Bangladesh: Imported containerised scrap offers remain stable amid limited trade

In Bangladesh, the imported ferrous scrap market remained largely stable w-o-w, with containerised scrap offers showing minimal fluctuations, as the international market held steady. However, buying from Malaysia has stalled due to higher freight rates, port congestion, and extended lead times. Similarly, bookings from the UK have slowed down due to concerns about lower-quality scrap.

BigMint's assessment for Europe-origin containerised shredded scrap remain stable w-o-w at $425/t, while HMS (80:20) prices stood at $405/t.

Over the past seven days, approximately 5,000 t of containerised scrap deals were concluded, with materials sourced from various origins, including Chile, the UAE, and Australia. Offers for HMS (90:10) containerised scrap from Australia were reported at $412/t, CFR Chattogram.

A steel mill source informed BigMint that buyers are eyeing cheaper sources, particularly South America, amid logistical challenges in easy shipment regions like Malaysia and Hong Kong, where vessel availability is limited.

According to market sources, US-origin HMS bulk scrap was offered at $405-406/t, while buyers indicated workable levels at $400-402/t CFR Chattogram. Australian-origin bulk HMS was offered at $406-408/t CFR.

BigMint's latest weekly assessment shows US-origin HMS (80:20) bulk scrap prices rose by $5/t to $405/t CFR Chattogram.

Japanese H2 scrap offers were in the $400-402/t range, while buyer inquiries hovered around $390-395/t CFR.

BigMint's weekly assessment for Japan-origin H2 bulk scrap prices increased by $6/t w-o-w, now at $401/t CFR Chattogram.

A representative from a major steel mill noted that Bangladesh made a few inquiries for Brazilian scrap at $420-422/t, but suppliers declined due to better margins from other buyers at $425/t.

Recent deals:

• Around 500 t of UAE-origin PNS were booked at $425/t on a CFR Chattogram basis.
  
  
• Approximately 1200 t of Chile-origin HMS were booked at a range of $400-405/t on a CFR Chattogram basis.
  
  
• Around 3,000 t of HMS (80:20) from Australia was booked at $400/t on a CFR Chattogram basis.
  
  

Domestic market: In the local market, rebar prices stood at BDT 85,000-88,500/t (equivalent to $774-806/t) exw-Dhaka, and BDT 92,000-93,000/t (equivalent to $838-847/t) ex-Chattogram. Billets are at BDT 77,500-78,000/t (equivalent to $706-710) exw. Ship-breaking scrap prices locally are between BDT 58,000-60,000/t (equivalent to $528-546/t).

Outlook: In the short term, imported scrap prices are likely to stay elevated, driven by the firm stance adopted by European and US suppliers. Bulk scrap procurement could remain subdued as buyers wait for more clarity on price trends. An anticipated short-term shortage in the domestic scrap market is likely to push buyers to continue regular bookings.