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, due to the surge in bookings of shredded scrap in India and Pakistan, most sellers have been bullish as regards Bangladesh as well, but Bangladeshi buyers have kept resisting price hikes, keeping their bids stable.
More specifically, most offers for shredded scrap in containers from the UK have been reported at $450/mt CFR, the same as last week, with a few sellers trying to go higher, offering at $455/mt CFR. Offers for ex-UK HMS I/II 80:20 scrap have remained unchanged at $420-425/mt CFR. Besides, according to sources, offers for HMS I/II 80:20 scrap from Australia have been voiced at $425/mt CFR, though no buyer has been ready to accept this offer. Thus, according to sources, the material has been booked at $418/mt CFR.
“LCs are being delayed in Bangladesh these days. I’m waiting for one of my LCs for the last 40 days,” a local trader said.
Meanwhile, trade in the bulk segment has been close to zero this week in Bangladesh, since, in the absence of trade in Turkey, most Bangladeshi buyers prefer to wait and see, refraining from deals. Offers for ex-US HMS grade scrap have been voiced at around $425/mt CFR, the same as last week. However, according to sources, Bangladeshi customers have been bidding at $415/mt CFR.
At the same time, market insiders reported a deal for 20,000 mt ex-Japan shindachi scrap - a Japanese grade of busheling scrap - signed in Bangladesh at $455/mt CFR.