Business activity in the import scrap market in Bangladesh has remained moderate this week as most buyers have continued to face delays in approvals from banks to open new letters of credit (LCs), while import prices for scrap have kept rising. Thus, only occasional deals for containerized scrap have been reported this week at slightly higher levels, while, according to sources, most producers and especially small mills have been suffering due to weak currency flow, mainly due to the upcoming elections in the country.
More specifically, following a few deals for ex-Australia HMS I/II 80:20 scrap at $405/mt CFR last week, this week a new deal is reported to have been signed at $410/mt CFR, while new ex-Australia offers have been voiced at $415/mt CFR, up by $5-10/mt week on week. Besides, offers for ex-Australia shredded scrap in containers have remained at $425-430/mt CFR. However, offers for ex-EU/UK shredded scrap have increased by $5/mt over the past week to $430-435/mt CFR. At the same time, according to sources, several Bangladeshi buyers have started to accept offers for ex-Hong Kong PNS scrap at $445/mt CFR, up by $10/mt week on week.
“Bangladesh is passing through political unrest, which affects steel demand and trade activity,” a market insider told SteelOrbis.
Furthermore, a deal for a mixed ex-GCC batch for HMS I and PNS scrap has been reported at $420/mt CFR Bangladesh this week, according to sources.
In the bulk segment, however, trade has remained close to zero so far, while offers for ex-US HMS I/II 80:20 scrap have increased to around $420/mt CFR, against $405-410/mt CFR last week, while ex-US shredded and bonus scrap offers have been estimated at $425/mt CFR and $430/mt CFR, respectively, up by $15/mt week on week.