South Asian Steel Mills Turn Active for Bulk Scrap Bookings

Two bulk scrap cargo bookings were reported recently to Bangladesh from USA (west coast) based supplier.

SteelMint learned from industry participants that with the continuous fall in imported scrap prices at the global levels, South Asian markets have shown a renewed interest in booking bulk cargo vessels, while little resistance has been shown by global suppliers in accepting sharply low bids, with the tradable price of imported scrap now standing at around 2-and-a-half year low levels for all the South Asian markets .

In confirmed Bulk cargo vessel deals to Bangladesh reported yesterday, 2 prominent Chittagong based steelmakers have booked a bulk vessel each, with mixed cargo comprising of Shredded scrap booked at USD 270/MT and HMS 1 scrap at USD 265/MT, CFR Chittagong.

Both cargoes have been booked from a major west coast based supplier in USA, with the total quantity for both the vessels being around 32,000-35,000 MT each. The shipments are expected to be loaded in September, for delivery in Oct'19. Apart from these bookings, another steelmaker is under negotiation for booking bulk cargo of shredded scrap, and is targeting similar levels.

Few Indian mills have also shown interest in booking vessels of scrap and have sent inquiries as of today.

Containerized scrap prices in South Asia too have fallen down significantly following the global downtrend. Yesterday, a Dhaka based mill booked 1000 MT of Shredded from UK at USD 280/MT, CFR Chittagong, while few Shredded trades to India have been reported at around USD 265-266/MT CFR Nhava Sheva.