The import scrap market in Bangladesh have continued to face numerous challenges, including restrictions on opening letters of credit (LCs), and the gas and power crises, coupled with still weak demand in the construction sector.
At the same time, import scrap offers to Bangladesh have declined slightly within the past week despite better sentiments in the Turkish market. Specifically, this week offers for ex-UK HMS I/II 80:20 scrap in constrainers have been reported at $415/mt CFR, down by $5/mt week on week, while offers for pacific origin HMS I/II 90:10 scrap, from Australia and Fiji in particular, have been voiced at $400-405/mt CFR levels. Offers for ex-UK shredded scrap in containers have settled at $440/mt CFR, the same as last week. “Bangladeshi mills have been struggling to open LCs for scrap purchases, while demand from end-users is very weak, and mills have cut back their production due to the energy crisis,” a market insider told SteelOrbis.
Meanwhile, in the bulk segment, indicative offers for ex-US HMS I/II 80:20 have been reported at $370-374/mt CFR, down by $10/mt week on week. No deals have been reported so far.