Import scrap prices for both containerized and bulk scrap in Bangladesh have increased sharply over the past two weeks, with offers and deal prices moving up amid rising freight costs and firmer sentiment in the key supplying markets. Buying activity has remained selective, as mills have continued to resist the higher levels despite the overall upward direction in the market.
Offers for ex-EU/UK shredded scrap in containers have been voiced at $390-395/mt CFR, up by $17-20/mt over the past two weeks, while offers for ex-EU HMS I/II 80:20 scrap have settled at $370-375/mt CFR, up by $15-20/mt over the same period. Some suppliers have also voiced shredded offers at $400/mt CFR, though no takers have been heard at that level so far, while workable bids for ex-EU HMS I/II 80:20 scrap have been reported at around $365/mt CFR, according to sources.
At the same time, a few deals for small volumes for ex-Australia shredded scrap have been heard at $385/mt CFR, up by around $5/mt over the past two weeks, while HMS I/II 80:20 scrap has been reported at $365/mt CFR, up by $5/mt over the same period.
As for other origins, according to sources, offers for ex-Brazil HMS I scrap have been voiced at $380-385/mt CFR, while a few deals for HMS I/II 90:10 scrap are reported to have been signed at $365/mt CFR last week and at $385/mt CFR this week. Meanwhile, offers for ex-Singapore PNS scrap have been reported at $400-410/mt CFR, up from the confirmed deal level of $383/mt CFR heard two weeks ago.
In the meantime, in the bulk segment, Bangladesh is reported to have booked around 20,000 mt of ex-Japan H2 scrap through the Kanto export tender. In the Kanto tender, the highest bid was at JPY 50,121/mt ($316/mt) FAS, JPY 2,038/mt higher than last month, while the dollar-based price increased by $3/mt from $313/mt FAS. The FAS level translated to JPY 51,121/mt FOB or $323/mt FOB, up by $4/mt from last month. According to market sources, the deal price has been estimated at around $390-395/mt CFR Bangladesh.
Furthermore, offers for ex-Japan H2 scrap have been heard at $390/mt CFR, up by $35-40/mt compared to two weeks ago, while ex-US HMS I/II 80:20 scrap has also been heard at $390/mt CFR, up by around $35/mt over the same period. Market sources have indicated that the sharp increase in bulk prices has been driven largely by freight costs, with freight from Japan to Bangladesh rising from around $45/mt to over $70/mt.