Trade activity in the import scrap market in Bangladesh has continued to lack strength amid continuing issues with opening letters of credit (LCs). At the same time, according to sources, given weaker trade and lower prices of shredded scrap in India and Pakistan, most sellers have been bearish as regards Bangladesh as well, while Bangladeshi buyers have kept lowering their bids.
More specifically, most offers for shredded scrap in containers from the UK, Australia and New Zealand have been reported at $430-435/mt CFR, down by $5/mt week on week. Offers for ex-Australia and New Zealand HMS I/II 80:20 scrap have been reported at $425/mt CFR, the same as last week. Meanwhile, following several deals for PNS scrap at $450-455/mt CFR last week, new offers for have been voiced at $440/mt CFR and a maximum of $445/mt CFR. Furthermore, offers for HMS I scrap from the Middle East have been heard at $430/mt CFR.
“The LC issue is worsening every week, as buyers are struggling to open any, while the market is very quiet, expecting prices to drop further,” a Bangladeshi trader told SteelOrbis.
Meanwhile, trade in the bulk segment has been close to zero this week in Bangladesh, with indicative offers for ex-US HMS I/II 80:20 scrap at $420/mt CFR, for shredded at $425/mt CFR and for bonus at $430/mt CFR, down by $5-10/mt week on week.