Bangladesh: Imported scrap market slows down as billet oversupply weighs on sentiment

• Scrap demand weak amid fuel cost pressure
  
  
• Limited Australian supply supports import prices
  
  

Bangladesh's imported scrap market remained slow, with unstable price movements and weak buying interest amid ongoing fuel cost pressures and subdued steel demand. At the same time, rising billet production without corresponding rolling capacity increased pressure on the domestic steel market, keeping sentiment cautious.

BigMint's weekly assessments CFR Chattogram

• European-origin containerised HMS (80:20): $390/t, down by $1/t w-o-w
  
  
• European-origin containerised shredded: $418/t, stable w-o-w
  
  
• Japanese-origin bulk H2: $408/t, up $2/t w-o-w
  
  
• US-origin bulk HMS (80:20): $412/t, unchanged w-o-w
  
  

Market comments

A Chattogram-based trader said, "Imported scrap offers are largely stable, with HMS around $390/t CFR, shredded at $410-420/t, and PNS near $430/t. Brazil-origin HMS 80:20 is being offered at $400-405/t, while Hong Kong-origin oversize PNS is heard at $440/t CFR Chattogram."

An Australian scrap supplier said, "We have not been active in Bangladesh over the past two weeks, as cargoes are being diverted to stronger-paying markets such as Taiwan and Vietnam."

Domestic market

Domestic steel sentiment remained under pressure, with billet prices weakening amid rising production and slow seasonal demand during the rainy period. Market participants noted that several billet producers have started operations without captive rolling mills, increasing supply pressure in the market. Local billet prices were around BDT 67,000/t ($545/t), while standard rod stood at BDT 78,000/t ($635/t), semi-brand rod at BDT 82,000-85,000/t ($669-693/t), and full-brand rod at BDT 87,000-93,000/t ($708-757/t) for Dhaka and Chattogram. Meanwhile, local scrap prices were stable at BDT 55,000-57,000/t ($449-464/t).

The ship recycling market remained stable, supported by firm plate prices and a steady currency, with Chattogram maintaining a premium over Alang and Aliaga. However, strict compliance checks and limited vessel availability continued to restrict activity.

Outlook

The Bangladesh market is expected to remain cautious in the coming days as weak steel demand and cost pressures continue to limit aggressive buying. However, tight regional scrap availability and firm ship recycling demand may continue to support overall price levels.