Over 100,000 t bulk scrap cargoes booked by Bangladesh steel mills in Aug

Active restocking of scrap by Bangladesh based steel mills has been noticed in Aug'20, after remaining silent for few weeks in Jul '20. SteelMint learned from its sources that over 100,000 t bulk scrap cargo bookings have been made so far in Aug'20, out of which around 95,000 t has been booked from the US and rest from Japan. Mills have resumed scrap import bookings actively in anticipation of steel demand rebound in the coming months.

Bulk scrap import deals for Bangladesh in Aug

In the month of Jun '20, a total of 315,847 t of bulk scrap was imported by Bangladesh, as per vessel line up data maintained with SteelMint.

Scrap offers in containers - SteelMint's assessment for containerized shredded 211 scrap from European origins stands at $325/t CFR Chittagong.

• Offers mostly remained stable at this level since last week's closing, while increasing around $15 against mid of last week.
  
  
• Few trades were reported for Chile/Australia origin shredded at around $315/t CFR Chittagong.
  
  
• HMS offers are hovering around $300/t, depending on origin.
  
  
• A Chittagong based trader sold around 2,000 t of Chile origin HMS 1&2 (80:20) at around $290/t CFR basis.
  
  
• Suppliers have quoted at $ 300-305/t CFR Chittagong USA origin HMS 1&2 (80:20).
  
  
• Brazil origin HMS 1&2 (80:20) is being offered in the range of $288-290/t CFR Chittagong.
  
  
• New Zealand/ Australian HMS offers now stand in the range of $290-293/t CFR Chittagong basis.
  
  
• Offers for Australian origin HMS 1&2 (90:10) is being reported at $310/t CFR Chittagong.
  
  

Indian sponge iron offers to Bangladesh increase - Offers for Indian sponge iron export to Bangladesh have increased slightly by $5 w-o-w and are in the range of $300-305/t CFR Chittagong. A steel mill booked 2,000 t of sponge iron, however, it could not be confirmed from buyer till the time of publishing this report.

Bangladesh domestic market

Domestic steel prices have increased on a weekly basis. On the other hand, there is a low demand for finished steel products in the government sector, due to suspension of major construction projects.

• Rebar prices have increased after Eid-holiday, as domestic market activities have resumed from this Monday and stand at BDT 51,000/t exw Dhaka, up by BDT 2,500/t against last price reported before holidays.
  
  
• While billet prices up by BDT 1000/t and being sold at BDT 41,000/t exw Dhaka.
  
  
• Local shipyard scrap prices have risen significantly by BDT 1000/t due to supply tightness and currently stand at BDT 29,000/t ex yard Chittagong, inclusive of all taxes.