Bangladeshi scrap market sees widening bid-offer gap, trade remains slow
The price gap between import scrap offers to Bangladesh and buyers' bids continues to widen this week, leading to sluggish trade activity. Market participants remain cautious, with buyers hesitant to match higher offer levels amid uncertain demand and price volatility. As a result, transactions have slowed, and the overall market sentiment remains weak as the construction sector grapples with extended sluggishness caused by delays and stoppages in government projects.
Offers for ex-Europe shredded scrap in containers have been voiced at voiced at $375-380/mt CFR. However, according to sources, most bids have been voiced at $370/mt CFR level. Besides, offers for ex-Australia shredded scrap have settled at $380/mt CFR, while bids stand at $370/mt CFR. According to sources, at least 3,000-4,000 mt of ex-Australia shredded scrap were booked at $375/mt CFR.
Meanwhile, suppliers from Australia have been offering HMS I/II 90:10 at around $370-372/mt CFR level, though Bangladeshi buyers have been bidding at as low as $355/mt CFR, according to sources.
Furthermore, offers for ex-Hong Kong and ex-Singapore PNS scrap have been reported at $390-392/mt CFR, mainly the same as last week, but buyers’ bids were reported at around $380-382/mt CFR. According to sources, several deals for ex-Singapore and ex-Malaysia PNS scrap have been signed at $388/mt CFR this week. Besides, another deal for ex-Malaysia busheling scrap has been signed at $380/mt CFR, sources said.
“Freight is high currently from Australia to Chattogram, so while buyers in Dhaka are showing some interest, customers in Chattogram maintain a cautious stance, or have been reducing their bids significantly, creating a wider gap between offers and bids,” a market insider told SteelOrbis, adding, “Australian suppliers are finding Indonesia a better market now. There are four to five big companies in Indonesia that buy premium grades.”
In the bulk segment, no fresh bookings have been reported so far, while indicative offers for ex-US HMS I/II 80:20 scrap have been estimated at $363-365/mt CFR, mainly the same as last week, while for shredded scrap offers have settled at $370-375/mt CFR. Offers for ex-Singapore HMS grade scrap in bulk have been voiced at $370-375/mt CFR.