Trade has been rather slow in the import scrap market in Bangladesh this week, with most offers moving sideways. At the same time, according to sources, trade activity has been very strongly affected by increasing freight costs coupled with weak demand during the monsoon season.
Specifically, indicative offers for ex-Australia shredded scrap in containers have been estimated at $430-435/mt CFR, while offers for ex-UK/EU shredded scrap have been voiced at $430/mt CFR and slightly below. This means prices have moved sideways over the past week.
At the same time, offers for ex- UK/EU HMS I/II 80:20 scrap have been heard at $405-408/mt CFR, with the tradable levels estimated at $400-405/mt CFR. Besides, offers for ex-Brazil HMS I/II 80:20 have been voiced at around $410/mt CFR.
According to sources, a deal for around 1,000 mt of ex-Australian PNS has been signed at $442/mt CFR this week, while another deal for an ex-UAE HMS/PNS mixed cargo has been signed at $430/mt CFR.
“Containers freights are killing suppliers. They are struggling to find space and containers and are also losing money on the past deals they made,” a Bangladeshi trader told SteelOrbis.
In the bulk segment, trade activity has been even worse than in the containerized segment during the past weeks. “US suppliers are quiet now, waiting for the settling of their own domestic market,” a local trader said. Offers for ex-Japan H2 scrap have been voiced at $400/mt CFR, down by $5/mt week on week.
“Local shipbreaking scrap prices are also on the lower side, but buyers are purchasing only to cover urgent needs,” another source said.