Scrap price rise drives Bangladeshi customers to seek cargoes

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.