Imported ferrous scrap trades in Bangladesh have remained slow amid ongoing Eid holidays. The cyclone Amphan badgering the country’s coastline has also impacted the functioning of ports.
Steel mills hold sufficient inventories as they had booked bulk cargoes before the COVID-19 lockdown began. Still, demand for scrap is expected to pick up next week after mills ramp up production.
In bulk markets, offers for mixed ferrous scrap cargoes were in the range of $290-295/mt cfr Chattogram, with no buying interest in the market. Major steelmakers in Bangladesh are operating only at 40-50pc capacity. The bulk freight rates remained cheaper, for US suppliers Asian markets remained more appealing over east Asian countries for ferrous scrap supply.
In the container market, the Davis Index for shredded settled at $287/mt cfr Chattogram on Friday, up by $7/mt from the week prior, but down by $3/mt from Thursday. No major trades were reported. Offers for shredded were in the range of $290-295/mt with no bids. Early this week, very thin trades for shredded concluded at $280-285/mt cfr Chattogram.
The Davis Index for containerised P&S settled at $280/mt cfr Chattogram, up by $5/mt from the prior week. Rising offers pushed index up. Trades, however, were subdued for scrap grades like P&S and busheling. Demand is expected to pick up in the coming months.
The daily index for US-origin HMS 1&2 (80:20) settled at $265/mt cfr Chattogram, unchanged from the prior day. No buyers were interested in bookings.
The daily Davis Index for Latin American HMS 1&2 (80:20) settled at $258/mt cfr Chattogram, unchanged from the prior day. Offers from Brazil were around $260/mt cfr Chattogram with limited buyers in the market.
The Davis Index for Australian HMS 1&2 (80:20) settled at $263/mt cfr Chattogram, up by $5/mt from the prior week. Trades concluded at $260-265/mt cfr Chattogram.
Bangladesh domestic finished steel prices uptick
Domestic steel prices in Bangladesh remained unchanged this week after plummetting by BDT2000-3000/mt in Mid May. Despite weak demand, major steelmakers kept prices for rebar unchanged as they were unable to lower production cost. Recovery in construction activity would support domestic finish steel demand in the near term, said a steelmaker.
The weekly index for domestic billet settled at BDT42,000/mt ex-works Chattogram, up by BDT500/mt.
The Davis Index for domestic HMS 1&2 (80:20) settled at BDT27,000/mt inclusive of local taxes ex-yard Chattogram, up by BDT500/mt from the prior week. The Davis Index for shipbreaking scrap equivalent to P&S settled at BDT28,000/ mt ex-yard, up by BDT500/mt from the prior week.
The Davis Index for rebar from large steelmakers settled at BDT58,000/mt ex-producer, up by BDT500/mt from the prior week.