US-based scrap suppliers have increased prices for customers in Bangladesh, following the uptrend seen in the local market and overall bullish moods in Asia. However, buying has been limited so far as steel prices in Bangladesh have been lagging behind.
Offers for ex-US HMS I/II 80:20 by bulk have reached $330/mt CFR or slightly higher. New deals can be done soon after a pause, sources believe. The tradable value was at $310-315/mt CFR in late August. Though buyers are resisting acceptance of higher prices, they have limited options for now, sources said.
A bulk booking for around 10,000 mt of Japanese H2 scrap has been reported at $305-310/mt CFR in the past week, with most offers already exceeding $310/mt CFR.
In the containerized scrap segment, offers for shredded scrap from Europe and the UK have surged to $335/mt CFR. HMS I has been available at $325/mt CFR, but bids are up to $15/mt lower. “Due to local finished product prices, mills are scared to purchase scrap cargos at these high prices,” a source said.