The import scrap market in Bangladesh still faces a shortage of containers, while import prices are down slightly.
Despite a resumption of operations at steel mills after the country’s lockdown which lasted one month, the import scrap market in Bangladesh has remained stymied by logistic issues. “We consider only ex-Singapore and ex-Malaysia offers now since there are no containers from other loading ports for Chittagong at this moment,” a major Bangladesh-based trader stated. “Massive scrap bookings have become very rare here in Bangladesh. The mission to find containers from any EU/UK port is getting harder every day,” another trader echoed.
Nevertheless, import scrap offers to Bangladesh have declined slightly within the past week following the weakening of fundamentals in the global scrap market. Specifically, this week more and more import offers for shredded in containers to Bangladesh have been heard at around $540/mt CFR Chittagong, versus $540-550/mt CFR Chittagong a week ago. Meanwhile, PNS scrap and bushelling scrap is said to be available at $540/mt CFR Chittagong and $565 CFR Chittagong, down $20/mt and $10/mt over the past week, respectively. Offers for HMS I/II 80:20 scrap have been voiced at $500-505/mt CFR Chittagong, down $5/mt over the past week. SteelOrbis has heard of a booking of a small lot (up to 1,000 mt) of ex-Australia HMS1 at $520/mt CFR Chittagong, down around $15/mt compared to offers a week ago.
Sources polled by SteelOrbis appear to be split in their views as regards the future price trends in the segment. Whereas some expect prices to move up in the coming weeks on the heels of the recovery of buying activity, others are convinced that prices have already reached their highest levels and not all scrap customers in Bangladesh can afford to accept them. “Now people are looking for September shipments and October arrivals. With the end of the monsoon season in September, the peak season will start in October,” a representative of the optimistic viewpoint commented.
Meanwhile, the range of local rebar prices in Bangladesh has widened to BDT 71,000-74,000/mt ($821-856/mt) ex-works, compared to BDT 71,000-72,000/mt ($822-833/mt) ex-works valid a week ago.