Bangladesh: Rising imported scrap offers, container shortage slow down bookings

Bangladesh-based scrap buyers and steelmakers slowed down from actively booking fresh slots this week. Offers for imported scrap too continue to head northward.

Increasing container shortage and festive mood remained the major reasons behind the slowdown , highlighted local players. Industry insider are looking for clearer market directions due to the slow domestic demand.

Recent offers

• Imported scrap offers for UK-origin shredded is being quoted at $560-565/t CFR Chittagong levels, moving up by $5/t w-o-w.
  
  
• HMS 1&2 (80:20) is now being cited from UK/EU at $525-530/t CFR levels, inching up.
  
  

Bulk offers up, bookings yet to pick up

Bangladesh-based bulk buyers extended their silence this week on booking any bulk cargoes, while, after Japan's Kanto tender outcome yesterday, offers for H2 scrap have increased further.

• Offers for US-origin HMS bulk scrap stand at $560/t CFR Chittagong, an increase of $20/t w-o-w. Last bulk booking from the US were observed around 10 days back at $545/t, CFR levels, SteelMint understands.
  
  
• No firm bulk Japanese H2 scrap offers were heard but price indications stand at $580/t CFR Chittagong, an increase of $10/t CFR Chittagong.
  
  

Major mills' re-bar offers unchanged

Limited demand from end-users led to firm rebar prices. However, it is expected that offers might increase due to a hike in domestic scrap prices. Electricity prices have also surged, driven by coal shortages in Asian countries, and also due to high input cost. Steel mills are thus likely to raise rebar prices, SteelMint understands.

Steel mills in Bangladesh kept rebar (10-16 mm) offers stable at BDT 71,000-73,000/t ($829-853/t) exy-Chittagong, SteelMint learnt from sources. Offers by Dhaka-based plants are at BDT 67,000-68,000/t ($782-794) on exy-basis.