The limited scrap supply in the import scrap market in Bangladesh, which has come even worse lately, has continued to push up prices. Price increase has been fixed in the latest containerized scrap sales, but customers are hesitant to book expensive bulk scrap.
Offers for HMS I/II 80:20 by bulk have been at $500/mt CFR Bangladesh this week against a deal reported in the middle of the month at $410/mt CFR for this grade, SteelOrbis learned. Bids from customers are still lagging behind, but if last week market participants reported the tradable value at around $460/mt CFR, this week this level is assessed at $480-500/mt CFR. One trading source said that the offer volumes are lower and they are expected to go down even more in coming weeks amid strong demand in such destinations as Turkey and winter impact on collection of scrap in the major exporting countries.
In the containerized scrap segment, prices have added $20-25/mt over the week. A deal for 1,000 mt of ex-Australia shredded scrap in containers has been done at $460/mt CFR, which is about $15/mt up from last week’s tradable price level. Moreover, offers from the US for shredded scrap have already been at $470/mt CFR.
In total 5,500 mt of HMS I/II 80:20 and HMS I/II 90:10 from the UK and Chile have been traded at $453/mt CFR and $455/mt CFR respectively. Just early this week a few deals for HMS I/II 80:20 from Brazil and Chile were signed at $430-435/mt CFR.
“Local scrap prices also increased by $10/mt up to $20/mt,” a Bangladesh-based trader said.