Imported ferrous scrap prices in Bangladesh dropped by $10/mt from the prior week. Mills preferred bulk cargoes, as prices dropped by $15-20/mt from the earlier bulk deal concluded in late January.
After over a month’s gap mills resumed bulk scrap bookings to refill their inventories. Early in the week, a leading steel mill booked two bulk cargoes from the US West Coast for April shipments. Of the two, the first shipment of 32,000mt comprised of HMS1&2 (80:20) at $291/mt cfr Chattogram and shredded at $296/t cfr Chattogram.
Other bulk cargo comprised of 30,000mt mixed scrap comprising of HMS 1&2 (80:20) at $290/mt cfr Chattogram, shredded at $295/mt cfr and P&S at $300/mt cfr Chattogram. Later in the week, yet another steel mill booked 32,000mt mixed bulk ferrous scrap cargo at the same prices.
Two Japanese bulk cargoes of Busheling (shindachi) traded in the range of $296-297/mt cfr Chattogram, down by $15-20/mt from price levels two weeks ago. Japanese H1:H2 scrap in small bulk cargoes was offered at $270-275/mt cfr Chattogram, down by $10/mt from the prior week, with no takers.
The Davis Index for containerised shredded scrap settled at $304/mt cfr Chattogram on Friday, down by $18/mt from a week ago. Containerised shredded traded at $305-310/mt cfr Chattogram early this week.
The Davis Index for containerised P&S scrap settled at $305/mt cfr Chattogram on Friday, down by $15/mt from a week ago. P&S traded at $305-310/mt cfr Chattogram early this week. Bids for P&S subsequently fell to $300/mt cfr levels late in the week.
Mills have been hoping for a rise in finished steel prices since the past month and attempted to raise their offers last week. But demand failed to pick up and finished steel prices remained flat for yet another week.
Construction activities in the months of March and April typically rise in Bangladesh and mills usually restock scrap ahead of Ramazan holidays. This year, however, demand for steel may remain subdued.
The Davis Index for US origin containerized HMS 1&2 (80:20) fell to $283/mt cfr Chattogram from $290/mt in the prior week. Trades for the same grade from UK concluded at $283/mt cfr Chattogram early in the week.
Australian HMS 1&2 (80:20) traded at $288-290/mt cfr Chattogram, down $10-12/mt from the prior week.
The Davis index for Latin American HMS 1&2 (80:20) settled at $278/mt cfr Chattogram, down $17/mt from the prior week. Trades were reported in the range of $275-280/mt cfr after traders refused earlier bids at $270/mt cfr Chattogram.
Domestic ferrous scrap prices in Bangladesh were flat as mills were cautious of ramping up production amid Covid-19 fears. Prices for imported scrap ships fell by $10/ldt. But buyers faced credit crunch due to delays in banking process.
The Davis Index for domestic ship breaking HMS 1&2 (80:20) settled at BDT30,000/mt inclusive of local taxes ex-yard Chattogram, down by BDT500/mt ($6/mt) from the prior week.
The Davis Index for large steelmakers’ rebar settled at BDT61,500/mt ex producer, unchanged from the prior week.