The import scrap market in Bangladesh has remained silent this week, while mills have been busy in establishing letters of credit (LCs) for older contracts. Besides, long steel production has been reduced and sales remain under pressure.
More specifically, offers for ex-EU/UK shredded scrap in containers have been voiced at $400/mt CFR level, up by $10/mt week on week, while offers for ex-Australia shredded scrap have settled at $400-410/mt CFR, mainly the same as last week. However, according to sources, several deals for ex-EU shredded scrap have been signed at $390/mt CFR levels.
Offers for ex-EU HMS I/II 80:20 scrap have been voiced at $380-385/mt CFR, up by $5/mt on the lower end of the range week on week. Besides, according to sources, a deal for around 2,500 mt of HMS I/II 80:20 scrap from Australia has been signed at $370-372/mt CFR levels.
Furthermore, according to sources, a deal for 1,000 mt of ex-Hong Kong PNS has been reported at $430/mt CFR Chattogram.
In the bulk segment, indicative offers for ex-US HMS grade scrap have been estimated at $385/mt CFR, the same as last week, while shredded scrap offers have been assessed at $400/mt CFR. Offers for ex-Japan H2 scrap have been heard at around $370/mt CFR.
“High inventory levels are keeping buyers cautious, with only limited demand growth expected this winter as construction activity remains sluggish. Given the revised GDP forecast and ongoing political instability, substantial market improvements appear unlikely,” a Bangladeshi trader told SteelOrbis.