Two new bulk scrap bookings have been concluded to Bangladesh over the past week, with a slight price increase. At the same time, purchases of scrap in containers have fallen sharply in the country as customers have not been ready to accept the recent sharp hike in offers prices.
A deal for a mixed 32,000 mt cargo in bulk has been done at $475/mt CFR for shredded and $470/mt CFR for HMS I/II 80:20, up by $5/mt from the previous ex-US deal reported in early April. The second contract for about the same volume has been closed at a similar price level.
Offer prices for shredded scrap in containers in Bangladesh have increased to $495-500/mt CFR and some sellers are even asking for $505/mt CFR due to the freight cost rise, according to sources. Two weeks ago, offers were at $480-485/mt CFR. No deals for shredded scrap in containers have been reported after the sharp price increase. The steel production levels have declined at major mills in Bangladesh due to overall lower demand because of the pandemic. “Buyers will not pay above $480/mt CFR,” a local source said. Offers for P&S have been hiked to $510-515/mt CFR.
No deals have been done for HMS I/II 80:20 in containers either after offer prices reached $470/mt CFR, versus the tradable level of $445-450/mt CFR ten days ago.