively looking for cargoes for Oct-Nov'21 shipments, SteelMint understands. Positive steel demand outlook after the monsoons kept mills active in booking scrap cargoes. Increased inquiries from the last few days resulted in active containerised HMS scrap bookings by mills. However, container availability and freight rates continue to bother mills.

Recent containerised offers and deals

• Total 8,000 tonnes (t) of UK-origin HMS 1&2 (80:20) have been sold at $495/t CFR Chittagong.
  
  
• 2,000 t of HMS 1&2 (80:20) were booked by a steel mill at $490-493/t CFR basis from Mauritius and the UK.
  
  
• Deals of 3,000-4,000 t of P&S scrap were also heard concluded at $540/t, CFR from UK
  
  
• Fresh offers for UK-origin shredded are being quoted at $540-550/t CFR levels.
  
  

Mills raise inquiries for bulk cargoes of Nov'21 shipment

While competitive markets like Vietnam and Taiwan are already paying a high price, bulk offers from the US to Bangladesh have also witnessed an increase. Mills have raised enquiries for bulk scrap bookings for Nov'21 shipments.

SteelMint's assessment for US-origin HMS bulk scrap stands at $525/t CFR Chittagong, an increase of $10/t on a weekly basis. Bulk Japanese H2 scrap offers are at $555-560/t CFR Chittagong.

Rebar prices are yet to pick up

Inclement weather conditions in Bangladesh have kept demand subdued. Rebar demand is expected to improve in the coming months, especially after the monsoon season. Steel mills in Bangladesh are offering rebar (10-16mm) at BDT 71,000-73,000/t ($829-$853/t) exw-Chittagong, as per SteelMint reports.

Thedomestic market is slow and there are variation in prices. Offers by Dhaka-based plants are at BDT 66,000-68,000/t ($771-794/t) on exy-Dhaka basis.

Outlook
Markets expect Bangladesh mills to remain active in the imported scrap market in the near term.