Following several deals for bulk scrap in Bangladesh last week, the traditional slow month of Ramadan has kept Bangladeshi scrap buyers cautious this week, owing to limited working hours and liquidity issues. In the containerized scrap segment, business activity has also been rather slow this week, and some suppliers have even increased their offer prices to Bangladesh.
Accordingly, after several weeks of silence, last week Bangladeshi scrap importers resumed bulk scrap purchases, achieving lower prices in new deals. In particular, two ex-US mixed bulk cargoes of shredded 211 scrap and HMS I/II 80:20 scrap were booked at an average price of $675/mt CFR Chittagong at the end of last week, for delivery in May, down by $5/mt week on week. Meanwhile, new ex-US bulk scrap offers are coming at $670/mt CFR, according to market insiders.
Meanwhile, in the containerized scrap segment, only occasional bookings have been heard lately. “Lately, the market is especially quiet, mostly due to Ramadan. Most buyers are going to start activity from the end of next week,” a Bangladesh-based trader told SteelOrbis. Offers for ex-UK shredded scrap in containers have been reported at $675/mt CFR, compared to $670-680/mt CFR last week, while ex-UK PNS scrap has been offered at $680/mt CFR, the same as last week. Besides, offers for ex-Brazil HMS I/II 90:10 scrap have been voiced at $640/mt CFR, up by $15/mt over the past week. Meanwhile, suppliers from Malaysia and Singapore have been offering shredded scrap at $670/mt CFR this week.
Major rebar producers in Bangladesh have kept their 10-16 mm rebar offers firm at BDT 85,000-88,000/mt ($986-1,020/mt) ex-warehouse, though workable price indications are heard to be lower this week. “High material costs and slow construction activities have continued to weigh on the rebar trade and consequently on scrap demand as well,” a market insider stated.
