After a pause, new scrap bookings have been heard in Bangladesh with an increase of at least $10-15/mt compared to the previous transaction in late March. The scrap has been purchased for future needs as most steel mills have been forced to temporarily halt production or reduce it to minimum due to the lockdown which has been extended from the initial April 14 until April 25.
A bulk cargo of Australian HMS I/II 80:20 scrap has been purchased at $255/mt CFR Bangladesh this week, while the previous price level for this grade was $240-245/mt CFR. Moreover, on Monday P&S scrap from Australia was booked at $260/mt CFR, with an additional volume of the same grade booked at $270/mt CFR Bangladesh today.
HMS I from South America in containers has been booked at $250/mt CFR in Bangladesh.
Tight supply volumes from major scrap supplying regions have led to the price increase. Overall demand in Bangladesh has been limited due to the spread of Covid-19. Mills may consider resuming crude steel production only from late April as the national lockdown has been extended by 11 days and they may purchase scrap only for their needs in the May-June period.
