The continuing global scrap price uptrend and persisting demand from customers in Bangladesh have pushed prices for imported scrap in the country up further, resulting in deals for containerized shredded material at new highs at above $500/mt CFR.
In the containerized scrap segment, prices for shredded scrap have increased from $460-470/mt CFR two weeks ago to $505-510/mt CFR Bangladesh. Such a sharp hike has happened in reaction to the strong demand in the region with increased competition for cargoes between customers from Bangladesh and Pakistan, while the offered volumes have remained tight and suppliers’ positions have been strong.
“Bids are still at $500-505/mt CFR, but Pakistan has already paid $505/mt CFR for shredded. Hence, no sellers are willing to sell at this level,” a Bangladesh-based source said. Some sources reported one contract for Bangladesh at $505/mt CFR in the second half of last week.
A deal for HMS I/II 80:20 in containers from South America has been reported at $475/mt CFR, while the tradable level was $450-455/mt CFR two weeks ago. A few bookings for P&S have been done in Bangladesh at $490-495/mt CFR recently.
Offers for HMS I/II 80:20 scrap by bulk have been heard at $510/mt CFR and above. The tradable level was assessed at $480-500/mt CFR two weeks ago. The long-lasting break in bulk scrap purchases has resulted in lower inventories held by end-users. The tradable value for shredded scrap is as high as $520/mt CFR at the moment.