With increased expectations for a price recovery in Turkey, global scrap sellers appear to be becoming more bullish in Bangladesh, especially in the containerized segment, aiming to sell at higher prices later. At the same time, most Bangladeshi buyers have remained quite cautious in their bookings. Hence, deals have remained occasional.
More specifically, in the containerized segment, new offers for ex-UK/EU shredded scrap have been reported at $430/mt CFR Bangladesh, up by $10/mt week on week, while offers for shredded scrap from the US have been heard at as high as $440/mt CFR. Meanwhile, several small deals for ex-South America and ex-UAE HMS I/II 80:20 scrap have been reported at $410/mt CFR Bangladesh, versus offers at $400/mt CFR last week. However, a deal for ex-Australia HMS I/II 80:20 has been reported at $390/mt CFR, indicating the same price level as last week. Furthermore, according to sources, following a deal for around 1,000 mt of PNS scrap from Hong Kong at $435/mt CFR, new offers have already been voiced at $450/mt CFR.
Meanwhile, in the bulk segment, a booking for 15,000 mt of ex-Japan H2 scrap in the Kanto Tetsugen export tender has been made at JPY 49,799/mt ($347/mt) FAS, indicating a rise of JPY 59/mt, but in dollars the decrease was $3/mt due to the depreciation of the Japanese yen. The price translates to around $415-420/mt CFR. Apart from this, no new deals in bulk have been confirmed so far this week, with the latest deal for 32,000 mt from the US reported last week at $385/mt CFR for HMS I/II 80:20 scrap and at $390/mt CFR for shredded scrap. There has also been talk about a booking for an ex-Australia bulk cargo for around 32,000 mt in total at $382-386/mt CFR, but this information has not been confirmed by the time of publication.
“Bookings are very limited, and all are busy with previous contracts to fulfil. Now, since prices in Turkey have increased by a few dollars, all sellers shall ask $10-20/mt more in Bangladesh,” a market insider told SteelOrbis.
As SteelOrbis reported earlier, this week European scrap prices have increased in a new ex-Belgium deal in Turkey by $6/mt as compared to the previous ex-EU bookings, rising to $352/mt CFR for HMS I/II 80:20 scrap and $377/mt CFR for shredded and bonus grade.