Imported ferrous scrap prices in Bangladesh are near the record highs seen in January supported by global cues. Ahead of three days Eid holidays, mills decided to refill depleting inventories as supply remained tight. After the Eid festival, increased purchases in Turkey, Pakistan, and Indonesia are expected to elevate offers further.
Leading steelmakers have started diverting their oxygen supply for medical use while lockdown restrictions will continue until May 16 would keep logistic activities slow than normal.
Following a rise in bulk prices in Turkey, offers in South Asia jump further by $10-15/mt. Bangladeshi large-scale mills have turned active for ferrous scrap purchases as demand is outpacing supply. Most suppliers expect prices to maintain the uptrend for the next few months.
The daily Davis Index for containerized shredded, Wednesday, settled at $497.5/mt cfr Chattogram up $3/mt from Tuesday. Offers for UK-origin containerized shredded above $500-505/mt cfr Chattogram on Wednesday. Last week, mills shied away from deals as they were unable to find material at their target prices but this week trades resumed, albeit, in limited volumes.
The index for HMS 1&2 (80:20) from Latin America settled at $476/mt cfr Chattogram up by $4/mt from Tuesday. Most Latin American yards kept their offers for HMS 1&2 (80:20) above $480-485/mt cfr Chattogram on higher freight charges and active domestic demand. Demand is strengthening in India which could boost sellers’ sentiment in the near terms.
Amid increased HMS trades in containers, the daily indexes for US-origin, UK-origin, and Australia-origin containerized HMS 1&2 (80:20) moved up to $477.5/mt, $476/mt, and $481/mt cfr Chattogram, up by $5.14/mt, $4/mt, and $5/mt, respectively, from Tuesday.
In the bulk market, offers for HMS 1&2 (80:20) were above $500-510/mt cfr Chattogram from the US West Coast suppliers. Post Golden week holidays, Japanese bulk scrap suppliers are expected to await Kanto tender results to gain clarity on prices.
Supply for high-grade scrap has dipped amid an acute shortage of chips, which has forced global automakers to cut production. Containerized busheling offered at prices above $525-530/mt cfr Chattogram on Wednesday from UK-origin, while Australian-origin sold at $520/mt cfr Chattogram.
Shipbreaking melting scrap equivalent to P&S traded at BDT47,500-48,000/mt ex-yards pushing offers even higher. Domestic HMS 1&2 (80:20) was at BDT46,500/mt ex-yard Chattogram, up BDT250/mt from Thursday. Trades for 16mm ship plates were heard at prices above BDT55,000/mt ex-yards.
Billet deals dipped after offers rose by BDT500-1,000/mt from last week to BDT62,000-62,500/mt ex-works. Large steelmakers kept their offers for rebar above BDT70,500-71,000/mt ex-works.
($1=BDT84.5)