Import scrap prices have increased in Bangladesh over the past week, which has been confirmed in a number of deals. Most customers have been restocking before the holiday.
According to sources, new deals for mixed cargoes of ex-US HMS I/II 80:20 and shredded scrap have been done at $470/mt CFR on average, up from $453-460/mt CFR in the previous deals done in the middle of March. There has been no confirmation of the total volumes sold, but sources have said that from two to four bulk cargoes were booked last week to Bangladesh. A firm offer for 28,000 mt from the major supplier from the US West Coast has been heard at $465/mt CFR for HMS I/II 80:20 and $470/mt CFR for shredded on April 5. “This $10/mt increase came after higher prices in Turkey and a jump in offers,” a source said. But “demand is not so good. From today, Bangladesh is on lockdown as the Covid situation is worse. Mills booked for restocking,” another source said. From April 5, Bangladesh has started a week-long lockdown with all shops and transportation stopping operations.
Starting from the second half of April, demand for scrap in Bangladesh will decline even more due to the month of Ramadan, according to sources.
In the container scrap segment, deals for shredded scrap were signed at $455/mt CFR, while some sources said that one contract was at $460/mt CFR. This means that prices have added $5-10/mt week on week. New offers for shredded scrap are starting from $470/mt CFR and up to $490/mt CFR.
After deals for import HMS I/II 80:20 in containers at $435-440/mt CFR last week, the offer level has increased to $445/mt CFR.