Imported ferrous scrap bookings in Bangladesh were slow as the government tightened restrictions to curb the pandemic spread. The country has even deployed the army to ensure discipline. Indonesia announced emergency curbs as infections surged across parts of the Asia-Pacific.
Like Pakistan, Bangladesh too observed July 1 as a banking holiday in Bangladesh keeping activities mostly suspended. All government, non-government and autonomous organizations will remain shut with the possibility of the lockdown extending further.
With trading for shredded picking up in other markets, asking prices in Bangladesh remained elevated. The daily Davis Index for containerized shredded was at $551.25/mt cfr Chattogram on Thursday, up by $2.5/mt. Due to weak finished steel sales amid national lockdown, most mills either postponed their purchases or kept bids very low. Sellers also diverted their focus to Pakistan and Turkey, which were better-paying markets amid tight availability.
Reduced banking hours and laborers rushing to their hometowns have negatively impacted the steel industry among others. Monsoon seasonal slowdown also kept players out of the market.
The daily Davis Index for HMS 1&2 (80:20) from Latin America, Thursday, settled at $518/mt cfr Chattogram, up by $2/mt on recovery in offers. Following strengthening cues, the daily index for US-origin containerized HMS 1&2 (80:20) was at $530/mt cfr Chattogram, up by $2.5/mt. The indexes for the UK and Australia-origin HMS 1&2 (80:20) also settled at $520/mt flat and $528/mt, respectively, both up $1/mt.
On high input costs, offers for rebar and billet remained firm with only a few deals. Steelmakers are eying a hike in asking rates to accommodate the rise in imported scrap prices. Demand for Indian sponge iron imports has plummeted on transportation challenges. Domestic scrap supply also remained low on reduced demolition rates. But the slowdown in steel consumption due to monsoons has balanced out the demand-supply equation.