Import prices for scrap in Bangladesh have increased visibly over the past week, even despite customers not being very active in purchases given the depreciation of the national currency, letter of credit-related issues, and still weak local steel demand. Suppliers’ bullish mood and the positive outlook in Turkey have supported the trend.
Specifically, market sources have estimated the current level for ex-US HMS I/II 80:20 at $430/mt CFR, up by $20/mt week on week. However, according to some market insiders, most bulk scrap sellers are going to remain bullish and ask for $440/mt CFR on average for HMS grade, shredded and bonus scrap. At the same time, while no deals have been reported for ex-US and ex-Europe materials, there was information about a deal in bulk for 15,000 mt of Japanese H2 material booked at JPY 43,073/mt ($319/mt) FOB in the Kanto tender. “This deal is not totally confirmed, but the winning price translates to around $420/mt CFR Bangladesh,” a market insider told SteelOrbis.
Meanwhile, offers prices for ex-UK shredded scrap in containers in Bangladesh have been voiced at around $490/mt CFR, up by $10-20/mt week on week, though, according to some sources, the price is likely to increase in the short run. “I am hearing ex-UK offers at $485/mt CFR India, so offers to Bangladesh should be over $500/mt CFR,” an international trader said. Offers for ex-UK HMS I/II 80:20 scrap have been heard at $460/mt CFR, up by $5-10/mt over the past week.
In the meantime, the 10-16 mm rebar price in Bangladesh has been relatively stable this week and is available at BDT 80,000-84,000/mt ($847-890/mt) ex-warehouse.