Bangladesh: Imported ferrous scrap prices rise on higher freight costs, uncertainty amid Gulf conflict

• Freight surge lifts offer levels; mills remain silent
  
  
• Domestic rebar remain stable on weak downstream demand
  
  

Imported ferrous scrap prices in Bangladesh moved higher in the week ended 5 March as containerised offers strengthened amid rising vessel freight and tightening export availability, particularly from Australia. Suppliers raised offer levels, citing freight uncertainty linked to the ongoing Gulf conflict, while buyers returned to the market selectively to replenish inventories.

BigMint's weekly assessments

• European-origin HMS (80:20) assessed at $360/t, up by $4/t w-o-w.
  
  
• European-origin containerised shredded, an increase of $4/t w-o-w to $380/t.
  
  
• Japanese-origin H2 bulk rise by $6/t w-o-w to $358/t.
  
  
• US-origin HMS (80:20) bulk increased by $5/t w-o-w at $380/t.
  
  

Market Commentary

Suppliers quoted Australian shredded scrap around $383-385/t CFR Chattogram, while HMS (80:20) from Australia was heard at $360-365/t. A Brazil-origin cargo of HMS 90:10 was booked at around $365/t CFR for 1,000 t, while a Philippines-origin cargo of 500 t of GI bundles traded at $335/t CFR.

Indicative market levels placed HMS (80:20) at $355-360/t CFR, HMS 1 at $365-370/t, shredded scrap around $372-373/t, and PNS near $378-380/t, though some suppliers continued to negotiate higher levels.

An Australia-based supplier noted that most cargoes from Australia and New Zealand are currently being directed to Bangladesh, reflecting stronger buying interest from the Chattogram market compared with other Asian destinations.

However, buying sentiment remains mixed. A Chattogram-based bulk scrap buyer said that although a recent US West Coast-origin HMS (80:20) cargo was booked at around $375/t CFR Chattogram, most mills are reluctant to accept such levels for now due to volatile market sentiment and uncertainty over near-term price direction.

Rerollable scrap also remained firm, with Hong Kong-origin PNS heard near $430/t CFR and Singapore-origin material offered at around $450/t.

Market participants said mills have resumed limited bookings to secure near-term raw material requirements, though most buyers remain cautious amid persistent uncertainty in global scrap shipments.

Domestic steel prices in Bangladesh remained relatively stable, with Chattogram rebar assessed around BDT 83,000/t ($678/t) and billet around BDT 75,000/t ($613/t).

Short-term outlook

Imported scrap prices in Bangladesh are expected to remain firm in the coming days, supported by higher oil and freight costs and tighter supply from the US, Australia, and New Zealand, even as mills remain cautious about active purchasing.