Trade activity in Bangladesh’s import scrap market has remained subdued, with only occasional deals reported for scrap in containers at relatively unchanged prices from last week given that steel production at major Bangladeshi mills has remained subdued, with some mills undergoing shutdowns that have further dampened market confidence.
More specifically, a deal for around 2,000 mt of ex-Australia shredded scrap in containers has been signed at $400/mt CFR, the same level as last week. Besides, another deal for 3,000 mt of ex-Australia HMS I/II 90:10 scrap has been reported at $380/mt CFR, which corresponds to offers heard last week. Furthermore, market insiders have reported another deal for 1,000 mt of PNS scrap from Hong Kong at $425/mt CFR, while a trade for 1,500 mt of AB bundle scrap from Hong Kong has been done at $375/mt CFR.
Meanwhile, trade in the bulk segment has remained in a lull, with indicative offers for ex-US HMS I/II 80:20 scrap estimated at $380/mt CFR, down by $5/mt week on week, while customers’ workable price indications have been heard at $375/mt CFR, though no fresh deals have been reported so far.
“The steel industry in Bangladesh is currently facing significant difficulties, with limited opportunities for growth as the government grapples with key challenges. Construction delays, particularly in rural regions, have led to an accumulation of surplus steel at mills, forcing them to sell at discounted prices in an attempt to reduce stockpiles,” a market insider told SteelOrbis, adding, “Unfortunately, these measures have failed to stimulate demand, leaving the market stagnant. While law enforcement in Dhaka remains tight in the wake of political unrest, Chattogram has experienced some relief in terms of operations.”