Although market activity has been gradually improving in Bangladeshi as rebar demand begins to pick up in key consumption hubs, industry participants remain cautious, anticipating only a modest post-Eid revival. At the same time, scrap prices are showing signs of a mild rebound amid the ongoing global market uncertainty.
More specifically, offers for ex-EU/UK shredded scrap in containers have been estimated at around $390-395/mt CFR, mainly the same as in early April. Besides, according to sources, while offers for ex-Australia shredded scrap have settled at $385-390/mt CFR, the same as two weeks ago, offers for HMS I/II 80:20 scrap have been voiced at $365-370/mt CFR this week, up by $5/mt over the past two weeks. Furthermore, offers for shredded scrap from Malaysia and Singapore have been assessed at $400/mt CFR, up by $5/mt since the beginning of April.
Meanwhile, market insiders have reported offers for ex-Hong Kong PNS scrap at $390-395/mt CFR, the same as two weeks ago, though tradable prices have been estimated at $385-390/mt CFR levels.
In the bulk segment, however, trade activity has remained weak, with prices for ex-US HMS grade scrap estimated at $380/mt CFR, versus $380-385/mt CFR two weeks ago.
“Market sentiment in Bangladesh was weighed down by uncertainty surrounding the Hong Kong Convention (HKC) compliance deadlines as compliance with HKC regulations affects how and where ships can be dismantled. When compliance deadlines approach or are unclear some shipyards may pause operations or limit activity, supply of scrap from shipbreaking may tighten and market participants may hold back due to regulatory uncertainty,” a market insider told SteelOrbis.
“The inflow of imported scrap has slowed recently, prompting Dhaka-based buyers to turn more to domestic supply. Larger mills, having sufficient inventories, are refraining from aggressive buying. Despite better rebar sales, domestic scrap purchase prices may face downward pressure,” another source said.