Scrap price increases boost buying interest in Bangladesh

Thursday, 13 January 2022 16:58:31 (GMT+3)   |   Istanbul
       

Given the bullish sentiments mounting among global scrap suppliers following bookings done to Turkey at higher prices, Bangladeshi scrap importers have resumed active negotiations. Moreover, most customers have opted to renew their positions now, having concerns that prices will move up further. Overall, scrap offer prices are around $10-15/mt higher than levels in deals two weeks ago.

A deal for 32,000 mt in an HMS bulk cargo at $515/mt CFR Chittagong has been actively discussed in the market this week, but confirmation of the information has remained in doubt due to the low price. “I suppose the reason for this low price is the origin of the material as in the US scrap prices have gone down drastically,” a Hong Kong-based trader commented. “It may not be a fresh deal. Two weeks ago, the situation was really bad for bulk. Now the numbers are on average $10-15/mt higher,” a major trader based in Bangladesh stated with regard to the abovementioned deal. About three weeks ago, a mixed ex-US cargo, consisting of bonus, shredded and HMS grade scrap, had been booked at $530/mt CFR Chittagong, as SteelOrbis reported previously. At that time, an ex-Ireland HMS I cargo totaling 32,000 mt was booked at the same price. This week, a cargo for ex-Brazil HMS I/II 80:20 scrap has changed hands at $518/mt CFR Chittagong, while two weeks ago offers were mostly at $505/mt CFR, as SteelOrbis has learned. Offers for ex-Japan H2 scrap have been heard at $530/mt CFR, with no trading heard so far.

Meanwhile, offers for containerized shredded scrap to Bangladesh have been heard at $565-570/mt CFR this week. A small ex-Europe lot has been booked at $562/mt CFR Chittagong. Ex-Chile and ex-Colombia HMS I offers have reached $535/mt CFR Chittagong, though the customers are still trying to get $525-530/mt CFR. A mixed cargo of HMS I&PNS from UAE is said to be available at $550-555/mt CFR. 

In the meantime, 10-16 mm rebar in Chittagong is still available at BDT 75,000-78,000/mt ($873-908/mt) ex-works, while in Dhaka offers are voiced mainly at BDT 72,000-74,000/mt ($838-862/mt) ex-works

$1 = BDT 85.8737


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