Bangladesh’s import scrap market has seen prices move within a narrow band over the past two weeks, reflecting overall sluggish sentiment. Monsoon rains and subdued demand for finished steel have kept trading activity muted. Thus, market participation remains thin, with only occasional confirmed deals and most buyers staying on the sidelines.
Offers for shredded scrap from EU have been voiced at $367-370/mt CFR, mainly the same as two weeks ago. Besides, offers for ex-Australia shredded and HMS I/II 80:20 have been voiced at $365/mt CFR and $345/mt CFR, respectively, with a few deals reported to have been signed at these levels.
Besides, according to sources, a deal for around 1,000 mt of ex-Hong Kong PNS scrap has been signed at $373/mt CFR, versus $378/mt CFR two weeks ago. In addition, offers for ex-Singapore PNS scrap have settled at $375/mt CFR, down by $3-5/mt over the past two weeks.
In the bulk segment, offers for ex-US HMS scrap have been voiced at around $350/mt CFR, mainly the same as two weeks ago. Besides, indicative offers for ex-Japan H2 scrap have settled at $345-350/mt CFR, compared to $342-345/mt CFR two weeks ago.
At the same time, last week a deal for ex-Japan H2 scrap thorough Kanto tender was reported to have been signed by one of the Bangladeshi mills for a 20,000 mt batch at JPY 45,316/mt FOB or $297/mt FOB, up $6/mt compared to last month, which translates to around $357/mt CFR, as SteelOrbis reported earlier.
Most market insiders believe that activity in Bangladesh’s scrap market is likely to remain lacklustre. “Ongoing delays in construction activity continue to weigh on end-user steel consumption, prompting mills to adopt a cautious stance toward both imported and local scrap procurement,” a market insider told SteelOrbis. Besides, domestic scrap prices are expected to hold steady, while import trades may remain sporadic.
“Any notable rebound will depend on the quicker restart of infrastructure projects and renewed business confidence following the elections,” another source said.