Cautious sentiment has persisted in Bangladesh’s import scrap market following this week’s price declines in the containerized scrap segment, with many buyers remaining on the sidelines after the holiday. However, some believe that easing monsoon conditions and stronger rebar interest could support prices, with trading activity set to rebound next week.
This week, import scrap prices have declined by at least $5-10/mt over the past two weeks, but the broader market has shown little appetite for new scrap purchases. According to sources, most offers for shredded scrap in containers from the EU and Australia have been voiced at $375/mt CFR against $380-385/mt CFR two weeks ago. Besides offers for ex-EU and ex-Australia HMS I/II 80:20 scrap have been heard at $360/mt CFR and $355/mt CFR, respectively.
In the bulk segment, indicative prices for ex-Japan H2 scrap have settled at $355-359/mt CFR, following Japan’s recent Kanto scrap export tender for approximately 15,000 mt of scrap booked by Bangladeshi mills at JPY 42,267/mt FAS, reflecting a decrease of JPY 122/mt month on month. However, the dollar-based price increased from $291/mt to $294/mt FAS, including the changes in the Japanese yen-US dollar exchange rate. The FAS price translates to JPY 43,267/mt FOB or $301/mt FOB, which means around $361/mt CFR.
Offers for ex-Singapore scrap in bulk have moved sideways, with offers for HMS I/II 80:20 scrap standing at $355-360/mt CFR, while indicative offers for ex-US HMS I/II 80:20 scrap have been estimated at $355-360/mt CFR.
“With monsoon-related disruptions starting to ease, market sentiment remains upbeat heading into late June. Mills are likely to restock in anticipation of July–August deliveries, while strengthening rebar interest may provide further price support,” a market insider told SteelOrbis.