Inquiries for imported scrap by Bangladeshi steel mills have started increasing amid low inventories and tight domestic scrap supply on Tuesday. Although buyers were keen for trades, many suppliers are yet to come back to the market.
Aided by the stimulus packages, large mills could recover faster in the coming weeks. Few mills were interested in bulk cargoes before Chinese buyers start competing in the market. Ferrous scrap exports to China are yet to resume as most sellers await clarity on documentation and restrictions.
The daily Davis Index for containerized shredded, Tuesday, settled unchanged at $477.5/mt cfr Chattogram. Indications for containerized shredded from the UK and US yards were $485-500/mt cfr Chattogram. Availability, however, remains a concern with yards running short of material. Some recyclers from Europe and the UK are yet to return from the new year holidays. Asking prices for new production stamping scrap from the UK and busheling bundles from Brazil were $510-515/mt cfr Chattogram. PNS was at $490-495/mt cfr Chattogram.
The Davis Index for containerized HMS 1&2 (80:20) of the US-origin settled at $467.14/mt cfr Chattogram. US recyclers are eyeing a rise of $50-100/mt in prices for the rest of January, anticipating strong domestic demand. Many sellers hesitated from offering any material for exports.
The Davis Index for containerized HMS 1&2 (80:20) from Latin America settled at $465/mt cfr Chattogram, unchanged from the prior day. Offers for HMS #1 from Chile were heard at prices around $470-475/mt cfr Chattogram.
Australian HMS 1&2 (90:10) in containers traded at $467-470/mt cfr Chattogram. In the bulk market, no offers for the grade were heard from Japan and Australia. Offers for HMS 1&2 (80:20) in bulk were at $510-515/mt cfr Chattogram.
Domestic steel prices strengthened in Bangladesh following global cues. Shipbreaking scrap equivalent to P&S was offered at BDT43,000-43,500/mt ex-yards on Tuesday. Domestic HMS 1&2 (80:20) was flat at BDT41,500-42,500/mt ex-yards Chattogram and shipbreaking plates traded at BDT48,000-48,500/mt ex-yards. For shipbreakers, offers rose to $440-450/ldt, but yards stayed away from bookings.
Billet prices in Bangladesh on Tuesday were at BDT53,000-54,000/mt ex-works Chattogram. Medium-scale mills in Dhaka increased their asking rates for rebar to BDT62,000-63,000/mt ex-works. Trades gained momentum, pushing offers for rebar from large mills at BDT66,000-67,000/mt ex-works on Tuesday. Large mills are targeting rebar prices of BDT70,000/mt ex-works to pass-on the rise in input costs.