Trading activity in the import scrap market in Bangladesh has continued to lack strength amid still weak end-user demand, even though market insiders have reported an easing as regards the opening of letters of credit. Apart from small containerized bookings from Europe, there was a deal for ex-Japan bulk scrap, but no movement has been seen in ex-US trading.
More specifically, offers for ex-UK shredded scrap in containers have been voiced at $455-460/mt CFR, versus $460/mt CFR last week. No deals have been reported for shredded scrap, though market insiders have booked around 2,500 mt of ex-Malaysia PNS scrap at $455/mt CFR, sources said. Offers for ex-UK PNS scrap have been heard at $465/mt CFR, while ex-UK HMS I/II 80:20 scrap has been offered at $420-425/mt CFR, down by $5-10/mt over the past week. “There are rumours that Bangladeshi customers have booked ex-Australia shredded scrap at around $445/mt CFR, but this may be some distressed sale if it’s true as many traders are holding positions,” an international trader told SteelOrbis.
In the bulk segment, a booking for 15,000 mt of ex-Japan H2 scrap in the Kanto Tetsugen export tender has been made at JPY 48,167/mt ($345.5/mt) FAS, increasing by JPY 1,994/mt, with dollar-based quotations increasing by only $4.5/mt since last month, given the appreciation of the Japanese currency recently. The price translates to around $405-410/mt on CFR basis.
Bulk offers for ex-US HMS grade scrap have remained at $420/mt CFR, the same as last week, though no fresh deals have been reported so far.