Bangladesh's import scrap market has shown initial signs of strengthening over the past week, with European containerized scrap offers moving higher and a fresh mixed bulk cargo from Australia being booked. However, the firmer price indications have not yet translated into a broad recovery in purchasing activity, as mills have continued to focus on immediate requirements and competitively priced opportunities. SteelOrbis learned from trade and industry circles on Thursday, July 23, that market sentiment has remained guarded, although concerns that scrap prices may rise again amid renewed uncertainty in the Middle East have encouraged some buyers to return to the market. “Buyers appear to be anticipating a renewed increase in scrap prices due to the situation in the Middle East, and this has prompted a gradual resumption of purchasing activity,” a source in the market told SteelOrbis.
More specifically, ex-EU shredded scrap in containers has been offered at $400/mt CFR Chattogram this week. By comparison, the latest indication heard last week was for ex-UK shredded scrap at around $392/mt CFR Chattogram, pointing to a firmer overall trend in the ex-EU containerized segment. Meanwhile, ex-EU HMS I/II 80:20 scrap in containers has been offered at $366/mt CFR Chattogram, broadly within the $360-370/mt CFR Chattogram range reported last week for ex-UK and other European-origin material. According to market sources, however, workable prices for containerized shredded and HMS scrap are expected to remain slightly below the levels recorded in the latest Australian bulk booking.
As for ex-Australia material, a mixed bulk cargo comprising HMS I/II 80:20, PNS and shredded scrap has been booked at $385-390/mt CFR Chattogram, with the final price varying depending on the grade. Separately, ex-Australia HMS I/II 90:10 scrap in containers has been sold at $360-365/mt CFR Chattogram. At the same time, ex-Australia/New Zealand shredded scrap has been offered at around $380/mt CFR Chattogram in containers, below the price range of the recently concluded mixed bulk cargo. “Containerized shredded and HMS prices should be slightly below the levels of the Australian bulk cargo booked this week,” a source in the market told SteelOrbis.
In terms of other origins, Thailand-origin NTP bundles have been sold at $385/mt CFR Chattogram. Meanwhile, Central America-origin HMS I/II 80:20 scrap in containers has been heard at around $350/mt CFR Chattogram, providing Bangladeshi buyers with a more competitively priced alternative to European material.
As for ex-Japan material, unconfirmed market indications have suggested that H2 scrap in bulk has been available at around $390-395/mt CFR Chattogram, compared to approximately $380/mt CFR Chattogram last week. Nevertheless, no transaction has been verified at the time of writing, with Bangladeshi buyers continuing to show limited interest at the higher levels.
Meanwhile, conditions in Bangladesh's domestic steel market have remained challenging. Seasonal rainfall has continued to slow construction activity and finished steel sales, while elevated electricity costs have added further pressure on mills' margins. Against this backdrop, steelmakers have remained reluctant to rebuild inventories and have generally limited scrap procurement to volumes required for near-term production.
$1 = BDT 123.85
