The Davis Index for containerized shredded settled at $549/mt cfr Chattogram on Wednesday, down by $3/mt from Tuesday. An EAF mill in Chattogram booked 32,000mt cargo from the US West coast supplier yard at $540/mt cfr Chattogram comprising full shredded late prior week.
Some large-scale mills in Bangladesh were active for containerized bookings to refill inventories. But most resisted the present offer levels. Sellers, however, were unwilling to lower their offers. Steel trading in the local market remained affected due to the monsoon.
Following softening Turkish bulk prices in the absence of major deals, buyers resisted high offer levels in Asia. The Davis Index for containerized shredded settled at $549/mt cfr Chattogram on Wednesday, down by $3/mt from Tuesday. A few trades for EU/UK origin-shredded were reported at $548-550/mt cfr Chattogram. Bids then dropped to $540-545/mt cfr Chattogram on late Wednesday.
A few deals for P&S scrap in containers were at prices below $560/mt cfr Chattogram from the UK and Europe. Elevated freight rates and a global shortage of containers have kept landed costs for containerized scrap high.
Bangladesh was the most active and highest-paying market in South Asia. Still, deals for containerized scrap could remain limited in the country as most mills were interested in negotiating for bulk.
The daily Davis Index for HMS 1&2 (80:20) from Latin America, Wednesday, dropped by $2/mt to $518/mt cfr Chattogram. Deals for HMS 1&2 (80:20) concluded at $515-518/mt cfr Chattogram pulling bids down to $510-512/mt cfr. Offers for #1 HMS were at $520-525/mt cfr Chattogram.
On Wednesday, the daily index for US-origin containerized HMS 1&2 (80:20) settled at $527.5/mt cfr Chattogram, down by $5/mt. Trades for the material were reported at $520-530/mt cfr, as softening sentiments weighed bids.
Earlier this week, Dubai origin HMS 1 and P&S traded at $545/mt cfr while HMS 1&2 (80:20) was at $525-528/mt cfr Chattogram. Blue steel traded at $565-570/mt cfr. Bids for HMS 1&2 (80:20) were below $520/mt cfr Chattogram on Wednesday. The daily indexes for UK-origin and Australia-origin HMS 1&2 (80:20) were at $520/mt and $527/mt cfr Chattogram, respectively, both down by $3/mt.
Scrap availability was tight in the domestic market. Mills with ship-breaking yards opted for scrapped vessel purchases.
Ship scrap equivalent to P&S was offered at BDT47,500-48,500/mt ex-yards, down BDT500-1000/mt. Several small-scale mills were busy closing their books as the fiscal year ends soon.
Shipbreaking yards have decided to wait for prices to cool off amid tepid steel demand and seasonal slowdown.
($1=BDT84.7)