Import offers of bulk and containerized scrap to Bangladesh have started to move down ultimately, following the bearish outlook in the global scrap market. However, the rate of price decrease is still lagging behind the rate in the global market, mainly due to the existing freight costs, which remain at exorbitant high levels. In the meantime, having renewed the inventories in early September, most of Bangladeshi buyers have taken a wait-and-see stance.
In particular, currently, HMS scrap in bulk is said to be available in Bangladesh at $520/mt Chittagong, around $5-10/mt down from levels fixed in deals in the beginning of the current month. Meanwhile, shredded scrap is offered at $525-530/mt CFR. A deal for mixed cargo was chattered to be done at the abovementioned levels, however the information has not been confirmed by the time of publication. A transaction for ex-UAE mixed cargo of PNS and HMS scrap was done at $525/mt CFR Chittagong.
Meanwhile, offers HMS scrap in containers from the US and Europe have been voiced this week at $500/mt CFR Chittagong, with one ex-UK lot sold at $497/mt CFR. Prices of shredded scrap of European/UK origin in containers to Bangladesh have declined to $540/mt CFR versus $540-550/mt CFR voiced two weeks ago.