Although the problems with opening letters of credit (LCs) have been persisting in Bangladesh, this week market insiders have reported more deals for containerized scrap at higher levels as well as a fresh deal for ex-Australia bulk scrap, following a very long pause in bulk bookings.
Accordingly, a deal for a mixed ex-Australia scrap cargo has been booked this week at $498/mt CFR for 14,000 mt of bonus scrap, at $488/mt CFR for 13,000 mt of HMS grade scrap and at $478/mt CFR for 3,000 mt of heavy chips scrap. Meanwhile, according to sources, offers for ex-US HMS grade scrap in bulk have been reported at $495/mt CFR, up by $30-35/mt over the past week.
In the meantime, this week Bangladeshi customers have also reported more deals for containerized scrap at higher prices. In particular, a deal for around 2,000 mt of of ex-Brazil HMS I/II 80:20 scrap has been done at $465/mt CFR, while offers for ex-Brazil shredded scrap have settled at $505/mt CFR, up by $10/mt week on week. Besides, market insiders have reported more purchases for ex-UK and ex-Hong Kong PNS scrap at $505-510/mt CFR and some at $520/mt CFR level, up by around $10-20/mt week on week.
At the same time, offers for ex-UK shredded scrap in containers have been voiced at $505-510/mt CFR, versus $485-490/mt CFR last week.
“Now Bangladeshi buyers are observing further updates from Turkey, to evaluate the risks of buying at higher levels,” a market insider told SteelOrbis.