Although the Bangladeshi steel sector has continued to face numerous challenges, including slow end-user demand and unstable economic conditions, this week Bangladeshi scrap importers have been rather active in negotiations given the continuous increase in prices. However, while new deals have been reported in the containerized segment at higher levels, in the bulk segment ongoing negotiations have not resulted in fresh bookings so far.
More specifically, in the containerized segment, offers for ex-UK shredded scrap have increased to $440/mt CFR, versus $435/mt CFR reported yesterday and up by $10/mt week on week, while offers for HMS I/II 80:20 have been estimated at around $410/mt CFR. Meanwhile, according to sources, several deals for HMS I/II 90:10 scrap from Australia and New Zealand have been reported at $420/mt CFR, up by $10-15/mt week on week. Besides, a batch for ex-Hong Kong PNS scrap is reported to have been booked at around $450/mt CFR in Bangladesh this week. However, new offers for ex-Malaysia and ex-UAE PNS scrap have settled at $455-460/mt CFR.
At the same time, no fresh bookings have been heard in the bulk scrap segment, though, according to sources, numerous talks are under way. Indicative offers for ex-US scrap are at $405-410/mt CFR, up by $15-20/mt as compared to the latest deal price two weeks ago.
“Bangladeshi buyers are observing updates from Turkey, to evaluate the risks of buying at higher levels,” a market insider told SteelOrbis.