Import scrap prices in Bangladesh have shown a mixed trend over the past week, with containerized scrap prices increasing by around $10/mt compared to early March levels, mainly supported by higher freight costs and limited supply, while the bulk segment has remained broadly unchanged. Buying activity has stayed subdued as mills have remained on the sidelines ahead of the holidays, adopting a wait-and-see approach. Overall sentiment has remained firm but cautious.
Offers for ex-EU HMS I/II 80:20 scrap in containers have been heard at $385-395/mt CFR Bangladesh this week, up from around $370-375/mt CFR heard two weeks ago, while a deal for ex-EU HMS I/II 90:10 scrap has been reported at $397/mt CFR. Meanwhile, offer prices for ex-EU shredded scrap in containers are reported at around $400-405/mt CFR Chittagong. Overall, the market has shifted upwards by around $10-20/mt, in line with stronger freight rates and tighter supply.
Besides, offers for ex-Malaysian PNS scrap for April shipment have been indicated at around $410-415/mt CFR Chittagong, though sellers are still waiting for revised freight levels for April cargoes. Market participants expect a clearer direction once freight is finalized. “A clearer picture of the market is expected to emerge only after the Bangladeshi market reopens on Monday,” a Bangladeshi trader told SteelOrbis.
In the bulk segment, ex-Japan H2 scrap prices have been heard at around $390/mt CFR Bangladesh, mainly the same as two weeks ago, while ex-US HMS I/II 80:20 bulk scrap has also been heard at around $390/mt CFR, unchanged over the same period. Overall, the bulk segment has remained stable, with price levels broadly unchanged compared to two weeks ago.
In the meantime, according to sources, a booking of ex-Australia HMS I/II 80:20 scrap in bulk has been heard at $385-387/mt CFR Chittagong for a cargo of around 28,000 mt. “Due to higher freight from the EU, buyers have shifted to Australia/New Zealand-origin shredded cargoes because of lower freight costs and shorter transit times,” a market source told SteelOrbis.
Meanwhile, the local Bangladesh market has remained relatively stable, with sentiment cautious due to weak downstream demand and limited buying activity during the holiday period. Local rebar prices have been reported at BDT 90,000-95,000/mt ($734-774/mt) ex-works, up from around BDT 80,000/mt ($652/mt) ex-works reported on February 19, while local scrap prices have been heard at BDT 56,000-59,000/mt ($456-481/mt) ex-warehouse, up from around BDT 52,000/mt ($424/mt) ex-warehouse reported on the same date.
$1 = BDT 122.57
