Containerized imported ferrous scrap trades in Bangladesh slowed. Only a few mills showed a willingness to book materials as domestic scrap prices turned up amid tightening supply. Trades are expected to pick up amid lowering inventories at some mills.
Few mills could stay away from purchases till the Chinese New Year holidays end, especially those who had bought bulk in early January and book after gaining better clarity on global trends.
The daily Davis Index for containerized shredded, Monday, settled at $410/mt cfr Chattogram, down by $4.29/mt from Friday and down by $10/mt from the prior Monday. Prices have declined by $100/mt from their peak on Jan 12. Trades for Africa and the UK-origin P&S reported at $415-420/mt cfr Chattogram. Bids for shredded heard at $400-405/mt cfr Chattogram but no suppliers are offering at these levels.
The daily Davis Index for containerized HMS 1&2 (80:20) from the US settled at $391.79/mt cfr Chattogram, down by $5.71/mt while the index for Latin America dropped by $3/mt to $391/mt cfr Chattogram. Few trades heard at the index levels.
Few Chilean sellers offered HMS #1 at $395-400/mt cfr Chattogram on Friday as most focused on the domestic market amid strong demand.
UK yards stayed away from negotiations as many parts of the country are placed under lockdown amid rising COVID-19 infections.
Indian mills offered Sponge iron at $340-350/mt cpt Benapole or $350-360/mt cfr Chattogram stable from Friday amid stable domestic demand.
Chinese iron ore prices rose on Monday, although historically there is a lull ahead of Chinese holidays. Prices have turned up since Brazilian miner Vale expects ore shortage. In bulk, no buyers were active as the mill shied away from the volatile market.
Domestic scrap up on tight supply
On Monday, shipbreaking scrap equivalent to P&S traded at BDT38,500-39,500/mt ex-yards, up BDT500-1,000/mt from the prior Monday. The prices of ship plates flat at BDT44,000-44,500/mt ex-yard.
Domestic billet traded at BDT48,500-49,000/mt ex-works Chattogram. End-users targeted rebar below BDT53,000-54,000/mt ex-works from small-scale producers. Medium-scale rebar producers offered billet at BDT57,000-58,000/mt ex-yard. Domestic steel sentiment is positive in Bangladesh with demand from infrastructure projects rising and expected to return to normal levels soon, said steelmakers.