Following numerous bookings for import scrap in bulk in previous weeks, customers in Bangladesh have slowed down their import scrap purchases in bulk significantly this week, expecting to get lower prices in the coming period. Prices in both the bulk and container segments have shown declines over the past week, but bids have dropped even more.
Specifically, after a deal at $490/mt CFR to Bangladesh for bulk cargo last week, market sources have been estimating the current level for bulk ex-UK/EU HMS I/II 80:20 at $420/mt CFR. But this is an indicative level and market insiders expect that next week will bring more clarity and activity to the market.
Meanwhile, offer prices for ex-UK shredded scrap in containers in Bangladesh have been voiced at $525-530/mt CFR, down by $20-25/mt week on week, with a few deals signed at abovementioned level. Offers for ex-UK HMS I/II 80:20 scrap have been heard at $510/mt CFR, compared to $510-530/mt CFR last week, while a deal for 2,000/mt of ex-UK HMS I/II 80:20 has been reported at $480/mt CFR this week. At the same time, two deals for a total of 3,000/mt of ex-South Africa PNS scrap have reportedly been signed at $520/mt CFR this week, down by $30/mt week on week.
“Some mills are buying limited volumes to keep the wheel running and there is no firm price for scrap in containers. It is in the negotiation process,” a market insider told.