The import scrap market in Bangladesh has remained fairly silent this week, with not much trade activity witnessed amid delays in opening letters of credit (LCs), while prices have continued to move sideways for scrap in containers and have declined in the bulk segment.
Specifically, offers for ex-EU shredded scrap in containers have been reported at around $400/mt CFR, the same as last week, though several traders have reported their offers at $420/mt CFR. Meanwhile, offers for ex-EU and ex-Australia HMS I/II 80:20 scrap have been voiced at $390/mt CFR level, the same as last week.
“Bangladesh is currently down to 60 percent production from the usual numbers and the country is looking for the release of the next tranche from the IMF, which is also putting things on hold. Moreover, it has come to knowledge that Bangladeshi banks are asking for higher margins to establish any new LCs,” a market insider said.
In the bulk segment, trade activity has still been in a lull, with indicative offers for ex-US HMS I/II 80:20 scrap standing at $380-385/mt CFR, against $395-400/mt CFR last week. Indicative prices for ex-Japan H2 scrap have settled at $375-377/mt CFR, while, according to sources, in Japan's recent Kanto scrap export tender approximately 15,000 mt of scrap were likely booked by a Bangladeshi mill at JPY 42,720/mt ($302/mt) FAS, reflecting a decrease of JPY 5,236/mt month on month. The FAS price translates to JPY 43,720/mt FOB or $309/mt FOB, $25/mt lower than last month.
“Imported prices for scrap in Bangladesh are likely to decline further in the bulk segment due to the current market conditions, affected by political and economic instability,” a market insider told SteelOrbis.