Customers in Bangladesh have been more willing to purchase import scrap this week, as exporters have cut prices further. Two mills have resumed buying bulk ex-US scrap after a big pause and a number of containerized scrap contracts have also been reported in the market.
According to market sources, two deals for ex-US scrap were concluded to Bangladesh early this week. Initially, negotiations were held at $460/mt CFR for HMS I/II 80:20, but transactions have been finalized at lower levels. In one contract, ex-US HMS I/II 80:20 was priced at $453/mt CFR, while shredded scrap was transacted at $458/mt CFR. In another booking, the price for HMS I/II 80:20 was $455/mt CFR, while that for shredded came to $460/mt CFR. Up to 60,000 mt of scrap were booked in these two deals.
Suppliers were offering at $470/mt CFR in early March, which means prices have been lowered by $15-17/mt to conclude deals. Sources have said that mills have been in the market to buy for a few weeks already and that they have been waiting for better prices.
In the container scrap segment, the tradable price level for shredded scrap has fallen further by $10/mt compared to early this week to $455-460/mt CFR, with some deals done. Ex-Australia HMS I/II 80:20 in containers has already been booked at $440/mt CFR this week, down by $10/mt week on week, while buyers have been bidding not above $435/mt CFR late this week.