Imported ferrous scrap bids in Bangladesh dropped especially for HMS amid weak domestic steel sales and lower-than-expected recovery in demand. Mills eyed a price hike for domestic steel but were compelled to reduce bids for imported materials.
Suppliers could offer bulk cargoes to Asia in the absence of Turkish bulk trades and an increase in selling pressure, this coupled with the shortage of containers could support Bangladeshi mills to resume inquiries for bulk cargoes over containers.
The daily Davis Index for HMS 1&2 (80:20) from Latin America was unchanged at $497/mt cfr Chattogram. Offers were firm but buyers targeted bids lower than $10/mt for HMS grades.
Sellers remained silent after low bids for HMS. The daily index for US-origin containerized HMS 1&2 (80:20) remained unchanged at $505/mt cfr Chattogram. The indexes for UK-origin and Australia-origin HMS 1&2 (80:20) settled at $500/mt and $505/mt cfr Chattogram, respectively, unchanged from yesterday.
Demand from East Asian nations is recovering in containers resulting in a minimum $5/mt rise in prices in Taiwan and Indonesia. Suppliers in Australia and Singapore kept offers firm.
In the Asian bulk market, South Korean mills bought #1 HMS equivalent scrap at $475/mt cfr South Korea from a New Zealand supplier yard. Australian yards offered bulk cargoes to Vietnam at prices lower than the prior week.
Meanwhile reduced Japanese ferrous scrap asking rates of #2 HMS at $410-415/mt fob Japan, have encouraged mills in Bangladesh to inquire for bulk over containers but ferrous scrap inventories with most leading mills could be enough to match present demand requirements.
The daily Davis Index for containerized shredded, Wednesday, was slightly up by $1.25/mt to $538.75/mt cfr Chattogram. Bids lagged at below $535/mt cfr Chattogram but sellers targeted prices around $540-545/mt cfr Chattogram and were unwilling to match rates quoted by sellers.
Demand for steel remained weak as small and medium mills struggled with cash flows. Retail sales were affected by the COVID-19 pandemic and monsoon season which could improve post mid-September.
($1=BDT85.2)