Following more active negotiations for bulk scrap since last week in Bangladesh, one deal for 30,000-32,000 mt of ex-US scrap has been signed with HMS I/II 80:20 scrap priced at $385/mt CFR for September shipment, similar to the levels reported last week, but down by $15/mt from the offer level two weeks back. The tradable level for shredded in bulk in Bangladesh is at $390/mt CFR. Market sources mentioned that the deal was done only on an as-per-need-basis and after a sizable discount.
A number of mills in Bangladesh have faced loses lately, given the sharp exchange rate fluctuations which have impacted the costs of raw materials significantly. “Bangladesh is at a standstill. Every mill needs to open LCs to conclude pending deals,” a source said.
No new contracts have been reported for container scrap. Some offers for HMS I/II 80:20 scrap in containers have been reported at $400/mt CFR, down from the previous deals at $406/mt CFR. However, market sources said that the real deal price level for this grade would be close to $390/mt CFR. Offers for ex-Europe/UK shredded scrap have been reported at $420/mt CFR, versus $420-425/mt CFR last week, and too high for customers.