Bangladeshi steel mills are eager to raise steel prices further to accommodate high imported scrap prices despite prices moving up by BDT1,000/mt this week. Amid indications of another round of price hike by large steel producers, secondary steelmakers resumed trades in containers to refill scrap inventories.
The daily Davis Index for containerized shredded, Tuesday, settled at $335.31/mt cfr Chattogram up by $1.56/mt from Monday. Yards refused to offer shredded below $340-345/mt cfr Chattogram on Tuesday amid tight supply. A Dhaka-based mill bought few containers of Australian shredded at $325-330/mt cfr Chattogram. P&S from the UK and Latin America traded at $335-340/mt cfr Chattogram. UK-based suppliers refused to offer shredded below $345/mt cfr Chattogram on Tuesday, said a trader.
The index for containerized US-origin HMS 1&2 (80:20), Tuesday, settled at $322.21/mt cfr Chattogram, up $0.54/mt from Monday. Trades for the UK and US-origin HMS 1&2 (80:20) reported at $320-325/mt cfr Chattogram.
In the bulk market, offers from US west coast suppliers were heard at $330/mt cfr Chattogram. Steel mills preferred to stay away from the bulk trades on Tuesday but might close deals in the coming days.
The daily index for Latin America-origin HMS 1&2 (80:20) settled at $316/mt cfr Chattogram, up $1/mt from Monday. South American yards sold HMS #1 at $320-322/mt cfr Chattogram. While buying interest was still around $312-315/mt cfr Chattogram for HMS 1&2 (80:20).
Major steelmakers in Chattogram traded billets at BDT42,000/mt ($495/mt) ex-works Chattogram, up BDT500-1,000/mt from the prior week close. Large steel producers like BSRM and AKS could raise prices in the next few days. On Tuesday they offered rebar at BDT57,000/mt and BDT55,000/mt ex-works, respectively. There is a possibility of a further hike by BDT500-1,000/mt in steel prices to adjust higher input costs.
Dhaka-based finished steel producers sold rebars at BDT50,000-50,500/mt ex-works, at prices up by BDT1,000-1,500/mt from the prior week. Domestic shipbreaking scrap equivalent to P&S traded at BDT32,000-32,500/mt ex-yard Chattogram, up by BDT1,000/mt. Offers for shipbreaking scrap has already jumped this week as domestic demand has started recovering in the country.
“We sold over 700-800mt of domestic ship breaking scrap in a single day, on Monday, giving a boost to inquiries for imported ferrous scrap too at higher levels,” said one of the leading ship recyclers in Bangladesh. Domestic HMS 1&2 (80:20) was offered at BDT30,000/mt ex-yard Chattogram. The availability of low-priced scrap has decreased, therefore mills are likely to raise finished steel prices to offset input costs.