Bangladesh’s import scrap market has remained under pressure over the past week, with prices moving down further amid slow buying, weak finished steel demand and expectations that import scrap prices may still soften. SteelOrbis learned from trade and industry circles on Thursday, July 9.
The SteelOrbis reference price for shredded scrap in containers in Bangladesh has decreased by $6/mt on average over the past week to $390-400/mt CFR.
More specifically, ex-UK shredded scrap in containers has been sold at close to $400/mt CFR Chattogram this week, mainly unchanged compared to the deal level heard last week, but ex-EU shredded scrap in containers has been assessed at around $396/mt CFR Chattogram, down by around $4/mt compared to last week. As for ex-Australia material, shredded scrap in containers has been sold at $390/mt CFR Chattogram this week, while offers had been reported at around $400/mt CFR earlier in the week. “Business is a little bit slow now. After the new budget, we hope business will improve in August and September,” a source in the market told SteelOrbis.
Ex-UK HMS I/II 80:20 scrap in containers has been offered at around $375/mt CFR Chattogram, while for ex-EU HMS I/II 80:20 scrap in containers market indications point to a decline of around $5/mt compared to last week’s assessment of around $370/mt CFR Chattogram. According to market sources, overall activity for UK/EU material remains limited, with most buyers still expecting prices to soften further in the coming days.
Meanwhile, ex-Australia/New Zealand HMS I/II 80:20 scrap prices have been indicated at around $375/mt CFR Chattogram, with buyers’ interest reported at around $360-362/mt CFR. Market sources have indicated that mills are mostly observing the market, expecting prices to soften further following the recent decline in global oil prices.
In terms of other origins, ex-Brazil HMS I/II 80:20 scrap in containers has been booked at $355/mt CFR Chattogram this week, lower than offers at $365-368/mt CFR heard at the beginning of the week and compared to $365-370/mt CFR recorded last week. Ex-Brazil HMS I/II 90:10 scrap has been offered at $375-380/mt CFR Chattogram, while ex-Brazil shredded scrap has been offered at $390-395/mt CFR Chattogram, compared to $395-405/mt CFR last week. In addition, ex-Philippines GI bundles have been offered at around $340/mt CFR Chattogram, though buying enquiries from major mills in Dhaka and Chattogram have remained limited amid expectations of a further price softening.
In the meantime, the local Bangladeshi market has remained weak, with finished steel demand still slow during the rainy season. According to sources, mills are currently planning ahead for a possible improvement in rebar demand after the monsoon season, as winter usually brings stronger construction activity. However, immediate market sentiment has remained cautious, with steelmakers still limiting scrap purchases amid weak sales and uncertainty following the recent budget announcement. According to a local source, the recent fiscal changes have not yet been reflected in local market prices. Local rebar prices have been heard at around BDT 80,000-90,000/mt ($649-730/mt) ex-works, depending on the brand, while local scrap prices have been confirmed at BDT 52,000-53,000/mt ($422-430/mt) ex-warehouse.
$1 = BDT 123.32
