Demand for ex-US deep-sea scrap cargoes has increased recently in Bangladesh. The customer has been able to get some discounts on initial offers, but in any case the level is much higher compared to last month. Japanese bulk scrap has also been in demand in Bangladesh in early August. The overall outlook is still positive.
One of the leading manufacturers in Bangladesh has booked 30,000 mt of scrap from the US West Coast, of which HMS I/II 80:20 scrap was priced at $295/mt CFR, while shredded was priced at $300/mt CFR. This indicates a $20/mt increase compared to the previous deep-sea deal done in mid-July, when 32,000 mt of shredded scrap from the US West Coast was traded at $280/mt CFR.
Offers for HMS I/II 80:20 scrap from the US are at $300/mt CFR and above and sources believe that this price level may be achieved soon. “Customers are active now, but this [the recent deal from the US] is on the lower end of the price range,” a trader said.
At the same time, a number of smaller bookings for 10,000 mt each at an average of Japanese H1/2 50:50 have been done at $285-290/mt CFR Bangladesh, sources have said.
