Although limited end-user demand and financial constraints have continued to subdue the Bangladeshi scrap market, more deals for both bulk and containerized scrap have been reported in Bangladesh this week as local rebar mills have been focusing on restocking. Besides, while foreign suppliers for scrap in bulk have kept maintaining their prices at high levels, prices for containerized scrap have decreased in new deals.
Following quite a long pause in trade for scrap in bulk in Bangladesh, this week market insiders have reported a deal for 32,000 mt of ex-US scrap signed for HMS I/II 80:20 at $430/mt CFR, for shredded scrap at $435/mt CFR and bonus grade at $440/mt CFR. Meanwhile, most offers for ex-US HMS I/II 80:20 scrap have been voiced at around $430/mt CFR, while suppliers from Europe have been staying away from the Bangladeshi market this week.
Moreover, a booking for 15,000 mt of ex-Japan H2 scrap in the Kanto Tetsugen export tender has been made at JPY 51,316/mt ($349/mt) FAS, indicating a rise of JPY 1,517/mt, increasing by only $2/mt due to the depreciation of the Japanese yen from JPY 143.44 to the dollar to JPY 147.28 since August 9. The price translates to around $420/mt CFR Bangladesh.
Meanwhile, prices for containerized scrap have decreased slightly in new deals this week. In particular, according to sources, several deals for ex-Australia HMS I/II 80:20 scrap have been signed at $422-423/mt CFR, down by $2-3/mt week on week, though most ex-Australia offers have remained at $425/mt CFR. Furthermore, another deal for 5,000 mt in total of HMS and PNS scrap from the Middle East is reported to have been signed at $440/mt CFR.
Offers for ex-Australia and ex-UK shredded scrap in containers have decreased to $440-445/mt CFR, down by $10/mt over the past week, but no deals have been heard so far.
“The market will be relatively stable until the Turkish market shows some aggression on pricing,” a Bangladeshi trader told SteelOrbis.