Bangladeshi imported ferrous scrap offers exhibited stability on Thursday, as a few buyers resumed negotiations after a hiatus. An extended national lockdown and Eid holidays last month had impacted buying interest.
Mills, on the other hand, were hopeful for a drop in prices as bids softened in India and Pakistan. Processors expect production to reach full capacity as laborers return to work and monsoon abates in the coming weeks.
Bangladesh’s central government has extended the lockdown by five days till Aug 10 to control the spread of COVID-19.
The daily Davis Index for containerized shredded settled at $548/mt cfr Chattogram on Thursday, down by $0.75/mt. Most offers for EU/UK origin shredded were at $550/mt cfr Chattogram while a few Australia origin offers were slightly lower. Most large mills prefer bulk options on high freight rates and tight container supply.
The daily index for US-origin containerized HMS 1&2 (80:20) was unchanged at $520/mt cfr Chattogram as the global supply of heavy melt scrap eased, and importers in Bangladesh shied away from bookings. The daily index for UK-origin HMS 1&2 (80:20) was stable at $512/mt cfr Chattogram, while the index for Australia-origin HMS 1&2 (80:20) flat at $520/mt cfr Chattogram.
Offers for #1 HMS from Australia and the UAE were at $530-535/mt cfr Chattogram with no buyers interested. Offers for higher grades like #1 busheling and P&S in containers were at $575/mt and $555/mt cfr Chattogram on Thursday.
The daily Davis Index for HMS 1&2 (80:20) from Latin America remained unchanged at $507/mt cfr Chattogram. Bids were between $500-505/mt cfr Chattogram as global prices softened. Traders have been struggling to find empty containers for exports.
Inventories of both ferrous scrap and finished steel continued to pile up following subdued demand and prices of steel. Rebar and billet prices remained unchanged in a passive market. The domestic steel market has not been regularized yet and could take at least until mid-August to resume actively.