Bangladesh’s import scrap activity has gradually improved this week, though overall sentiment has remained cautious and prices have continued to stay on the lower side, SteelOrbis learned from trade and industry circles on Friday, June 12. Fresh bookings have been heard mainly for HMS scrap, while ex-EU/UK shredded scrap has remained largely unworkable for Bangladeshi buyers due to freight and price competitiveness issues.
More specifically, ex-EU/UK shredded scrap in containers have been indicated at around $405-415/mt CFR Chattogram this week, compared to offers at around $413/mt CFR Chattogram heard last week. However, no fresh concluded deals for ex-EU/UK containerized scrap have been heard in the market so far this week. Market sources have stated that ex-EU/UK shredded scrap is currently not feasible for Bangladesh, as workable levels are higher than what local buyers are prepared to pay. “There is some movement in buying activity in Bangladesh, but prices remain on the lower side,” a source in the market told SteelOrbis. Another market insider added that lower freight costs to Qasim port continue to make Pakistan a more attractive destination for ex-EU/UK suppliers, leaving Bangladesh largely priced out of the market for shredded scrap at current levels.
As for ex-Australia material, 500 mt of HMS I/II 90:10 scrap from Australia/Fiji/Papua New Guinea have been sold at $390/mt CFR Chattogram, compared to ex-Australia/New Zealand HMS I/II 90:10 offers at around $405/mt CFR Chattogram heard last week. The latest booking confirms a softer trend, with buyers still pushing for lower workable levels amid weak finished steel demand and cautious mill sentiment.
In terms of other origins, 1,000 mt of Malaysian origin HMS I/II 90:10 scrap have been sold at $390/mt CFR Chattogram, confirming that buyers’ interest remains concentrated mainly on competitively priced HMS cargoes. Meanwhile, ex-US West Coast HMS scrap has been offered at $405/mt CFR Chattogram, while containerized HMS scrap has been heard at around $390/mt CFR Chattogram and shredded scrap at $410-415/mt CFR Chattogram. As for Japan and Singapore, market sources have reported that no fresh offers have been heard this week.
Meanwhile, the local Bangladeshi market has remained under pressure from weak finished steel demand, cautious mill sentiment and tight liquidity conditions.
$1 = BDT 122.79
