Bulk Scrap Prices Fall in Recent Booking to Bangladesh

Bulk scrap prices to South Asia have come down with recently concluded deep sea booking to Bangladesh. The ongoing global downturn as well as limited scrap demand from steel mills have contributed to the sharp fall in prices.

In a recent booking concluded last week, a major steel mill based in Chittagong has booked a bulk vessel 32,000 MT of composite cargo, comprising of Shredded scrap at USD 310/MT, HMS at USD 305/MT and bonus scrap at USD 315/MT CFR Chittagong. The shipment for the cargo is expected for Feb'20.

Earlier this month an Indian mill had concluded a bulk cargo at the beginning of Jan'20, from the same US (West Coast) supplier, at USD 335/MT for HMS, USD 340/MT for Shredded and USD 345/MT for Bonus scrap respectively CFR Kandla levels.

While prior to this, the last bulk booking by Bangladesh was reported in the latter half of Dec'19, when another Chittagong based mill had booked a mixed cargo from another US recycler at USD 300/MT and USD 305/MT CFR basis for HMS and Shredded, almost at similar levels as the latest booking.

Meanwhile the global scrap prices are in a downward trend after the latest Turkish bookings concluded over the last one week. Containerized scrap offers to Bangladesh have come down further and stand at around USD 309-310/MT CFR Chittagong for Shredded scrap.