Scrap prices have fallen in a deal for ex-US bulk scrap to Bangladesh. Customers were active in bookings of import scrap in December and have been mostly reluctant to purchase in the first half of January. The HMS I/II 80:20 price in a contract for a total of 32,000 mt of scrap from the US West Coast is at $305/mt CFR, with shredded at $310/mt CFR and P&S at $315/mt CFR. About two weeks ago, offers for ex-US HMS I/II 80:20 were at $330/mt CFR to Bangladesh. Moreover, prices have lost $10/mt compared to last week.
Market sources have said that, even taking into account a sharp decrease, the workable level for ex-US scrap has already slipped to about $295/mt CFR Bangladesh.
Buyers from Bangladesh have also been replenishing stocks of high-grade scrap from Japan. A few batches of Shindachi scrap have changed hands at $313/mt CFR Bangladesh.
It is expected that limited demand for scrap in Asia due to the Chinese New Year holiday will put pressure on import scrap prices. Customers in Bangladesh have moderate stocks, and so they will prefer to book any additional volumes only in the event of a sizable price decrease.