With foreign scrap suppliers opposing lower prices to Bangladesh, Bangladeshi buyers have no other choice but to adapt to the current developments. Specifically, following a relatively long pause in bookings, Bangladeshi steelmakers have resumed bulk scrap bookings from the US West Coast. In particular, SteelOrbis has learned of three fresh bookings for at least 90,000 mt in total, consisting of HMS, shredded and bonus grade scrap. The transactions are said to be done at an average of $525-527/mt CFR Chittagong, with the HMS I/II 80:20 scrap price being estimated at $523/mt CFR Chittagong.
“We are observing a very weird market situation. Though big buyers have turned to bulk shipments, we are not sure about positive changes in the market. The local market for rebar and other finished steel products is still not good. Buyers’ confidence is down as prices went up very significantly,” a major trader commented with regard to the current market situation.
Meanwhile, trading of scrap in containers has remained limited due to the incessant challenges in seeking containers, with import prices of shredded scrap of European/UK origin in containers to Bangladesh having increased further. Specifically, this week offers have been voiced at $540-545/mt CFR, up $5-10/mt compared to levels valid at the end of August. Some suppliers have started testing the market with offers even at $550/mt CFR Chittagong. “Shredded prices are really high as Pakistan is paying $535/mt CFR, Bangladeshi small mills are unlikely to book at this level,” a trader stated. “The customers are seeking to pay $500/mt CFR Chittagong, which is unworkable. Consequently, activity remains poor,” another trader said, echoing the same sentiments.
In the meantime, the range of local rebar prices in Bangladesh has remained unchanged compared to the levels fixed in the end of August, at BDT 71,000-74,000/mt ($819-853/mt) ex-works Chittagong.