Ferrous scrap import offers in Bangladesh remained firm on strong cues in the global steel market. A rise in bulk prices in Turkey has also lifted offers in South Asia. Demand, however, is still under pressure with the government extending lockdown until May 16 to control the spread of COVID-19. Steelmakers could lower their production in the coming day as many mills have started diverting their oxygen supplies to hospitals.
Bangladesh’s steel industry is staring at weak steel demand amid the ongoing Ramadan festival and lockdown, which will be followed by the monsoon season. Rains in Bangladesh are known to slow construction projects which affects steel sales. Only a few deals for imported scrap were heard in Chattogram.
The daily Davis Index for containerized shredded, Tuesday, settled at $494.5/mt cfr Chattogram up $2/mt. Offers for UK-origin containerized shredded were in the range of $495-500/mt cfr Chattogram on Tuesday.
Most Latin American yards kept their offers for HMS 1&2 (80:20) above $475-480/mt cfr Chattogram on higher freight charges. The index for HMS 1&2 (80:20) from Latin America settled at $472/mt cfr Chattogram up by $3/mt.
The daily indexes for containerized HMS 1&2 (80:20) of US-origin rose by $2.36/mt to Rs472.36/mt; UK/EU-origin increased by $2/mt to $469/mt, and Australia-origin was up by $2/mt to $476/mt cfr Chattogram.
Globally, the supply for busheling has dipped as an acute shortage of chips has forced global automakers to shutter operations. The index for containerized busheling rose by $2/mt to $522/mt cfr Chattogram.