Although Bangladesh’s steel sector has continued to face weak demand during the Ramadan period, compounded by the slow progress of infrastructure developments, more deals for import scrap in containers have been confirmed given the sharp rise in prices over the past two weeks.
More specifically, offers for ex-EU/UK shredded scrap in containers have been voiced at $390-395/mt CFR, compared to $380/mt CFR two weeks ago. Besides, according to sources, while offers for ex-Australia shredded scrap have settled at $390/mt CFR, up by $10/mt over the past two weeks, a deal for around 3,000 mt of scrap has been signed at $385/mt CFR this week. Besides, another deal for 4,000 mt of ex-Australia HMS I/II 80:20 scrap has been signed at $360-365/mt CFR this week, while new offers have been voiced at $370/mt CFR level.
Furthermore, market insiders reported several deals for ex-Hong Kong PNS scrap at $390-395/mt CFR this week, while offers for ex-Singapore PNS scrap have been voiced at $395/mt CFR, up by $5/mt over the past two weeks.
In the bulk segment, however, trade activity has still been close to zero, though prices for ex-US HMS grade scrap have increased as well, reaching $380-385/mt CFR, versus $365/mt CFR two weeks ago. Besides, offers for ex-Singapore HMS grade scrap have settled at $375/mt CFR, up by $5/mt over the period under review.
“In response to weak demand, producers are running their plants at reduced capacity to limit operational expenses. Some mills have resorted to selling at reduced or even loss-making margins in order to sustain cash flow and keep production lines active,” a market insider told SteelOrbis.
“With the Eid holiday set to begin in the final week of March, market activity is likely to come to a temporary standstill, and steel consumption is expected to stay subdued. A slow pickup is projected to begin from mid-April as businesses reopen and deferred buying gradually returns,” another source said.