Trading activity in the import containerized scrap market in Bangladesh has remained slow this week, even though most foreign suppliers have decreased their offers prices. At the same time, although this week market insiders reported a new booking for ex-US scrap in bulk, the situation in bulk segment remains challenging due to difficulties in opening new letters of credit (LCs) with many vessels already being redirected from Bangladesh to India. Thus, in the current conditions, market players believe in a potential downturn of tradable prices by up to $30/mt next month.
Specifically, according to sources, following a deal signed a few weeks ago for 32,000 mt in total of ex-US scrap in bulk at $406/mt CFR for HMS I/II 80:20, at $410/mt CFR for shredded and at $415/mt CFR for bonus, this week new deal for ex-US materials has changed hands at $385-390/mt CFR for HMS I/II 80:20 and at $390-395/mt CFR for shredded scrap. However, according to sources, trading activity in bulk segment is likely to slow down in September due to LC issue and weak finished steel demand in the country.
Meanwhile, offers for ex-EU shredded scrap in containers have been estimated at $400/mt CFR level, down by $25/mt over the past two weeks. Besides, offers for ex-EU HMS I/II 80:20 and PNS scrap have settled at $390/mt CFR and $430/mt CFR, respectively, down by $10-15/mt over the past two weeks. Furthermore, according to sources, an offer for 2,000 mt of ex-Brazil HMS I/II 80:20 has been voiced at $400/mt CFR, down by $10/mt over the period under review.
Besides, several offers for PNS scrap have been reported from Singapore and Malaysia at $435/mt CFR, while offers for ex-Peru and ex-Brazil PNS scrap have settled at $425/mt CFR and $420/mt CFR, respectively.