Bangladeshi steel scrap customers have purchased two batches of ex-US scrap by bulk. In one of these deals, market participants have reported some slight price decrease.
A deal for 30,000 mt of scrap in total from the US was concluded late last week to Bangladesh. HMS I/II 80:20 in the deal was priced at $290/mt CFR, shredded scrap at $295/mt CFR and P&S at $300/mt CFR. The cargo will be shipped in April. This contract has been assessed by major market participants as constituting a slight weakening compared to the previous deal for an ex-US bulk cargo sold to Pakistan. Shredded scrap was sold at $306/mt CFR in that deal and, taking into account that freight to Pakistan is about $8-10/mt higher than to Bangladesh, the recent transaction to Bangladesh has been made with a $1-3/mt discount.
Moreover, another deal for 32,000 mt of shredded scrap from the US was concluded at about $300/mt CFR to Bangladesh, also late last week. The higher price in this contract was attributed to the “full shredded scrap cargo,” a trading source told SteelOrbis.
Prices for scrap in containers have been going up rapidly over the past few weeks due to a lack of containers and higher freight rates. For example, last week deals for ex-EU shredded scrap to India were signed at $309/mt CFR.
