Bangladesh’s import scrap market has remained slow this week, but buying activity has started to revive after the Eid holiday and will improve further next week. Some fresh deals have been heard this week at slightly lower levels, but most mills have remained cautious and the trend has not settled so far.
More specifically, ex-EU containerized HMS I/II 80:20 scrap has been offered at $384-390/mt CFR Chattogram this week, down from around $395/mt CFR heard two weeks ago, while ex-EU containerized shredded scrap has been offered at $413/mt CFR Chattogram, slightly below the $415/mt CFR level recorded two weeks earlier. In terms of concluded deals, 1,000 mt of Denmark origin HMS I/II 80:20 scrap have been booked at $390/mt CFR Chattogram. Market sources have indicated that ex-EU/UK containerized scrap prices have moved slightly lower compared to pre-Eid levels, though the market has not shown any clear trend yet. “We have been constantly watching the market and have not seen any positive movement. Overall, current market sentiment is the same as before the Eid holiday started,” a Bangladesh-based scrap trader told SteelOrbis, adding that Thursday was the last working day of the week and that positive buying activity is expected from next week.
As for ex-Australia material, 2,000 mt of shredded scrap have been sold at around $410/mt CFR Chattogram this week, compared to offers at $420-425/mt CFR heard two weeks ago. In addition, ex-Australia/New Zealand HMS I/II 90:10 scrap has been offered at around $405/mt CFR Chattogram, down from $415-420/mt CFR heard two weeks earlier. Market participants have stated that buyers are still cautious, but some mills have been willing to book selected cargoes at workable levels, especially from origins offering shorter shipment times.
In terms of other origins, 1,000-1,200 mt of ex-Thailand NTP scrap have been sold at around $412/mt CFR Chattogram, while 2,000 mt of ex-Thailand tin-free bundles have been sold at around $425/mt CFR Chattogram. In addition, market rumors have indicated that 2,000 mt of US origin shredded scrap may have been sold at $410/mt CFR Chattogram, though no confirmation has been received by the time of writing. Fresh inquiries have also been heard from a regular Bangladeshi buyer for 3,000 mt of ex-Singapore PNS scrap, 2,000 mt of ex-Malaysia PNS scrap and 3,000 mt of shredded scrap, while ex-Malaysia PNS scrap has been indicated at around $435-440/mt CFR Chattogram, with some room for negotiation. Meanwhile, ex-Hong Kong PNS scrap has remained largely unviable for Bangladeshi buyers due to high freight costs, with freight from Hong Kong to Chattogram heard at around $2,200/20’.
As for ex-Japan material, H2 scrap has been offered at $420-425/mt CFR Chattogram this week, though buyers’ bids have remained well below these levels. No fresh transactions have been confirmed so far, as Bangladeshi buyers continue to resist higher import prices amid weak domestic finished steel demand and the slow post-Eid trading environment.
Meanwhile, the local Bangladeshi market has remained soft, affected by weak finished steel demand, mills’ cautious sentiment and limited construction activity during the holiday period.
$1 = BDT 122.72
