The Bangladeshi import scrap market has been facing limited activity, with sentiment weighed down by high freight costs, weak steel prices and the approaching Eid holiday. According to sources, while domestic scrap trades are still taking place, importers remain cautious, avoiding major bookings in the face of uncertain economic and market conditions.
This week, import scrap prices have remained mostly stable, but the broader market has shown little appetite for new scrap purchases and especially for bulk cargoes. According to sources, while most offers for shredded scrap in containers from the EU and Australia have been voiced at $380-385/mt CFR, mainly the same as last week, with a deal for around 1,000 mt of ex-Australia material reported to have been signed at $380/mt CFR. Besides offers for ex-Australia HMS I/II 80:20 scrap has been heard at $350-355/mt CFR this week, compared to the deal price at $352/mt CFR reported last week.
Offers for PNS scrap from Hong Kong have been voiced at $390-395/mt CFR, the same as last week, but, according to sources, Hong Kong-to-Bangladesh freight rates have climbed to their highest point on record.
Meanwhile, offers for ex-US HMS grade bulk scrap have been estimated at around $355/mt CFR, mainly the same as last week, while offers from Australia for HMS grade and shredded scrap have been voiced at $355/mt CFR and $375/mt CFR, respectively.
“Mills in Chattogram are reported to be quiet, with sufficient inventories on hand, reducing the urgency for fresh raw material purchases,” a market insider told SteelOrbis, adding, “For several months, Bangladesh has exhibited weak demand in the bulk scrap market as the country grapples with a sluggish economy, limited government spending and stalled infrastructure projects. As a result, volumes that would typically be destined for Bangladesh are increasingly being diverted to India.”
Looking ahead, market activity is expected to slow further due to the Eid vacation, scheduled on June 5–15, with subdued trading likely to continue until late June. Additionally, buyers are holding back ahead of the national budget announcement in June, while logistical issues -especially ongoing freight disruptions from Hong Kong - will likely continue to put pressure on import decisions.