Bangladesh: Chattogram buyer secures Kanto H2 cargo for Mar'26; rising freight keeps import prices firm

• Bangladesh scrap import prices surge amid freight disruptions
  
  
• Freight volatility tightens scrap supply to the Bangladesh market
  
  

Japan's March Kanto scrap export tender recorded its eighth consecutive increase, with bids rising JPY 2,038/t ($13/t) m-o-m to levels last seen in March 2024.

Market insiders reported that a 20,000-t H2 cargo was awarded to a Chattogram-based mill through a Japanese trading house at JPY 50,121/t ($317/t) FAS. This translates to roughly $322-325/t FOB Japan or above $390-395/t CFR Chattogram. Notably, the buyer returned to the Kanto tender after its previous shipment in September 2025.

In dollar terms, the tender price increased by around $8/t m-o-m, partly supported by the weaker yen, which depreciated from JPY 156.1/$ on 10 February to JPY 158.23/$ on 11 March. Market sources indicated that the tender attracted 15 bids, with the total bid volume reaching 150,900 t against the 20,000 t cargo offered. Shipment is scheduled by 30 April.

Following the tender outcome, domestic scrap prices in Japan's Kanto region rose by about JPY 2,000/t ($13/t). The increase reflects gradually strengthening export demand, supported by higher freight costs and steady buying interest from key markets such as Bangladesh.

Tokyo Steel raises scrap purchase prices across key plants

Effective 12 Mar26, Tokyo Steel increased its scrap purchase prices, marking its third revision this month. Prices were raised by JPY 2,000/t ($13/t) at Tahara, Nagoya, Okayama, Kyushu, Utsunomiya, and Tokyo Bay plants, while the Kansai plant saw a higher increase of JPY 2,500/t ($16/t).

Bangladesh

Bangladesh's imported scrap prices improved w-o-w, as rising freight and oil costs pushed suppliers to adjust offers closer to buyers' workable thresholds. Containerised scrap offers increased by about $10-15/t for grades such as shredded and HMS, while bulk cargo prices firmed by $15-30/t w-o-w.

As a result, the landed cost of scrap at Chattogram has risen from around $370-375/t to nearly $400/t CFR in recent weeks. Exporters are also holding back offers, expecting further gains amid freight volatility and tightening supply.

BigMint's weekly assessments:

• European-origin HMS (80:20): $370/t, up $10/t w-o-w
  
  
• European-origin shredded (containerised): $391/t, up $11/t w-o-w
  
  
• Japanese-origin H2 (bulk): $388/t, up $30/t w-o-w
  
  
• US-origin HMS (80:20) bulk: $389/t, up $9/t w-o-w
  
  

Market commentary

As per a Chattogram-based trader source, indicative import prices into Bangladesh were heard as higher across major grades amid rising freight costs and tightening export availability. HMS (80:20) from the UK/EU was heard around $370-375/t CFR Chattogram, while HMS 1 from European and Brazilian origins was indicated at $380-385/t CFR. Shredded scrap was reported at $390-395/t CFR, PNS from Singapore at $400-408/t, and US-origin busheling near $410/t CFR.

Multiple containerised trades were reported, including 1,500 t of Brazil-origin HMS 90:10 at $365-385/t CFR Chattogram and 500 t of Philippines-origin GI bundles at $335/t CFR. Australian suppliers were heard quoting shredded at $383-385/t and HMS (80:20) at $360-365/t CFR.

A bulk deal for Australia/New Zealand scrap for April shipment was heard around $373/t, following earlier US West Coast deals at $374-375/t in early February.

In the domestic market, higher scrap costs have pushed up Bangladesh's steel rebar prices, with rebar rising from around BDT 81,000-85,000/t ($662-694/t) to about BDT 90,000-94,000/t ($735-768/t) within nearly 7-8 days.

Prices from leading branded mills in Chattogram and Dhaka are now heard around BDT 90,000-94,500/t ($735-772/t), while mid-tier and non-branded producers are offering slightly lower levels at BDT 88,000-89,500/t ($719-731/t). Meanwhile, shipbreaking scrap prices have increased to about BDT 56,000-57,000/t ($458-466/t).

Bangladesh relies on imports for over 90% of its scrap, but buying activity has slowed due to weak demand and geopolitical uncertainty. Scrap imports fell to around 0.3 mnt in February, the lowest level in a year, as mills remain cautious with purchases and operate with limited raw material and finished steel inventories.

Outlook

Imported scrap prices in Bangladesh are expected to remain firm, supported by higher oil and freight costs and tighter supply from the US, Australia, and New Zealand, even as mills stay cautious with fresh purchases. From Japan, export scrap prices may also trend higher, as freight rates to Bangladesh have increased from around $45-48/t to over $70/t, according to market sources.

The next Kanto tender, expected in the early second week of April, is likely to provide a clearer market direction, especially if the Middle East conflict continues to push up oil and bunker fuel prices.