Imported containerized ferrous scrap trades in Bangladesh remained limited amid a wide gap between bids and offers. But trades could pick up in the coming days amid an uptick in domestic steel demand on the resumption of government infrastructure projects.
Mills with limited inventories are also expected to resume trades for the remaining March-April shipments. Suppliers, however, could stay away from the market till prices rise by another $15-20/mt and match their desired levels.
The daily Davis Index for containerized shredded, Wednesday, settled at $412.5/mt cfr Chattogram, up by $2.5/mt from Tuesday. Most offers were in the range of $415-420/mt cfr Chattogram. Traders claimed the prices have bottomed out and could rise with a revival in demand in the coming days.
A few sellers were quoting $425-430/mt cfr Chattogram for the PNS scrap as a viable range amid acute container shortage. Some even expect it to rise to $435-445/mt cfr Chattogram till February end.
The daily Davis Index for containerized HMS 1&2 (80:20) from the US settled unchanged at $390/mt cfr Chattogram.
The daily index for HMS 1&2 (80:20) from Latin America remained at $390/mt cfr Chattogram amid an extended standoff between buyers and sellers. Mills are looking for HMS 1&2 (80:20) at $375-385/mt cfr from Brazil, Africa, Dubai, and Australia to fulfill immediate requirements. Offers from the US and UK were at $405-410/mt cfr Chattogram amid stronger domestic markets. While Australia yards heard offering bulk above $440/mt cfr Chattogram.
Offers for Sponge iron showed an uptick amid strengthening domestic prices. Sponge iron prices rose by Rs300-500/mt in India. In Bangladesh, offers were at $355-360/mt cpt Benapole or $365-370/mt cfr Chattogram, up by $5/mt from Tuesday.
Many shipbreakers paid $450/ldt for the scrapped vessels during December-January. But could not sell ship breaking scrap in the domestic market below BDT38,500-39,000/mt ex-yards.
On Wednesday, shipbreaking scrap equivalent to P&S traded at BDT39,000-39,500/mt ex-yards, up BDT500/mt from the prior day. The prices for ship plates were flat at BDT44,500-45,000/mt ex-yard.
Domestic billet traded at BDT49,500-50,500/mt ex-works Chattogram with a few raising asking rates to BDT51,000-52,000/mt ex-works on Wednesday.
Trades for rebar picked up amid a resumption of many government projects. End-users purchased rebar at BDT54,000-55,000/mt ex-works from small-scale producers. Medium-scale rebar producers offered it at BDT59,500-60,000/mt ex-works, up BDT1000/mt.