Imported containerized ferrous scrap offers remained high in Bangladesh amid shipping line issues and additional charges at the ports. Few offers were active in the containerised market as most steel mills opted for bulk cargoes with around five bulk trades heard last week. Buyers turned cautious on Monday with a sharp drop in Chinese steel futures.
Meanwhile, Bangladesh’s port authority has imposed additional charges for unloading materials as depot charges.
Buying sentiments have turned bearish after a lockdown and the government could extend the restrictions further. Also, ahead of Ramadan, buyers turned reluctant.
The daily Davis Index for containerized shredded, Monday, settled at $478.93/mt cfr Chattogram, up $1.43/mt from Friday. UK-origin containerized shredded offered at $485-490/mt cfr Chattogram after trades reported at $475-478/mt cfr Chattogram.
Latin American yards preferred to offer in the domestic market as Bangladeshi bids turned unattractive. Yards held asking prices firm amid vessel space crunch. The daily index for HMS 1&2 (80:20) from Latin America settled unchanged at $458/mt cfr Chattogram.
In the US domestic market, April monthly settlements reported higher-than-expected prices. The indices for US-origin, UK-origin, and Australia-origin containerized HMS 1&2 (80:20) settled at $464.64/mt, $453/mt, and $465/mt cfr Chattogram, respectively. Deals for HMS 1&2 (80:20) heard at $460-465/mt cfr Chattogram pushing offers to $465-470/mt cfr Chattogram on Monday. Buyers turned cautious on Monday with a sharp drop in Chinese steel futures.
Domestic steel prices rise
Increased demand for the domestic scrap and bullish global cues kept offers stable for ship scrap equivalent to P&S at around BDT45,500/mt ex-yards. Prices rebounded amid pre-Ramadan restocking after inching down late last week. Domestic HMS 1&2 (80:20) remained at BDT44,500/mt ex-yard Chattogram.
On Monday, domestic billet offers remained at BDT60,000-60,500/mt ex-works Chattogram. Prices could lose steam in Ramadan, believe mill owners.
Large steelmakers held rebar asking rates at higher levels on higher imported scrap prices. Rebar prices remained at BDT69,000-71,000/mt ex-works.