Bangladesh’s import scrap market has come under downward pressure this week, with some fresh bookings concluded after discounts, while overall sentiment has remained cautious amid weak finished steel demand, higher electricity costs and ongoing negotiations for lower workable levels.
More specifically, ex-EU shredded scrap in containers has been heard at around $405/mt CFR Chattogram this week, slightly below the $405-415/mt CFR Chattogram range heard last week. Some market sources have stated that buyers are still reported to be targeting $400/mt CFR Chattogram for shredded scrap.
Meanwhile, ex-EU HMS I/II 80:20 scrap in containers has been considered achievable at around $378/mt CFR Chattogram, compared to the $390/mt CFR Chattogram level heard last week. “The actual workable levels are slightly lower, with buyers asking for discounts of around $2-3/mt,” a source in the market told SteelOrbis.
As for ex-Australia material, 2,000 mt of shredded 211 scrap has been sold at $410/mt CFR Chattogram this week, compared to the latest available reference for the same grade, while 1,000 mt of shredded 211 scrap were sold at $412/mt CFR Bangladesh in mid-May.
In terms of other origins, 5,000 mt of PNS scrap from Singapore/Malaysia have been sold at $420/mt CFR Chattogram. Meanwhile, ex-Hong Kong PNS scrap has been offered at $445/mt CFR Chattogram, while ex-Chile HMS I/II 90:10 scrap in 20 ft containers has been offered at $405/mt CFR Chattogram.
As for Brazil, while offers for HMS I/II 90:10 scrap have settled at around $385/mt CFR Chattogram, while HMS I/II 80:20 scrap has been booked at $375/mt CFR Chattogram.
Meanwhile, the local Bangladeshi market has remained under pressure from extremely weak finished steel demand, with market participants reporting little real consumption and mills are struggling to stimulate sales despite efforts to maintain or increase ex-works prices. Electricity tariffs have risen by as much as 33 percent following the latest budget announcement, adding further pressure to producers’ operating costs, while concerns have also emerged regarding a potential increase in VAT on steel products. Despite these challenges, mills have continued to attempt price increases in the local finished steel market. At the same time, the ship-breaking sector has continued to perform strongly, supported by active purchasing interest from Indian and regional buyers, providing some support for the local scrap market.
Market sources have indicated that mills remain cautious regarding fresh import bookings, with buying decisions largely dependent on achievable discounts and the evolution of domestic steel demand in the coming weeks.
$1 = BDT 122.79
