Activity in Bangladesh’s import scrap market has remained slow over the past week, with offers mostly stable but buying interest subdued amid weak rebar sales, the approaching Eid ul-Adha holiday and higher freight costs. While some mills have ordered HMS cargoes from nearby sources, overall import activity has remained selective, with buyers resisting higher offers and suppliers facing difficulties in matching workable bid levels.
More specifically, ex-EU shredded scrap in containers have been offered at around $415/mt CFR Bangladesh this week, while ex-EU HMS I/II 80:20 scrap in containers have been offered at around $395/mt CFR, with both prices remaining broadly in line with the respective levels of $415-420/mt CFR and $385-395/mt CFR heard last week. No fresh concluded deals for ex-EU/UK containerized scrap have been heard so far, while the availability of offers has also remained limited. “The market is a little bit slow due to limited rebar sales. Offers are stable, but there are not so many offers in the market,” a source in Bangladesh told SteelOrbis.
As for ex-Australia material, shredded scrap has been offered at around $420-425/mt CFR Bangladesh this week, up from the latest level heard for the same origin at $412/mt CFR late last week. Meanwhile, PNS scrap of the same origin was booked late last week at $425/mt CFR, while HMS I/II 90:10 scrap offers have been heard at around $415-420/mt CFR. Market sources have indicated that higher offers have continued to face resistance from buyers, given slow finished steel sales and the holiday-related slowdown.
In terms of other origins, some Bangladeshi mills are reported to have ordered Singapore-origin HMS I/II 80:20 scrap at $425/mt CFR Bangladesh.
In the bulk segment, offers for US-origin HMS scrap cargoes have been heard at around $415/mt CFR, slightly above the latest indication for ex-US HMS I/II 80:20 scrap at $409-410/mt CFR heard on April 30.
Meanwhile, 500 mt of Philippines-origin GI bundles have been sold at $345/mt CFR Bangladesh. Market participants have stated that nearby and short-transit origins have continued to attract relatively more interest, while long-distance cargoes remain more difficult to transact. “Freight is a major issue since, due to higher freight, offers are on the higher side and bids are lower,” a trader told SteelOrbis, adding that higher freight on the Hong Kong-Chittagong route has also limited fresh offers to Bangladesh.
Meanwhile, the local Bangladeshi market has remained quiet, with most mills showing little interest in new bookings ahead of the Eid ul-Adha long holiday. According to market sources, the vast majority of steelmakers are expected to return to the market only after the holiday period, while fresh import scrap bookings are likely to remain limited to urgent requirements in the short term.
