Fresh bulk scrap deals done in Bangladesh at lower prices, muted interest in containerized scrap

Following quite a long lull in buying activity, Bangladeshi scrap customers have resumed bookings of bulk scrap. Specifically, two new bulk scrap bookings have been concluded to Bangladesh over the past week, with a significant price decrease compared to offers at the beginning of December. Meanwhile, buying interest in the segment of containerized scrap has remained weak, with customers not expected to return to the market earlier than January.

Accordingly, an ex-US mixed bulk cargo including 22,000 mt of shredded 211 scrap, 5,000 mt of bonus grade and 5,000 mt of HMS I/II 80:20 scrap was booked at an average price of $530/mt CFR Chittagong, for delivery in February. Another cargo of ex-Venezuela HMS I/II 90:10 scrap was booked at the same price, for delivery in January. The prices fixed in the abovementioned deals are around $30-35/mt lower compared to offers heard in early December.

Meanwhile, in the containerized scrap segment, only occasional bookings have been heard lately. “Big buyers will not accept the prices at which suppliers are aiming to sell now. For Bangladesh, it is actually cheaper to buy bulk now,” a major Bangladesh-based trader commented. “Lately, the market is especially quiet, mostly due to the year-end. Most of my listed clients are going to start activity from the second week of January 2022,” another trader stated. Around ten days ago, a lot of 1,000 mt for HMS I/II 90:10 scrap from Australia changed hands at $535/mt CFR Chittagong. A small lot of ex-Middle East HMS was booked last week at $530/mt CFR, SteelOrbis has learned. Overall, buying interest has continued to be constrained by the divergence between offers and bids. In particular, while most offer prices for ex-Europe shredded scrap have been voiced at $560/mt CFR Chittagong, down $5-10/mt over the past two weeks, Bangladeshi customers are seeking to pay not higher than $530-535/mt CFR. “Besides all, most Bangladeshi buyers are not in the market due to the bearish sentiments in the global scrap market, assuming there is still some room for a further decline in prices,” a Hong-Kong-based trader stated.