Bangladeshi mills stepped back from the ferrous scrap market as steel demand and prices are set to come under pressure after Ramadan begins in April. Economic activities in Bangladesh are known to slow down during the Ramadan and Eid festivities. Soon after, the arrival of Monsoons could extend the lull for a few more weeks.
Only a few steel mills in Chattogram purchased scrap. This week, however, some Dhaka-based mills could resume trades for restocking amid domestic scrap prices and tight supply.
Ferrous scrap importers in Bangladesh would have to pay additional charges due to congestion at the Chattogram port. Small-scale mills could thus stay away from overseas scrap.
Availability of containers remains scarce and freight rates elevated. Most yards thus preferred to sell in their respective domestic markets.
The Davis Index for containerized shredded, Monday, settled at $457.5/mt cfr Chattogram, down by $10/mt from Friday, with very few deals at $460-465/mt cfr Chattogram late last week. Buying interest on Monday was below $450/mt cfr Chattogram.
In the bulk market, Japanese small bulk scrap offers dropped further as supply has started to ease. Though offers from the US East Coast dropped by $15-20/mt to $460-465/mt cfr Chattogram. Suppliers from the West Coast, however, are yet to lower their asking prices due to elevated bulk freight rates and congestion at various ports in Asia.
The index for HMS 1&2 (80:20) from Latin America was at $439/mt cfr Chattogram, down $4/mt amid falling bids. A deal for containerized HMS 1&2 (80:20) was heard at $440/mt cfr Chattogram late last week. On Monday, bids were at $430-435/mt cfr Chattogram.
The daily Davis Index for US-origin containerized HMS 1&2 (80:20) settled at $442.5/mt cfr Chattogram, down by $5.71/mt. Offers were at $445-450/mt cfr Chattogram but no buyers were interested in those levels.
Shipbreaking scrap prices flat
Offers for ship scrap equivalent to P&S were unchanged at BDT43,500/mt ex-works. Domestic melting HMS 1&2 (80:20) was offered at BDT41,500-42,000/mt ex-yard Chattogram. Buyers opted for shipbreaking scrap for its faster delivery time. Most re-rollers looked to restock domestic ferrous scrap before Ramadan.
Domestic billet prices were unchanged in the range BDT55,000-55,500/mt ex-works Chattogram. Large steelmakers faced liquidity issues and offered a discount on rebar amid weak domestic demand and payment delays from government projects. Offers for rebar were at BDT65,500-66,000/mt ex-works.
Offers for rebar from medium-scale mills in Dhaka were flat at BDT63,000-64,000/mt ex-works. Small-scale mills offered rebar in the range BDT56,500-57,000/mt ex-works.
On Friday, ship plates of 16mm size were offered at BDT49,000-49,500/mt ex-yards, up BDT500/mt from Friday. Supply from ship-breaking activities could increase as most yards are increasing the pace of demolition.