Despite the recent increase in scrap prices in the international market, the situation in the market in Bangladesh has not improved. Suppliers have been trying to increase offers, but importers have still been bidding at low levels and no new transactions have been reported in the second half of May.
The workable price level for HMS I/II 80:20 has been at $255/mt CFR Chittagong recently and, though it is a bit higher than $245-250/mt CFR in early May, it is a very low level taking into account prices for other sales destinations, sources have said. Offers from Australia and South America have been heard in the market at above $260/mt CFR, with sellers ready to negotiate, but buyers have been not making inquiries. Steel mills have been on holidays and have started to come back to the market only on Wednesday this week. Sources have said that for now those who need scrap have been using material from stocks.
Offers for shredded scrap to Bangladesh have been at $280-290/mt CFR, with no demand at all.
Unlike in Bangladesh, demand for scrap has started to revive in Pakistan. Some small volumes of ex-EU shredded scrap in containers have been purchased at close to $280/mt CFR, sources have said, adding that last week small trades were concluded at $270/mt CFR Pakistan.
