Trade activity in Bangladesh’s import scrap market has remained slow this week given the sluggish local finished steel demand and, although most import scrap prices have remained relatively stable over the past two weeks, most bids have been voiced at lower levels.
More specifically, according to sources, only occasional deals for containerized scrap have been heard in Bangladesh this week, with a deal for an ex-UAE mixed cargo of HMS grade and PNS scrap signed at $415/mt CFR. Meanwhile, offers for ex-EU/UK shredded scrap in containers have been estimated at $400-405/mt CFR, the same as two weeks ago. Besides, offers for Australia origin shredded scrap have been heard at $405/mt CFR, though most bids have been voiced at $395/mt CFR. Besides, offers for ex-EU HMS I/II 80:20 scrap have settled at $385-390/mt CFR.
Suppliers from Hong Kong and Malaysia have been offering PNS scrap at around $420/mt CFR, the same as last week, though, according to traders, lower offers at $415/mt CFR have also been reported in the market.
In the bulk segment, trade activity has been close to zero, while indicative offers for ex-US HMS I/II 80:20 scrap have settled at $385-390/mt CFR, with offers at $400/mt CFR for shredded scrap, mainly the same as last week. Offers for ex-Japan H2 scrap have been voiced at $370-380/mt CFR, the same as last week as well.
According to sources, bookings for import scrap are anticipated to continue for only limited volumes because of low demand, while rebar sales are expected to be influenced by spot discounts. However, worries about the depreciation of the Bangladeshi taka against the US dollar are affecting the market mood as market insiders believe it will also add pressure regarding the opening of new letters of credit by importers.