Imported scrap prices have declined in Bangladesh in late April-early May, while buying activity has been weak due to the extended lockdown, though there have been some relaxations, and due to Ramadan.
The tradable value and some offers for HMS I/II 80:20 have been heard at $245-250/mt CFR Chittagong recently. Small-volume deals have been reported at the low end of the range. A bulk cargo of Australian HMS I/II 80:20 scrap was purchased at $255/mt CFR Bangladesh in mid-April. “Prices were stable, but then went down mainly because of the slowdown during Ramadan,” a local source said.
Offers for shredded scrap from Brazil have been heard at $270/mt CFR, with offers for P&S at $275/mt CFR, sources have said, adding that they are hardly workable at the moment.
The Ministry of Public Administration of Bangladesh has extended the nationwide lockdown until May 16, as announced during the weekend. Though there will be relaxation of restrictions starting from this week, demand for steel in the country will need time to come back to normal. Steel factories in Bangladesh have already started to gradually resume operations, and so overall scrap demand will go up. Nevertheless, “it [demand for scrap] will stop in mid-May or so for the rest of the month [due to religious holidays],” a trader said.
