Following several bookings for import scrap in bulk last week, customers in Bangladesh have slowed down their import scrap purchases and, according to sources, have been negotiating with suppliers to sign new contracts at a lower level.
Specifically, after a deal at $425/mt CFR for HMS I/II 80:20 and at $430/mt CFR for bonus scrap to Bangladesh last week, market sources have estimated the current level for bulk ex-US and ex-Europe HMS I/II 80:20 at around $410/mt CFR. “We got many offers but buyers are not willing to pay more than $410/mt CFR on average and so have not yet signed any deal,” a market insider told SteelOrbis.
Meanwhile, offers prices for ex-UK shredded scrap in containers in Bangladesh have been voiced at $475-480/mt CFR, compared to $475-490/mt CFR last week, with several small deals signed at $475/mt CFR this week. Offers for ex-UK HMS I/II 80:20 scrap have been heard at $450-455/mt CFR, the same as last week. Besides, offers for ex-Ireland HMS I/II 90:10 scrap have been voiced at $470/mt CFR Bangladesh.
“From early August, Bangladeshi scrap buyers expect to sign new deals for scrap in bulk, and at least two big contracts for around 60,000 mt have been actively discussed in the market, though there is no firm confirmation so far,” a market participant stated.