Bangladeshi mills continued to stay away from imported ferrous scrap trades seeking clarity on price direction. Steel demand and prices are set to come under pressure with the start of Ramadan from April 12. Both buyers and sellers remained silent and were in no hurry to conclude deals.

 

Importers anticipate the market to drop further amid sluggish industrial activities during Ramadan and after the arrival of monsoons, the lull could extend for a few more weeks. While sellers anticipate that another round of freight hike in April and limited supply could push up prices again. Heavy congestion at Bangladeshi ports could result in additional charges and delays in deliveries, keeping buyers cautious and wait for a price drop. Most yards preferred to sell to domestic buyers as importers were unable to book material.

 

The Davis Index for containerized shredded, Tuesday, settled at $455.36/mt cfr Chattogram, down by $2.14/mt from Monday. Sellers’ indications ranged from $460-465/mt cfr Chattogram while buying interest was below $450-455/mt cfr Chattogram. In a recent deal, a mix of #1 HMS and P&S from Singapore traded at $450/mt cfr Chattogram. While UK-origin Busheling is offered at $470/mt cfr Chattogram.

 

In the bulk market, Japanese small bulk scrap offers dropped after bids dropped in the Kansai scrap tender. The tender for 5,000mt sold at JPY39,930/mt fas Japan, lower by JPY3,026/mt from the Kanto tender’s winning bids on March 10. Suppliers from the US West Coast, however, are yet to lower offers due to elevated bulk freight rates.

 

The index for HMS 1&2 (80:20) from Latin America settled at $435/mt cfr Chattogram, down $4/mt with bids at $430-435/mt cfr Chattogram. The daily Davis Index for US-origin containerized HMS 1&2 (80:20) settled at $442.5/mt cfr Chattogram, unchanged from Monday. 

 

Indian sponge iron export prices ranged from $375-380/mt cpt Benapole or above $400/mt cfr Chattogram. 

 

Domestic steel prices flat

Offers for ship scrap equivalent to P&S were unchanged at BDT43,500/mt ex-works. Domestic Melting HMS 1&2 (80:20) offered at BDT41,500-42,000/mt ex-yard Chattogram. Most re-rollers looked to restock domestic scrap ahead of Ramadan. 

 

Domestic billet prices fell to BDT54,500-55,000/mt ex-works Chattogram. Offers for rebar at BDT65,500-66,000/mt ex-works. 

 

Offers for rebar from medium-scale mills in Dhaka flat at BDT63,000-64,000/mt ex-works. Small-scale mills offered rebar in the range BDT56,500-57,000/mt ex-works.

 

Ship plates of 16mm size offered at BDT49,000-49,500/mt ex-yards. For shipbreakers, after the conclusion of VLCC at $485/mt last week and containers at $460-465/mt cnf Chattogram, offers dropped amid weak buying interest.

 

($1=BDT84.72)

Leave a Reply

Your email address will not be published.