Trades for imported ferrous scrap in Bangladesh remained subdued amid ongoing Eid holidays and declined domestic steel demand. On May 20, cyclone Amphan slammed coastal areas of Bangladesh along with Indian states of West Bengal and Odisha. The impact has disrupted operations at Chattogram port, hitting import trades. Also, casual labourers have left for their hometowns to celebrate Eid holidays, slowing mill activity.
In bulk markets, offers for mixed scrap cargoes were reported at $285-295/mt cfr Chattogram, with no buying interest in the market.
In the container market, the daily Davis Index for shredded settled at $280/mt cfr Chattogram on Friday, up by $7/mt from the prior day. Early this week, trades for shredded concluded at $275/mt cfr Chattogram. Offers for shredded were in the range of $280-285/mt with no bids in the market.
The Davis Index for containerised P&S settled at $275/mt cfr Chattogram, up by $6/mt from the prior week. The daily Davis Index for US-origin containerised HMS 1&2 (80:20) rose by $10/mt to $263/mt cfr Chattogram on Friday. US suppliers increased offers citing a rise in Turkish bulk scrap bookings.
The daily index for Latin America-origin HMS 1&2 (80:20) rose by $5/mt to $250/mt cfr Chattogram. Trades concluded at the index price. Mills would have to raise bids by $5-10/mt in the coming days to procure materials.
The daily index for US-origin HMS 1&2 (80:20) settled at $263/mt cfr Chattogram on Friday, up by $10/mt. Trades were reported in the range of $262-265/mt cfr Chattogram.
The Davis Index for Australian HMS 1&2 (80:20) settled at $258/mt cfr Chattogram, up by $5/mt from the prior week.
The daily Davis Index for Latin American HMS 1&2 (80:20) settled at $250/mt cfr Chattogram, up by $5/mt from the prior day. Offers from Brazil were in the range $255-260/mt cfr Chattogram with limited buyers in the market.
Bangladesh domestic finished steel prices flat on subdued demand
After falling by BDT2,000-3,000/mt last week, domestic steel prices in Bangladesh remained unchanged this week. Despite weak demand, major steelmakers kept prices for finished steel unchanged as they were unable to lower production cost. Only a few infrastructure projects have resumed activity. Others are expected to follow suit in the coming days.
The weekly index for domestic billet settled at BDT41,500/mt ex-works Chattogram, down by BDT2,500/mt. The Davis Index for domestic HMS 1&2 (80:20) settled at BDT26,500/mt inclusive of local taxes ex-yard Chattogram, unchanged from the prior week. The Davis Index for shipbreaking scrap equivalent to P&S settled at BDT27,500/ mt ex-yard, unchanged from the prior week.
The Davis Index for rebar from large steelmakers settled at BDT57,500/mt ex-producer, unchanged from the prior week.