Bangladesh's import scrap market has registered a modest improvement in sentiment over the past week, though purchasing activity has remained limited as mills have continued to buy selectively and mainly on a hand-to-mouth basis. European containerized shredded scrap prices have remained stable, while HMS offers have edged up compared to last week. Meanwhile, persistent bid-offer gaps have continued to restrict activity in the bulk segment. SteelOrbis learned from trade and industry circles on Friday, July 31, that buyers have remained highly price-sensitive despite showing slightly greater interest in the market.
More specifically, in the containerized segment, ex-EU shredded scrap has been offered at $400/mt CFR Chattogram this week, unchanged from last week, while ex-EU HMS I/II 80:20 scrap has been offered at $370/mt CFR Chattogram, up slightly from $366/mt CFR Chattogram in the previous week. At the same time, the marginal increase in HMS offers has failed to stimulate significant purchasing activity, as mills have continued to resist the current price levels.
As for ex-Australia material, HMS I/II 80:20 scrap has been offered at around $370/mt CFR Chattogram. A possible transaction with a Dhaka-based mill has also been heard in the market, although no confirmation had been received at the time of writing. Meanwhile, shredded scrap has been offered at around $400/mt CFR Chattogram, with buyers' bids remaining closer to $390/mt CFR. The latest offer level is up by around $20/mt from the approximately $380/mt CFR Chattogram heard last week for ex-Australia/New Zealand shredded scrap, further widening the gap between sellers' targets and buyers' workable levels.
In terms of other origins, Philippine-origin GI bundles have been booked at around $325/mt CFR Chattogram. Meanwhile, Thailand-origin NTP bundles have been sold at approximately $385/mt CFR Chattogram, largely unchanged from the deal level reported last week. Ex-Singapore HMS I/II 80:20 scrap has been offered in limited volumes at around $400/mt CFR Chattogram, while ex-Singapore PNS scrap has been offered at approximately $410/mt CFR against buyers' bids at around $400/mt CFR.
In the bulk segment, ex-US West Coast (USWC) HMS I/II 80:20 scrap has been indicated at $390-395/mt CFR Chattogram, while shredded and PNS grades have been indicated at premiums of approximately $5/mt and $10/mt, respectively. Buyers' bids, however, have remained at around $385/mt CFR on an HMS basis, reflecting the continuing gap between sellers' expectations and mills' workable levels.
As for ex-Japan material, H2 scrap has been offered at $395-400/mt CFR Chattogram this week, compared to indications at around $390-395/mt CFR Chattogram last week. Meanwhile, HS scrap has been offered at approximately $425/mt CFR Chattogram. However, buyers have shown little interest in submitting bids at these levels, considering Japanese material uncompetitive compared with current ex-USWC indications. “At the current Japanese offer levels, buying does not make economic sense compared with ex-US material, and buyers are therefore not interested in bidding,” a Bangladesh trader told SteelOrbis.
Meanwhile, Bangladesh's domestic steel market has remained weak, as continued monsoon rainfall has disrupted construction activity and kept finished steel demand subdued.
$1 = BDT 123.88
