Imported ferrous scrap prices in Bangladesh remained on a downward pressure amid low demand and weak finished steel sales. Small and medium scale mills were unable to increase production volumes due to low cash flows post COVID-19 related lockdowns.
Large scale mills targeted high domestic steel prices, but sales remained lower-than-expected, as a result, mills lowered input costs by reducing bids for imported materials or purchasing domestic ship breaking and melting scrap.
The daily Davis Index for containerized shredded, Thursday, inched down by $1.25/mt to $537.5/mt cfr Chattogram, offsetting yesterday’s recovery. Bids lagged below $530-535/mt cfr Chattogram, but sellers targeted a minimum price of $540/mt cfr Chattogram.
Few deals of UK origin shredded concluded at $544/mt cfr Chattogram and P&S at $548/mt cfr Chattogram, yesterday.
High containerised freight charges on most routes of the US and Europe, forced sellers to prefer any shipping line which could provide them space or transport materials on time. Delays in deliveries compelled most buyers to focus only on short delivery period options.
Reduced bids in Turkey led to a decline in bids from Asian bulk ferrous scrap importers. Bangladeshi mills could resume inquiries for bulk cargoes over containers amid tight supply but remained unwilling to make purchases.
The daily Davis Index for HMS 1&2 (80:20) from Latin America dropped by $4/mt to $493/mt cfr Chattogram. Offers were firm above $495/mt but buyers targeted bids lower by $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) declined to $498/mt and $503/mt cfr Chattogram, respectively, down $2/mt from yesterday. For #1 HMS of UK origin containerised trades were at $510/mt cfr.
On Thursday, Japanese Tokyo Steel slashed prices at its Utsunomiya plant in the Kanto region by JPY500/mt ($5/mt). A reduction in Japanese scrap prices led to a decline in bids from Bangladeshi mills who anticipated a further drop in bulk ferrous scrap prices.
Sentiments remained subdued for shipbreaking yards due to low demand. Prices for ship plates dropped further by BDT500/mt reaching BDT55,800/mt ex yards Thursday.