A sharp drop in scrap prices in Bangladesh has been confirmed in the recent deal with US-based suppliers from the west coast. A cargo of 32,000 mt in total has been sold to a Bangladeshi steel producer at $250/mt CFR for shredded scrap. This means that deal prices for shredded scrap have fallen by $25/mt compared to the previous transaction at $275/mt CFR reported by SteelOrbis on March 23.
At the same time, this contract is in line with expectations in the market as early this week the price assessment for ex-US HMS I/II 80:20 by bulk had already slipped to $240/mt CFR Bangladesh, as reported on Monday, March 30.
Market sources have said that customers’ price ideas for shredded scrap are not above $245/mt CFR at the moment, but overall demand has been limited. Bangladeshi prime minister Sheikh Hasina announced today April 1, that the lockdown in the country will be extended until April 11. It was declared from March 26 to April 4 initially.