Bangladesh: Imported ferrous scrap prices rise w-o-w amid post-election optimism

• LC constraints weigh on small mills despite firm sentiment
  
  
• Ship recycling strengthens with higher steel plate prices
  
  

Imported ferrous scrap prices in Bangladesh recorded a positive trend, as assessed on 25 February, with containerised offers edging up slightly and bulk cargoes gaining on improved post-election sentiment and renewed trust in the new government. However, underlying business conditions remain weak, with liquidity constraints continuing to pressure the smaller rerolling mills.

BigMint's weekly assessments

• European-origin HMS (80:20) assessed at $356/t, up by $4/t w-o-w.
  
  
• European-origin containerised shredded, an increase of $3/t w-o-w to $376/t.
  
  
• Japanese-origin H2 bulk inched up by $1/t w-o-w to $352/t.
  
  
• US-origin HMS (80:20) bulk stable w-o-w at $375/t.
  
  

Cautious buying amid LC pressure

Market sentiment improved across key trading hubs following the election outcome. However, tight banking liquidity has restricted LC openings, particularly for small and mid-sized mills. The larger integrated mills continued to book cargoes, leveraging stronger balance sheets to operate at compressed scrap-to-rebar spreads.

Indicative tradable ranges from Australia were heard at $355-360/t for HMS (80:20), $365-370/t for HMS 1, $375-380/t for shredded, and $380-385/t for PNS CFR Chattogram.

Reported trades included 325 t of LMS bundles (West African origin) at $305/t CFR Chattogram and 3,000 t of PNS from Singapore at $385/t, with an additional 1,000 t booked at similar levels from Malaysia/Singapore/Hong Kong.

Finished steel and recycling offer support

A Dhaka-based mill source reported rebar prices at BDT 80,000/t in Dhaka ($655/t) and BDT 85,000/t in Chattogram ($696/t), while billet prices were heard around BDT 70,000/t ($573/t). Local ship scrap was quoted near BDT 52,000/t ($426/t), offering relative cost support to induction furnace operators.

Chattogram's ship recycling market strengthened this week, supported by a $16/t rise in local steel plate prices and improved political stability. Aggressive bids secured higher-LDT vessels, reinforcing Bangladesh's competitiveness against regional peers.

Outlook

Scrap prices are likely to remain firm in the coming days supported by improved sentiment and stronger ship recycling activity. However, tight liquidity and LC constraints may cap upside, keeping buying largely need-based and limiting sharp price gains.