Prices for imported scrap in Bangladesh have lost about $25-30/mt over the past week as the downtrend has gathered momentum in Turkey’s import scrap market. Demand has come to a standstill in Bangladesh as most buyers have been waiting for market prices to drop to lower levels.
Offers for HMS I/II 80:20 in containers have slumped to $415/mt CFR, down by $25-30/mt compared to the previous week. But no fresh deals have been reported as buyers are not sure that prices have reached the bottom. “All sellers keep chasing to get Bangladeshi buyers' bids. On the other hand, all my listed clients have stopped fresh bookings, and are just observing the market,” a local trader said.
Suppliers have been asking for $430/mt CFR in Bangladesh for shredded scrap in containers, but “buyers are refraining from bidding,” another source said. Some mills have switched to local scrap purchases for now, if there is an urgent need to buy.
There have been almost no fresh offers for bulk scrap from the US this week. After a deal at $485/mt CFR to Bangladesh for a bulk cargo last week, market sources have been estimating the current level for bulk ex-US HMS I/II 80:20 at $450/mt CFR or around. But this is a nominal level as buyers and sellers are mostly absent for now. The next week will bring more clarity and activity to the market, market sources believe.