Deals for HMS from various origins and containerized shredded from the UK were reported as a few steel mills in Bangladesh resumed bookings of imported ferrous scrap. Rainfall in many regions of the country kept steel trading low. Only a couple of mills in Dhaka with low inventories have resumed bookings this week.
Amid tight availability and firm offers, the Davis Index for containerized shredded rose by $1.67/mt from Monday to settle at $550.42/mt cfr Chattogram on Tuesday. After a few deals for shredded reported from the UK at $540-545/mt cfr Chattogram last week, offers shot up above $555-565/mt cfr Chattogram. Bids, however, remained below $550/mt cfr Chattogram. A mill in Dhaka was heard to have paid $565/mt cfr Chattogram.
The daily Davis Index for HMS 1&2 (80:20) from Latin America, Tuesday, rose by $2/mt to $514/mt cfr Chattogram, deals for HMS 1&2 (80:20) concluded at $515-525/mt cfr Chattogram. Offers for #1 HMS remained above $515-520/mt cfr Chattogram amid better demand in other Asian countries.
Elevated freight rates driven by container shortages and port congestion at the Chattogram added to the landed costs for mills. High bulk freight levels also boosted bulk offers. and expectations for mixed cargo were at $570-580/mt cfr Chattogram.
On Tuesday, the index for US-origin containerized HMS 1&2 (80:20) rose by $3.93/mt to $523.93/mt cfr Chattogram. An uptick in demand boosted the indexes for HMS 1&2 (80:20) of UK-origin and Australia-origin by $3/mt each to settle at $518/mt and $523/mt cfr Chattogram, respectively.
In the domestic market, offers for ship scrap equivalent to P&S were unchanged at BDT47,000-47,500/mt ex-yards.
Shipbreaking plate offers were also flat at BDT53,500/mt ex yards Chattogram. Scrapped vessel offers for shipbreakers were at $560-570/mt cfr Chattogram. Several small-scale mills were busy closing their books ahead of the fiscal year-end. Steelmakers have decided to sell off inventories amid a bearish monsoon outlook.