Bangladesh scrap importers have been active in negotiations, having concerns that prices may move up further. Overall, by the end of this week prices for bulk scrap are around $100/mt higher than levels in offers at the beginning of this week.
A mixed ex-US bulk cargo including around 32,000 mt of HMS I/II 80:20, shredded 211 and bonus scrap has been booked by Bangladeshi mills at $700/mt CFR this week. At the beginning of this week, offers for bulk HMS I/II 80:20 scrap were heard at $600/mt CFR. “We expect more deals to be signed in the short run amid high demand for bulk scrap of other origins, which is pushing the prices up, and also there is a shortage of containers,” a market insider told SteelOrbis.
Meanwhile, in the containerized scrap segment, market sources reported higher prices in new deals along with a shortage of containers in Bangladesh. “Containers are not available from any other destinations except from the UK, Brazil and Chile in Bangladesh,” a market source stated. A cargo for ex-Chile HMS grade scrap has been booked at $635/mt CFR Chittagong. Another cargo for ex-UK HMS I/II 90:10 scrap has been booked at $618/mt CFR, up by around $70/mt over the past two weeks. Besides, a deal for ex-Australia/Fiji HMS I/II 90:10 has been reported at $625/mt CFR. Offers for ex-Brazil PNS scrap have been heard at $635/mt CFR, and ex-UK shredded 211 scrap offers at around $660/mt CFR. However, some market insiders believe ex-UK offers may increase to $700/mt CFR in the short run.
In the meantime, 10-16 mm rebar in Bangladesh is available at around PKR 82,500-87,000/mt ($955-1,006/mt) ex-warehouse, up by PKR 10,000/mt ($115/mt) over the past two weeks.
“The ongoing Russia-Ukraine war has disrupted the market and freight rates keep increasing. Also, high offers from major suppliers have impacted the global market and Bangladesh is not an exception,” a Bangladesh-based trader told SteelOrbis.