This week, trade activity in the import scrap market in Bangladesh has continued to lack strength amid continuing issues with opening letters of credit (LCs). However, most sellers have been bullish as regards Bangladesh, following the uptrend globally, and, although most Bangladeshi buyers have kept resisting price hikes, occasional deals for containerized scrap have been reported at slightly higher levels.
More specifically, most offers for shredded scrap in containers have been reported at $420-425/mt CFR, up by $5/mt week on week, with several deals for ex-EU shredded scrap for around 3,000 mt in total reported to have been signed at the abovementioned levels. At the same time, by the end of the week, several Bangladeshi buyers have already reported offers at $430/mt CFR. “Offer levels have gone up but Bangladesh is facing severe LC problems, so, although some new bookings have been reported, I am not sure if they will honour the contracts citing LC issues,” a Bangladeshi trader told SteelOrbis.
“Prices are up in India as well. We are expecting prices will further rise in India after the Diwali festival on November 12, which will consequently affect Bangladesh,” another market insider said.
Meanwhile, offers for ex-EU/UK HMS I/II 80:20 scrap in containers have been voiced at $405-410/mt CFR, up by $5/mt over the past week. Besides, according to sources, offers for PNS scrap from Malaysia have increased by $5/mt to $430/mt CFR, though bids have been reported at $425/mt CFR. Offers for ex-Malaysia busheling scrap have settled at $440/mt CFR. Furthermore, several offers for ex-Hong Kong PNS scrap have been voiced at as high as $445/mt CFR.
Meanwhile, trade in the bulk segment has been close to zero this week, with customers waiting for the new Kanto tender in Japan. Indicative offers for ex-US HMS I/II 80:20 scrap have been heard at $400/mt CFR, while for shredded scrap the indicative offers have been at $405-410/mt CFR, mainly the same as last week.