Bangladesh’s import scrap market has remained weak over the past seven days, with buying activity still limited amid cautious demand from mills. While containerized offers have moved within a narrow range and have remained broadly stable, lower-priced indications and deals have been heard in the bulk segment, depending on the origin and delivery period. Sentiments have remained under pressure from sluggish finished steel demand, monsoon-related disruptions, higher energy and freight costs, and buyers’ reluctance to commit to extended shipment periods. Compared to last week, the overall market direction has been largely stable to slightly softer.
More specifically, ex-EU HMS I/II 80:20 scrap in containers has been offered at $390-395/mt CFR this week, while ex-EU shredded scrap in containers has been offered at $415-420/mt CFR, broadly in line with the respective levels of $390/mt CFR and $410-413/mt CFR heard last week. No fresh concluded deals for ex-EU/UK containerized scrap have been heard in the market so far this week. “Buyers are very slow to respond to new bookings, and offer levels remain almost the same as last week. This situation is likely to continue unless tensions in the Gulf region ease,” a source in the market told SteelOrbis, adding, “Purchasing activity is usually slow during the May-July period due to heavy rain and the monsoon season.”
As for ex-Australia material, shredded scrap has been offered at $418-419/mt CFR, compared to a deal price at $408/mt CFR Chattogram heard last week, while HMS I/II 80:20 scrap has been offered at $415/mt CFR in bulk from Australia/New Zealand, compared to a deal price at $395/mt CFR reported last week. Market participants have indicated that buyers’ workable levels remain below sellers’ targets, while mills have continued to avoid aggressive bookings amid weak downstream sales and the extended delivery periods currently being discussed.
In terms of other origins, Brazil-origin HMS I/II 80:20 scrap has been offered at around $400-405/mt CFR this week, while Hong Kong origin PNS scrap has been heard at around $440/mt CFR, broadly in line with the $440-445/mt CFR levels recorded last week. However, according to traders, bids for Hong Kong material are still far below current offer levels.
In the bulk segment, Singapore-origin HMS I/II 80:20 scrap has been offered at $350-355/mt CFR, while HMS I/II 70:30 scrap has been offered at around $345/mt CFR. Meanwhile, a deal for around 18,000 mt of HMS I/II 80:20 and PNS scrap from Singapore has been concluded at $349/mt CFR and $362/mt CFR, respectively.
As for, higher-grade HS scrap and shindachi scrap have been offered at $370/mt CFR and $372-375/mt CFR, respectively. Market sources have stated that Japanese offers have come under pressure in line with weak buying interest in Bangladesh, while buyers are still trying to push for lower levels amid the slowdown in finished steel demand and the ongoing monsoon-related disruptions.
$1 = BDT 122.70