Bangladesh Steel Mill Booked Bulk Scrap Cargo from Australia; Prices Increase

After witnessing record bookings of bulk ferrous scrap in March'20, Bangladesh has made another fresh booking of bulk vessel. It has recently been confirmed, although the deal concluded at around the opening of April'20, according to trade sources report to SteelMint.

In the latest bulk booking, the Australian division of a global recycler sold a bulk vessel of 26,000 MT of composite cargo to a Chittagong mill, comprising of 13,000 MT of Shredded at USD 270/MT and 13,000 MT of HMS at USD 265/MT CFR Chittagong. Booking was made at April beginning and the shipment is expected in May'20, with it being the 3rd booking of scrap via bulk route by this steelmaker since last year.

The booking comes at a price of USD 20/MT higher than the last bulk cargo booked in March closing when Shredded was sold at USD 250/MT level from US west Coast. The rise in the price is in line with the rebound at global levels were observed in 1st week of April when supply tightness at yards begin to show up.

Now that most mills in Bangladesh have closed their operations as the impact of covid-19 pandemic was felt through shortage of workforce, refractories etc and diminished steel demand, it is less likely that mills will conclude further bulk deals for some time.