Bangladeshi steel mills resumed trades for imported scrap as demand improved and mills increased restocking activities ahead of Ramadan. Demand and prices for shipbreaking plates continued to rise, boosting sentiment for ferrous scrap imports.
The daily Davis Index for containerized shredded, Tuesday, settled at $461.25/mt cfr Chattogram, up by $5.75/mt. Offers moved up above $465-470/mt cfr Chattogram on another round of freight rate hikes announced by most shipping lines, effective April. A seller from the UK offered a mix of P&S and #1 HMS at $455/mt cfr Chattogram on Tuesday.
Large mills speeded up their purchases of premium scrap grades like P&S and Busheling in Bangladesh. UK-origin busheling in containers offered at $485-490/mt cfr Chattogram on the possibility of tightening industrial generation due to plants shutdowns.
Following rising bulk offers, Japanese traders lifted asking prices for small bulk by $15-20/mt from late last week. #2 HMS was offered above $455-465/mt cfr Chattogram.
The daily index for HMS 1&2 (80:20) from Latin America settled at $442/mt cfr Chattogram, up $6/mt from Monday. Few offers heard at around $450-455/mt cfr Chattogram. Indices for US-origin, UK and Australia origin containerized HMS 1&2 (80:20) settled at $447.5/mt, $437/mt and $448/mt cfr Chattogram up $7-8/mt from Friday.
Steel prices warm up
Amid stable supply from shipbreaking operations, offers for ship scrap equivalent to P&S rose above BDT46,500-47,000/mt ex-works, up BDT2,000/mt from Friday. Domestic melting HMS 1&2 (80:20) offered at BDT45,000/mt ex-yard Chattogram on Tuesday.
Domestic billet prices rose to BDT57,000-57,500/mt ex-works Chattogram, up BDT1,500-2,000/mt from late last week. Southeast Asian billet offers rose above $620-625/mt cfr amid high freight charges.
Most believe prices could remain unchanged for the next two weeks and then drop by at least BDT5,000/mt in April. Indian Sponge iron export prices reported at $385/mt cpt Benapole or $405-410/mt cfr Chattogram on increased domestic demand and consumption.
For large steelmakers’ rebar, asking rates increased by BDT1,500/mt to BDT68,500-69,000/mt ex-works. Large mills cancelled discounts amid steady demand and higher landed cost for imported scrap. Rebar from medium-scale mills in Dhaka rose BDT1500-2000/mt to BDT65,000-66,000/mt ex-works. Small-scale mills sold rebar in the range of BDT60,000-61,000/mt ex-works.
On Tuesday, 16mm ship plates offered at BDT55,500-56,000/mt ex-yards, up BDT2,500-3,000/mt from Friday. Supply from ship-breaking activities could increase as most yards are increasing the pace of demolition activities.
($1=BDT84.72)