Domestic steel and shipbreaking scrap offers have bounced back after a week-long downtrend following strong imported scrap offers in Bangladesh. On bullish global cues, some mills gained the confidence to restock material at high prices. However, trades for imported scrap remained thin with both buyers and suppliers holding back. On Thursday, sentiments in the market were positive after the ‘Victory Day’ holiday on Wednesday.
The daily Davis Index for containerized shredded, Thursday, settled at $445/mt cfr Chattogram, up by $5/mt. Containerized offers from the UK and US mills are scarce while a few are targeting only above $445-450/mt cfr Chattogram. Bids for Australia and Latin American shredded scrap were at $435/mt cfr Chattogram on Thursday, with a couple of trades materializing.
In the bulk market, in absence of firm offers for shredded from the US West Coast, indications crossed $460-470/mt cfr Chattogram mark. Bulk scrap suppliers were focused on catering to Turkish demand where they are being paid high. For Asian bulk buyers, bulk offers have turned unrealistic. Many construction projects have paused temporarily amid cash issues again.
The Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $430/cfr Chattogram, up by $5.71/mt from Wednesday. Very few offers were at $425-430/mt cfr Chattogram from Australia on Wednesday. Some trades for mixed HMS scrap in containers from Australia, New Zealand, and Chile were at $420-425/mt cfr Chattogram. Following bullish global cues and stronger domestic markets, Latin American traders are offering a mix HMS #1 at offers $425-430/mt cfr Chattogram on Thursday.
Domestic scrap uptick on supportive shipbreaking
One of the leading shipbreakers in Chattogram said that in the last few days, there has been an increase in number of offers pouring in for shipbreakers. However, buyers are stepping back as the prices are high and incompatible with the local market where demand is still slow.
On the other hand, for shipbreakers, ships are being quoted and booked above $430-440/ldt mark, forcing them to ask high, supporting domestic sentiments.
Prices for domestic ship-breaking scrap equivalent to P&S had dropped from BDT41,000/mt ex Chattogram to BDT37,000-37,300/mt ex Chattogram till Wednesday. On Thursday, trades for scrap were reported at BDT37,700-38,000/mt ex Chattogram. This trend is likely to extend with most shipyards have low stocks while appetite for ships is very high, commented a leading shipbreaker in Chattogram.
There were two VLCC sales for shipbreakers over the past week with a 21,000ldt VLCC at $380/mt and another 21,000ldt at $434/ldt cnf. One vessel of around 15,000ldt beached for breaking activities.
Large-scale rebar makers kept their base asking prices for rebar at BDT62,000-64,000/mt ex-works on Thursday to keep the spread between scrap and rebar stable. Demand, however, was slow. Billet prices too remained more or less flat on Thursday.
($1= BDT84.79)