After a long pause, scrap importers in Bangladesh have returned to bulk bookings. Suppliers from the US have lowered their offers from the peak level seen last week to attract buyers.
A cargo of 37,000 mt of scrap from the US West Coast has been sold recently to Bangladesh, in which 13,000 mt of HMS I/II 80:20 was priced at $275/mt CFR, while 24,000 mt of shredded scrap was priced at $280/mt CFR. Most offers for HMS I/II 80:20 were at $285/mt CFR and above last week, indicating a price decline of at least $10/mt over the past week. The previous deal for ex-US scrap to Bangladesh was reported in April, before the lockdown.
Steelmakers have started to increase the capacity utilization rates after the national lockdown lifted, but the majority of mills have not been in a hurry to increase production, working at less than 50 percent of capacity. Steel demand has not improved visibly yet and producers have been cautious in purchases. Sources said that some mills are in a position to buy to cover some needs for August.
Offers for containerized shredded scrap have decreased to $290-295/mt CFR Bangladesh from $300/mt CFR last week.
