Imported ferrous scrap prices in Bangladesh surged on improved demand and tight global supply. Despite the Eid holidays, a few buyers continued to book imported scrap as the supply of domestic scrap has declined. COVID-19-related lockdown in Bangladesh will continue till May 16, but new infections have dropped, boosting sentiment in the market.
The daily Davis Index for containerized shredded, Wednesday, settled at $527.5/mt cfr Chattogram, up by $12.5/mt. Suppliers from UK/EU offered containerized shredded at $535-545/mt cfr Chattogram. Many yards were interested in catering to only bulk inquiries, with the availability of empty containers low. Offers for the UK-origin P&S in containers were above $550-555/mt cfr Chattogram on Wednesday.
The daily index for HMS 1&2 (80:20) from Latin America settled at $498/mt cfr Chattogram, up by $8/mt. Most Latin American yards kept their offers for HMS 1&2 (80:20) above $495-500/mt cfr Chattogram on higher freight charges and active domestic demand. Amid a bullishness in the market, traders have turned active and many were keen to take positions for next week, once the markets re-open after the Eid holidays.
Most workers have returned to their hometowns for Eid celebrations resulting in production halts at small-and-medium-scale mills.
On account of tight supply at most yards and lowered collection rates, the daily indexes for US-origin, UK-origin, and Australia-origin containerized HMS 1&2 (80:20), Wednesday, moved to $505/mt, $495/mt, and $505/mt cfr Chattogram, up by $9.29/mt, $7/mt, and $9/mt from a day prior, respectively.
In the bulk market, there were very few offers as most yards were focused on the Turkish market. On Wednesday, indications for HMS 1&2 (80:20) were at $540-545/mt cfr Chattogram for June-July shipments. For shipbreakers, offers for scrapped vessels jumped above $560-580/ldt this week, following a surge in melting prices.
Despite the rise in imported scrap, steel prices in Bangladesh are yet to match producers’ expectations. End-user demand remained weak. Next week, steel mills are hopeful of a rise in prices by BDT5,000-6,000/mt at minimum for all products. Large steelmakers are expected to announce hikes once they return to usual operation this year. The upcoming monsoon season could have a limited impact on the market in the near term.
Offers for domestic ship breaking scrap equivalent to P&S reached a record-high BDT50,000/mt ex-yards Chattogram.
($1=BDT84.74)