Trade activity in the import scrap market in Bangladesh has been lacking strength amid continued issues with opening letters of credit (LCs). Thus, apart from occasional small containerized bookings, at mainly the same levels as last week, no fresh deals have been reported for scrap in bulk so far.
More specifically, in the containerized segment, offers for ex-UK/EU shredded scrap have remained unchanged at $440/mt CFR. Meanwhile, ex-UK PNS scrap offers have been heard at $455/mt CFR, same as last week, while the same materials from Hong Kong have been offered at $460/mt CFR, up by $10/mt week on week. Besides, sources estimate ex-UK HMS grade scrap price offers at around $430/mt CFR, though some believe deal price could be at $400/mt CFR level if Bangladeshi buyers manage to open LCs. “Several small deals have been heard this week especially from Australia and Hong Kong at mainly same prices as last week, as small mills in Dhaka need to buy limited quantities,” a market insider said.
Meanwhile, no fresh deals for scrap in bulk have been reported in Bangladesh this week, with the indicative offers for ex-US HMS grade scrap standing at around $410/mt CFR, same as last week. “In fact, there is no movement here in Bangladesh at all as central bank paused LCs opening. If LCs can be opened then I think it will be possible to negotiate at $390/mt CFR for ex-US HMS scrap,” a Bangladeshi trader told SteelOrbis.