This week started with lower import scrap prices in Bangladesh. Following a relatively long pause in bookings, Bangladeshi steelmakers have resumed bulk scrap bookings. In particular, SteelOrbis has learned of a fresh booking for around 30,000/mt in total, consisting of HMS and bonus grade scrap.
Accordingly, a deal for an ex-Australia/New Zealand 30,000 mt cargo in bulk has been reported this week, in which 12,000 mt of HMS I/II 80:20 was priced at $425/mt CFR and 18,000 mt of bonus grade at $430/mt CFR. This means prices for HMS I/II 80:20 scrap in bulk have dropped by around $20/mt to $420-425/mt CFR, while workable prices for bonus scrap have settled at $430-440/mt CFR, down by $20-30/mt week on week.
Meanwhile, offer prices for ex-UK shredded scrap in containers in Bangladesh have been voiced at $475-490/mt CFR, compared to $505-520/mt CFR last week. “Several deals were reported at $500-505/mt CFR at the beginning of the week, but this level is unworkable anymore, as some offers have already reached $460/mt CFR,” an international trader told SteelOrbis. Besides, offers for ex-UK/EU HMS grade scrap have been heard at $445-450/mt CFR, down by $25/mt week on week.
“There will be some restocking next week but the expected weakening of finished steel demand due to the monsoon season, power cuts and LC-related issues will keep affecting scrap buyers in Bangladesh,” a market insider stated.