In recent conversations with market participants SteelMint learned that, imported scrap market has observed limited quantity deals at almost stable prices in Bangladesh. Following corrections in global markets, Bangladesh scrap importers booked few deals for imported scrap recently, moreover, local market has observed few signs of improvement in local finish steel demand reflecting in increasing enquiries for imported scrap.

However, few steelmakers remain hesitant booking over upcoming holidays in Bangladesh towards end of this month. 

In recent trade deals, Shredded 211 scrap from UK sold in containers in the range of USD 367-372/MT, CFR Chittagong. Steelmakers booked 1000MT containerized Shredded scrap at USD 371/MT levels and limited quantity at USD 370/MT from UK supplier. Few buyers’ bidding for Shredded scrap from UK and Europe origin stand at USD 360-365/MT levels however sellers were hesitant to offer at these levels.

P&S scrap offers assessed mostly in the range of USD 370-375/MT, CFR Chittagong and few minor quantity deals have confirmed at these levels.

In line with this, HMS 1 from South Africa sold at USD 350-355/MT, CFR levels and HMS 1&2 (80:20) offers remain in the range of USD 345-350/MT depending on various origins like UK and Europe which has remained almost stable as against report last week.

“Bangladesh importers are buying scrap in limited quantity with slight increase in finish steel prices, however few buyers are waiting for impact of recent price drop in Turkey market. Local market remains weak over ongoing rains and student protests moreover it may observe further slowdown on account of upcoming local holidays in the country” shared a market participant.

Domestic scrap prices in Bangladesh stable - Local scrap prices in Bangladesh remain stable this week and stand at around BDT 35,000-35,500/MT (USD 415-421), ex-works. Domestic ship cutting plate scrap prices also heard stable at BDT 41,300-41,500/MT for below 12 mm, at BDT 42,200-42,400/MT for (16-20 mm) and at BDT 43,300-43,500/MT for size more than 20 mm thickness.

Offers for local rebar for medium-scale producers are at around BDT 60,000-61,000/MT (USD 711-723) ex-works, Chittagong including 15% taxes.

Bangladesh turn silent in Ship breaking with weak demand – Ongoing monsoon rains and student protests have led to very saturated start in August in Bangladesh ship cutting market in Chhittagong. Prices assessed at USD 410/LDT for general dry bulk cargo, at USD 425/LDT for tanker cargo and at USD 435/LDT for containers on CNF Bangladesh basis. Although no new sale heard in this week, significant tonnages that arrived in last one months’ time has found its way onto a local yard.