Imported ferrous scrap prices in Bangladesh are fast closing in on record-high levels seen in January amid strong global cues. But activity in the market is expected to slow next week due to the Eid break. After the festival, increased purchases in Turkey, Pakistan, and Indonesia could support sellers to push offers up further.
Leading steelmakers have started diverting their oxygen supply for medical use. The government-imposed lockdown restrictions will continue until May 16, keeping logistic activities slower than normal.
The daily Davis Index for containerized shredded, Thursday, settled at $503.75/mt cfr Chattogram, up by $6.25/mt from Wednesday. Offers for UK-origin containerized shredded were in the range of $505-510/mt cfr Chattogram on Thursday. But mills resisted paying above $500/mt cfr Chattogram.
In early January, shredded prices had reached an all-time high of $510/mt cfr Chattogram, according to mills.
The index for HMS 1&2 (80:20) from Latin America settled at $480/mt cfr Chattogram, up by $4/mt from Wednesday. Most Latin American yards kept their offers for HMS 1&2 (80:20) above $480-485/mt cfr Chattogram on higher freight charges and active domestic demand.
Demand is strengthening in India which could boost sellers’ sentiments. Bangladeshi mills have thus raised their bids. Amid tight supply and container shortage globally, the daily indexes for US-origin, UK-origin, and Australia-origin containerized HMS 1&2 (80:20) moved up to $482.5/mt, $475/mt, and $483/mt cfr Chattogram, up by $5/mt, $4/mt, and $5/mt, respectively, from Wednesday.
In the bulk market, US West Coast yards kept their offers firm in hopes of a steep rise in the coming days. Expectations for HMS 1&2 (80:20) were above $505-510/mt cfr Chattogram from the US West Coast suppliers. Japanese bulk scrap suppliers have returned to the market after the golden week holidays. Bangladeshi mills, despite Eid holidays, may participate in the Kanto tender for May to compete with other East Asian buyers.
Shipbreaking melting scrap equivalent to P&S traded at BDT47,500-48,000/mt ex-yards. Domestic HMS 1&2 (80:20) prices were close to BDT46,500/mt ex-yard Chattogram on Thursday. Trades for 16mm ship plates were heard at prices above BDT54,500-55,000/mt ex-yards.
Billet offers were unchanged at BDT62,000-62,500/mt ex-works. Large steelmakers kept their offers for rebar above BDT70,500-71,000/mt ex-works. Amid high input costs, a few mills raise rebar prices in the coming days.