This week, prices for import scrap in Bangladesh have been moving sideways, with more deals reported for containerized scrap mainly from Australia, New Zealand and the UAE, while materials from Asia, including those from Hong Kong, Malaysia and Singapore have been less attractive due to higher freight costs. At the same time, although trade activity has improved to some extent this week, most market insiders expect steelmaking operations to be affected during the monsoons season, with low demand expected for finished steel due to slow construction activity.
More specifically, in the containerized segment, following several deals for ex-Australia shredded scrap at $430/mt CFR last week, this week several deals for around 5,000 mt have been signed at $425-426/mt CFR, though most offers have remained at levels of $430/mt CFR and higher. Besides, around 2,000 mt of ex-New Zealand shredded scrap have been sold to Bangladesh at $425/mt CFR. Meanwhile, offers for ex-EU shredded scrap in containers have been estimated at $425-430/mt CFR, the same as last week.
At the same time, more deals for around 3,000 mt in total of ex-Australia HMS I/II 90:10 scrap have been reported at $408-410/mt CFR during the past week, though, according to sources, new ex-Australia HMS I/II 90:10 offers have been voiced at $415-mt CFR. Besides, another deal for around 1,000 mt of ex-New Zealand HMS I/II 90:10 containerized scrap has been heard at $410/mt CFR, the same price as last week.
Furthermore, while offers for ex-Hong Kong PNS scrap have been voiced at as high as $452/mt CFR, due to higher freight rates, Bangladeshi coatomers have managed to book around 2,000 mt of ex-US PNS scrap at $445/mt CFR. Besides, another deal for an ex-UAE mixed batch of HMS grade and PNS scrap has been reported at $420-425/mt CFR, according to sources.
Trade activity in the bulk segment has remined weak, with indicative offers for ex-US HMS grade scrap heard at $405/mt CFR, the same as last week. According to sources, talk about a deal signed in the last week of June for 32,000 mt of an ex-US mixed cargo have been circulating in the market at $400/mt CFR for HMS grade scrap and $405/mt CFR for shredded scrap. However, this information has not been confirmed by the time of publication.
In the meantime, although most market insiders are rather pessimistic over the future demand for steel due to the seasonal slowdown during the monsoon season, news about the launch of a new plant in Chattogram brings some positivity to the market. Specifically, as SteelOrbis reported earlier, leading Bangladeshi steelmaker BSRM plans to start trial production of long steel at its new plant in Chattogram (Chittagong) by early July. With an annual production capacity of 800,000 mt, this facility aims to raise the company's share in the local steel market to 34 percent from 23 percent currently and to cater to the rising demand for longs and import scrap.