Inquiries for imported scrap by Bangladeshi steel mills spiked Wednesday following strengthening global cues. Trades for HMS in containers resumed briskly, while very few deals heard for shredded and P&S scrap as offers rose to almost a 10-year high. Buyers are keen on booking scrap but many suppliers are yet to return to the market.
The daily Davis Index for containerized shredded, Wednesday, settled at $482.86/mt cfr Chattogram, up $5.36/mt from Tuesday. Offers for containerized shredded from the UK and US yards heard at $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. Offers for new production stamping scrap from the UK and busheling bundles from Brazil heard at $510-515/mt cfr Chattogram. P&S at $490-495/mt cfr Chattogram.
With the acceptance of shredded offers at $480-485/mt cfr Pakistan, suppliers are aiming for higher prices in the Bangladesh market. However, mills are resisting higher offers. The Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $472.14/mt cfr Chattogram, up $5/mt from Tuesday. US recyclers are eyeing $50-100/mt higher for the rest of January amid strong domestic demand.
The Davis Index for containerized HMS 1&2 (80:20) from Latin America settled at $470/mt cfr Chattogram, up $5/mt from the prior day. Some deals reported at the index price, but few mills bid at $465/mt cfr for the same grade irrespective of origins. Offers for HMS #1 from Chile heard at $480-485/mt cfr Chattogram on Wednesday. Australian HMS 1&2 (90:10) in containers offered at $475-480/mt cfr Chattogram. While bulk offers for HMS 1&2 (80:20) heard at $510-515/mt cfr Chattogram.
Domestic steel prices strengthened in Bangladesh following global cues. Shipbreaking scrap equivalent to P&S was offered stable at BDT43,000-43,500/mt ex-yards on Wednesday. Domestic HMS 1&2 (80:20) 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 $450-480/ldt.
Yards witnessed strong demand for ship scrap, however, very limited scrapped vessels are being offered from Europe amid renewed lockdowns following the resurgence of COVID-19.
Billet prices in Bangladesh heard at BDT53,500-54,000/mt ex-works Chattogram. Medium-scale mills in Dhaka held their offers for rebar at BDT62,000-63,000/mt ex-works. Trades gained momentum, pushing rebar offers from large mills to BDT66,000-67,000/mt ex-works on Wednesday.
($1= BDT84.76)