New import offers for scrap in Bangladesh have halted their decreasing trend this week, with some offers posting even a slight increase, especially in the containerized segment, following the price drops seen in the import scrap market in the country in recent weeks. However, end-users in Bangladesh are very reluctant to accept an increase in deal prices, emphasizing their doubts over a further uptrend considering the recent situation in Turkey, and buyers’ resistance to higher offers in particular. Besides, end-user demand in Bangladesh leaves much to be desired so far.
Specifically, offers for ex-UK shredded scrap in containers have been voiced at $450-455/mt CFR, versus $450/mt CFR last week, while offers for PNS scrap of the same origin have increased to $460-465/mt CFR, up by $5/mt on the higher end of the range. Besides, offers for ex-Australia HMS I/II 80:20 scrap in containers have been reported at $430-435/mt CFR, up by $10/mt week on week. “Some deals for small batches have been booked this week, but, in general, the market prefers to wait as there are mixed sentiments, while demand is still very slow,” a market insider said.
Meanwhile, in the bulk segment, most offers have remained unchanged, though customers have continued to voice lower bids. Offers for ex-Australia HMS grade and shredded scrap have been voiced at $420/mt CFR and $425/mt CFR, respectively, the same as last week, while offers for bonus scrap have been heard at $430/mt CFR. Furthermore, according to some sources, offers for ex-US HMS grade scrap have been heard at $412/mt CFR, but no deals have been reported so far though. “Negotiations are underway, but yet we don’t have any official confirmation from the market,” a Bangladeshi trader told SteelOrbis.
Prices for local scrap in Bangladesh have been reported at around BDT 60,000-65,000/mt ($559-606/mt) ex-warehouse, the same as last week, while prices for domestic 10-16 mm rebar have settled at around BDT 96,000/mt ($895/mt) ex-works, down by BDT 4,000/mt ($37/mt) over the past two weeks.
$1 = BDT 107.26