Import scrap offers to Bangladesh have been tweaked in accordance with developments in the global scrap market in the last two weeks. Although trading activity has remained constrained due to the availability of containers, lower offers from foreign suppliers have encouraged Bangladeshi buyers to book bulk material.
Accordingly, an ex-Australia bulk cargo including 25,000 mt of HMS I/II 80:20 scrap has been booked at $540/mt CFR Chittagong this week. Besides, a cargo of 32,000 mt of ex-US shredded 211 scrap has changed hands at $565/mt CFR this week. Two weeks ago, before the Eid holiday in the country, there were offers for ex-US scrap at $600-610/mt CFR. “Bangladeshi steelmakers have been attempting to take advantage of the prevailing bearish sentiments in the global market and we expect new deals at lower levels,” a market insider told SteelOrbis.
Meanwhile, in the containerized scrap segment, no new bookings have been heard so far, though most offers have decreased over the past two weeks. “Usually scrap prices in bulk are $20/mt higher than in containers, but now it’s quite the opposite. Scrap offers in containers are higher now due to the freight surge,” a market participant stated. In particular, an offer for ex-UK HMS I/II 80:20 scrap has been voiced at $560/mt CFR, down by $30/mt week on week. Besides, offers for ex-Brazil HMS I scrap have been heard at $580/mt CFR, compared to $600/mt CFR two weeks ago, while ex-UK shredded scrap offers have been heard at $600-615/mt CFR, down $10-15/mt over the past two weeks.