Containerized imported ferrous scrap offers in Bangladesh continued their gradual uptrend. In the bulk market, offers remained largely flat. Most large yards are waiting for active demand from Turkish mills for October shipments.
In the domestic market, hopes of a robust recovery in steel demand as soon as the monsoon recedes, kept sentiment positive. Improved cash flow has resulted in better buying capacity for mills. Inventories for ferrous scrap are also depleting which could support restocking in the coming days.
A few mills showed a willingness to pay a premium over other subcontinental buyers. With Pakistani buyers buying shredded at firm prices, sellers could refuse to negotiate at present bid levels. The daily Davis Index for containerized shredded, Tuesday, inched up by $3/mt to $544.25/mt cfr Chattogram. Offers for containerized shredded were at $545-550/mt cfr Chattogram on Tuesday.
In the bulk market, offers from the US west Coast for equivalent HMS 1&2 (80:20) were in the range $525-530/mt cfr Chattogram on Tuesday with buyers’ interest lagging considerably.
The daily Davis Index for HMS 1&2 (80:20) from Latin America was unchanged at $495/mt cfr Chattogram. Offers for the grade were unchanged at above $495-500/mt. But amid tight vessel space, sellers found it difficult to transport materials as scheduled.
The daily index for US-origin containerized HMS 1&2 (80:20) showed an uptick of $2/mt to $508.25/mt cfr Chattogram. Hurricane Ida has impacted the US ferrous scrap flows in some of the regions. The impact, however, is not significant. The mismatch between offers and bids of over $10/mt slowed trading.
The daily Davis index for UK-origin HMS 1&2 (80:20) was unchanged at $500/mt cfr Chattogram. Offers for Australian HMS 1&2 (80:20) rose following elevated containerized freight rates at $510/mt cfr Chattogram. Demand, however, remains weak, and the daily index for Australian HMS 1&2 (80:20) rose by $2/mt to $507/mt cfr Chattogram.