As recently reported by SteelOrbis, ex-India DRI offer prices to Bangladesh increased and became higher than shredded scrap import offers.
Sources report that as DRI offers increased and the global scrap market regained some ground with Turkey’s most recent scrap deal in the US at slightly higher price level than the previous deal, containerized shredded scrap offers to Bangladesh from the UK and EU are “seeking to increase by $5/mt to $355-360/mt CFR” from the recently reported level of $350-355/mt CFR on August 27.
According to a source, the import duty structure in Bangladesh is as follows at the present exchange rate of USD to 83.64 BDT: $0/mt for pig iron, $13/mt for DRI, $18/mt for ferrous scrap, and $90/mt for billet. The import structure favors pig iron, DRI and scrap imports over billet imports, and “can allow for a slight premium on DRI compared to scrap imports as the import duty is lower.” The higher ex-India DRI offers at the moment are expected to support scrap import deals at prices trending in tandem, though slightly lower, than the higher DRI prices.