Imported scrap offers continued to firm up on global cues in Bangladesh despite softening domestic steel prices. Sellers refused to accept present bids for containerized scrap. Some large-scale steelmakers have bought bulk to meet their melting requirements. But most medium and small-scale mills were away from the trades but are expected to be in the market soon.
In the domestic market, steel demand was under pressure as end-users expect a correction ahead of monsoons which is known to impact construction activities. Mills offered discounts for billets and rebars to encourage trading.
The daily Davis Index for containerized shredded, Wednesday, rose to $540/mt cfr Chattogram, up by $5.44/mt. Suppliers refused to accept lower bids, citing rising international prices. Offers for containerized shredded in the range of $540-555/mt cfr Chattogram on Wednesday. A few mills raised bids by over $5/mt to match sellers’ expectations on tight supply for high grades like shredded, busheling, and P&S.
In the bulk market, offers are expected to pick up by $5-10/mt with a rise in Turkish bulk prices. Major shipping lines have increased detention charges, adding to large-scale steelmakers’ woes. This has resulted in increased input costs and squeezed margins.
The daily Davis Index for HMS 1&2 (80:20) from Latin America, Wednesday, scaled up by $4/mt to $503/mt cfr Chattogram. Sellers were targeting above $505/mt cfr Chattogram for HMS 1&2 (80:20) and above $510/mt cfr for #1 HMS from Latin America.
Offers for HMS 1&2 (80:20) from the UK were at $515/mt cfr Chattogram on Wednesday but mills’ counter bids were not above $500/mt cfr amid domestic softness. The index for US-origin containerized HMS 1&2 (80:20) rose by $4.5/mt to $514.5/mt cfr. The index for UK-origin HMS 1&2 (80:20) was at $508/mt cfr, while that for Australia-origin at $513/mt cfr Chattogram, both up by $3/mt on Wednesday.
For busheling, bids of $570-575/mt cfr Chattogram failed to attract sellers who are targetting prices above $600/mt cfr Chattogram.
In the domestic market, ship scrap equivalent to P&S dropped by BDT1,000/mt to BDT46,000-46,500/mt ex-yards. Buying interest for domestic HMS 1&2 (80:20) was in the range of BDT45,000-45,500/mt ex-yards Chattogram, down BDT500/mt. Billet prices were at BDT58,500-59,000/mt ex-works, down BDT1,500/mt on Wednesday.