Import scrap prices in Bangladesh have shown a mixed trend over the past week, with no clear direction observed in the market. While some sellers, particularly in the containerized scrap segment, have tried to increase their offer price levels, discounts have been seen in concluded deals for both containerized and bulk scrap. Overall market sentiment has remained cautious, with buying interest still limited amid slow rebar sales, the approaching monsoon-related seasonal slowdown and uncertainty over finished steel demand.
More specifically, offers for ex-EU HMS I/II 80:20 scrap in containers have been heard at $390/mt CFR this week, compared to $380-385/mt CFR heard last week, while bids for ex-EU/UK shredded scrap in containers have reported at around $410-413/mt CFR, compared to $410-420/mt CFR last week. However, no fresh concluded deals for ex-EU/UK containerized scrap have been heard in the market so far this week. “Frankly speaking, the presence of active customers in the market is very limited, so it is hard to say when the market will rebound,” a Bangladeshi trader told SteelOrbis, adding that rebar sales have remained very slow due to limited construction activity and the seasonal slowdown expected during the May-August monsoon period.
As for ex-Australia material, 1,000 mt of shredded scrap have been sold at $408/mt CFR Chattogram, compared to offers at $415-418/mt CFR Chattogram reported two weeks ago, while 3,000 mt of HMS I/II 80:20 scrap have been sold at $395/mt CFR Chattogram, compared to offers for HMS grade scrap at around $390/mt CFR and HMS I scrap at around $400/mt CFR heard in the same period. However, market sources have stated that fresh offers for Australian material have still been heard at higher levels, suggesting that sellers have continued to test the market despite limited buying interest. In addition, 3,000 mt of Australian-origin PNS scrap have been sold at $426/mt CFR Chattogram, down from an ex-Australia PNS deal at $438/mt CFR Chattogram heard last week, indicating that actual deal levels have not fully followed sellers’ higher offer attempts.
In terms of other origins, 1,000 mt of ex-Singapore PNS scrap have been sold at $425/mt CFR. Meanwhile, ex-Hong Kong PNS scrap has been offered at $440-445/mt CFR this week, compared to bids at $410/mt CFR heard last week, though market sources have indicated that current bids remain far below the latest offer levels. One source also reported that 3,000 mt of Malaysian-origin PNS scrap was sold late last week at $426/mt CFR Chattogram.
In addition, offers for Philippines origin H2 bundle scrap have been voiced at around $380/mt CFR Chattogram, with some room for negotiation, according to market sources.
In the bulk segment, a 40,000 mt ex-US West Coast cargo, including around 34,000 mt of HMS I/II 80:20 scrap, is reported to have been booked late last week, at $412/mt CFR for HMS I/II 80:20 scrap and at $422-423/mt CFR for shredded and bonus scrap, slightly below the previous ex-US West Coast bulk cargo reported with HMS I/II 80:20 scrap at $414/mt CFR and shredded scrap at $424/mt CFR. Overall, bulk prices have remained broadly firm, while buying activity has stayed selective.
Meanwhile, the local Bangladeshi market has remained under pressure from weak finished steel demand. Market participants have stated that rebar sales are very slow, with construction activity still limited after the formation of the newly elected government and with no major infrastructure projects having started yet. According to local sources, buying interest in import scrap has also been limited by cheaper local scrap, higher freight costs and volatility in rebar prices, which have continued to weigh on import feasibility.