Bangladesh’s import scrap market has remained subdued over the past week, with prices declining further amid limited buying activity and persistently weak finished steel demand. Although some fresh bookings of competitively priced material from Southeast Asia and Brazil have been reported, mills have continued to purchase selectively and mainly to cover immediate requirements. At the same time, the recently announced 17 percent increase in electricity tariffs has placed additional pressure on steelmakers’ production costs and margins, SteelOrbis learned from trade and industry circles on Thursday, July 16.
More specifically, ex-UK shredded scrap in containers have been offered at around $392/mt CFR Chattogram this week, down from the deal level of close to $400/mt CFR Chattogram heard last week. Meanwhile, ex-UK HMS I/II 80:20 scrap in containers has been indicated at around $360/mt CFR Chattogram, compared to offers at around $375/mt CFR Chattogram last week. Other market indications for HMS I/II 80:20 scrap in containers have been heard at $365-370/mt CFR Chattogram, though buying activity has remained limited. “Bangladeshi scrap prices have gone down by another $5/mt, but activity is still low,” a source in the market told SteelOrbis.
In terms of other origins, 3,000 mt of ex-Philippines GI bundles have been sold at around $330/mt CFR Chattogram, with the booking heard on Friday, July 10. In addition, 500 mt of ex-Malaysia GI bundles have been sold at $325/mt CFR Chattogram. These levels compare with offers for ex-Philippines GI bundles at around $340/mt CFR Chattogram heard last week, indicating that buyers have continued to secure discounts for selected cargoes.
Meanwhile, 1,000 mt of ex-Brazil HMS I/II 80:20 scrap in containers have been sold at $345/mt CFR Chattogram, down from the $355/mt CFR deal level reported last week. In the bulk segment, ex-US HMS I/II 80:20 scrap has been indicated at around $388/mt CFR Chattogram, while offers for the same grade have also been heard at as high as $400/mt CFR Chattogram. In addition, PNS scrap has been offered at $420/mt CFR Chattogram. The persistent gap between sellers’ offers and buyers’ workable levels has continued to restrict fresh bulk trading activity.
As for ex-Japan material, H2 scrap in bulk has been heard at around $380/mt CFR Chattogram. However, no fresh concluded deal has been confirmed at this level at the time of writing.
In the meantime, the local Bangladeshi market has remained under pressure from sluggish finished steel sales, rising electricity costs and monsoon-related disruptions to construction activity. Steelmakers have therefore remained cautious about rebuilding scrap inventories despite the recent decline in import prices, while most purchases have continued to be limited to immediate production requirements. “The market is really quiet, with almost no offers heard at present. Due to the monsoon season, buyers are not making enquiries for fresh bookings, though purchasing activity may start to recover towards the end of July,” a source in the market told SteelOrbis.
$1 = BDT 123.26
