Bangladesh: Imported Scrap Prices Stable in Recent Deals

In conversation with market participants, SteelMint learned that imported scrap prices remained mostly stable on a weekly basis, while considerable trades were concluded for both bulk and containerized scrap. Domestic market showed improvement with hike in prices, while many mill owners wait for further decision on rollback of recently advance tax before placing further orders.

SteelMint's assessment for containerized Shredded scrap from Europe and North America for this week is range bound, around USD 332-337/MT CFR Chittagong, broadening the range from last week's assessment, while decent bookings were reported amid improved demand as rise in finished steel prices is supporting the buyers. Few suppliers from USA and UK were reported to be offering at USD 338-340/MT, CFR.

Containerized HMS offers too remained in the similar range as last week, with South American origin HMS being reported in the range of USD 320-322/MT, CFR, as several bookings of good quantity reported from countries like Brazil, Chile and Venezuela. European HMS 1&2 stands at around USD 315/MT, CFR while limited offers of P&S from Brazil were heard at slightly higher price of around USD 340/MT, CFR.

Bangladesh domestic steel market bullish with price hike - With more clarity on the new tax structure gained this week, including the Advance Tax of 5% on raw materials and semi-finished products, the steelmakers expect a hike of around BDT 2500/MT (USD 30) in finished steel prices in case of mainly imported scrap being used, while a hike of BDT 2000/MT is expected in case of locally procured scrap being used. However, a source shared that with gas prices also rising by about 32% the total increase in prices could be around BDT 5000/MT. Many buyers have reportedly requested for the waiving off of the Advance tax, however no confirmation on decision as yet.

Local shipyard scrap prices followed the trend increasing considerably on a weekly basis and currently stand at around BDT 36,000-36500/MT (USD 426-432), up by around BDT 1500/MT against last week'. Ship plate prices in Chittagong's market also rose, with local 16 mm & 12 mm ship plates being offered at around BDT 44,500-44,700/MT (USD 527-529) and BDT 43,500-43,00/MT (USD 515-517) respectively ex-works inclusive of local taxes.