Bangladesh’s import scrap market has continued to face downward pressure amid ongoing monsoon-related disruptions and subdued demand for finished steel. Buying activity has remained limited, as mills adopt a cautious approach. Meanwhile, import scrap prices have slipped this week in select deals, highlighting buyers’ resistance to the prevailing offer levels. Without a revival in domestic construction or increased government infrastructure spending, scrap prices are expected to either soften further or hover within a narrow range.
This week, import scrap prices have declined again by at least $5/mt over the past two weeks. According to sources, most offers for shredded scrap in containers from Australia have been voiced at $370-375/mt CFR, against $375/mt CFR two weeks ago. Besides offers for ex-Australia HMS I/II 80:20 scrap have been heard $355/mt CFR, the same as two weeks ago, though most bids have dropped to $345/mt CFR, according to sources. Furthermore, offers for ex-Malaysia busheling scrap have been voiced at $380/mt CFR, down by $5-10/mt over the past two weeks.
In the bulk segment, a deal for ex-US scrap for at least 32,000 mt in total, have been signed at $345/mt for HMS I/II 80:20, at $350/mt CFR for shredded and at $355/mt CFR for bonus. However, offers for ex-US scrap have been reported $5/mt higher than deal prices.
In the meantime, offer prices for ex-Japan H2 scrap have settled at $340-345/mt CFR, down by $10-15/mt over the past two weeks, while offers for HS and shindachi scrap have settled at $370/mt CFR and $372-375/mt CFR, respectively.
Offers for ex-Singapore scrap in bulk have declined as well, by around $5/mt over the past two weeks, with offers for HMS I/II 80:20 scrap standing at $350-355/mt CFR, while offers for HMS I/II 70:30 scrap have been estimated at $345/mt CFR. According to sources, a deal for around 18,000 mt in total of ex-Singapore HMS I/II 80:20 and PNS scrap has been signed at $349/mt CFR and at $362/mt CFR, respectively.
“Sentiments are weak due to monsoon season as it has been raining continuously. Also, buyers are already looking for late August-early September shipments, which are far away and this makes current trade slow,” a Bangladeshi trader told SteelOrbis.