This week, most offers for import scrap in Bangladesh have remained relatively stable, though a number of suppliers have decided to go slightly lower, while bids have continued to decline even further given the sluggish demand in the country. At the same time, restrictions related to letters of credit (LC) have added to buyers' concerns, further suppressing interest in containerized scrap, while bulk offers from the US have seen limited interest in Bangladesh, as the main scrap consumers believe they can maintain sufficient inventories until December. The declining demand for long steel products, which rely heavily on scrap, has also led to fewer new inquiries.
More specifically, offers for ex-EU/UK shredded scrap in containers have been voiced at $390-395/mt CFR, down by $10/mt week on week, while offers for ex-Australia shredded scrap have settled at $400-410/mt CFR, mainly the same as last week. According to sources, several deals for ex-Australia shredded scrap have been signed at $400-405/mt CFR levels, though a few deals have been also reported at $408/mt CFR.
Offers for ex-EU HMS I/II 80:20 scrap have been voiced at $380/mt CFR, down by $5-10/mt week on week, while offers for ex-Australia HMS I/II 90:10 scrap have stayed at $390-395/mt CFR, with bids at the $380/mt CFR level.
Suppliers from Hong Kong and Malaysia have been offering PNS scrap at around $410-415/mt CFR, against $415/mt CFR last week.
In the bulk segment, indicative offers for ex-US HMS grade scrap have been estimated at $385-388/mt CFR, down by $3/mt on the higher end of the range week on week, while shredded scrap offers have been assessed at $400/mt CFR and slightly above. Offers for ex-Japan H2 scrap have been heard at around $370-380/mt CFR, the same as last week.
According to sources, demand for imported scrap in Bangladesh is likely to remain low, with a possible uptick expected in late November as major steel mills start restocking for their approaching production periods.