Bangladeshi mills resumed containerized ferrous scrap trades as sellers reduced offer levels to meet the present bids. Domestic steel demand, which had slowed during the month-end, is expected to pick up this week.
The daily Davis Index for containerized shredded, Monday, settled at $420/mt cfr Chattogram, down by $15/mt from Friday. In ten days, prices dropped by $35/mt. UK/EU and US sellers kept offers firm amid limited supply and high freight rates, but bids trailed by $15-20/mt. If the offers drop another $10-15/mt, buyers could restock material before prices rebound, believe traders.
On Monday, bids for shredded were at $410-415/mt cfr Chattogram. But mills await clarity from the Turkey market before securing healthy tonnages.
HMS trades reported at declined prices
The Davis Index for containerized HMS 1&2 (80:20) of the US-origin and Latin America-origin settled at $408.21/mt and $403/mt cfr Chattogram, respectively, down by $9.29/mt and $12/mt, from Friday. Australia-origin HMS 1&2 (80:20) was offered at $390-395/mt, down by $15/mt from last week’s trades.
A decline in Sponge iron prices from India, and Chinese iron ore coming under pressure ahead of Chinese New Year Holidays have pulled HMS scrap prices down.
In the bulk market, offers for Japanese #2 HMS in small bulk were at $400-410/mt cfr Chattogram, down $10/mt from Friday. Japanese billet was offered at $540-550/mt cfr Taiwan.
Indian mills offered Sponge at $350-355/mt cpt Benapole or $360-365/mt cfr Chattogram, down by $5-10/mt from the prior week.
Domestic scrap stable, trades slow
Prices for shipbreaking scrap equivalent to P&S were at BDT37,000-37,500/mt ($437-442/mt) ex-yards. Medium-scale mills in Dhaka lowered their base asking rates for rebar by BDT500-1,000/mt to BDT56,500-57,000/mt ex-works. End-users targeted prices below BDT55,000/mt ex-works.
Despite squeezed margins, large rebar maker mills have offered discounts of BDT1,000-1,500/mt to encourage sales.