Imported ferrous scrap prices in Bangladesh dropped this week. Mills booked scrap only to cater to the usual domestic finished steel demand. Freight charges remained high amid scarcity of containers. Steelmakers, thus, opted for bulk.
Bulk prices continued their decline and fell $10/mt from the prior week. A major steelmaker booked a bulk cargo from the US West Coast comprising of shredded at $270/mt cfr Chattogram and HMS 1&2 (80:20) at $265/mt cfr Chattogram, according to Davis Index sources. An Australian-origin bulk trade comprised of HMS 1&2 (80:20) at $272/mt cfr Chattogram and shredded at $277/mt cfr Chattogram. The Davis Index for containerized shredded scrap settled at $284/mt cfr Chattogram on Friday, down $20/mt from the prior week. Thin trades for containerized shredded were at $285/mt cfr Chattogram. A few yards in the EU and UK offered shredded at $290-300/mt cfr Chattogram, with no takers at those levels.
The Davis Index for containerized P&S settled at $290/mt cfr Chattogram on Friday, down by $15/mt from the prior week. Bids for P&S subsequently fell to $280-285/mt cfr levels. The Davis Index for US origin containerized HMS 1&2 (80:20) declined to $260/mt cfr Chattogram, from $272/mt in the prior week. Trades for the same grade from the UK concluded at $270-275/mt cfr Chattogram early in the week. The Davis Index for Australian HMS 1&2 (80:20) settled at $268/mt cfr Chattogram, down by $20/mt from the prior week.
The Davis index for Latin American HMS 1&2 (80:20) settled at $263/mt cfr Chattogram, down by $12/mt from the prior week. Finished steel prices in the Brazilian market increased as major steelmakers in the country raised HRC prices. This gave scrap offers to seaborne markets a lift early in the week. These offers subsequently fell after a drop in global ferrous scrap prices.
Domestic steel prices drop on COVID-19 panic
Operations at mills were hampered as Bangladesh, which has 17 cases of COVID-19, tries to contain the situation early. The Davis Index for domestic ship-breaking HMS 1&2 (80:20) settled at BDT30,000/mt inclusive of local taxes ex-yard Chattogram on Friday, down by BDT500/mt ($6/mt) from the prior week.
Finished steel demand has started declining has started declining with the suspension of construction activities, pressuring its prices. The Davis Index for large steelmakers rebar stands at BDT59,750/mt ex-producer, down by BDT750/mt from the prior week. Mills continued to offer a discount of BDT500-1,000/mt ($6-12/mt) on the base price of rebars in the domestic market.