Imported ferrous scrap prices in Bangladesh rose by $20/mt from the prior week fuelled by bullish global ferrous scrap prices. Mills continued to be in a ‘wait-and-see’ mode before purchasing scrap.
The Davis Index for containerised shredded scrap settled at $312/mt cfr Chattogram on Friday, up by $22/mt from a week ago. Early this week, containerised shredded traded at $305/mt cfr Chattogram. Late in the week, thin trades for containerised shredded scrap were reported at $310-312/mt cfr Chattogram.
Few suppliers were hoping to fetch $315-320/mt cfr Chattogram in step with a rise in India and Pakistan’s prices by $15-20/mt from the prior week. But buyers in Bangladesh stayed away from trades at those levels.
Raw material inventories with mills have started dipping, yet they stayed away from bulk bookings amid increased freight rates. Major shipping lines have hiked freight by around $250 for 20ft containers and by around $400 for 40ft containers effective Mar 1. Suppliers, however, expect buying activity to pick up in the coming days if inventories dry out.
Japanese H1: H2 scrap in small bulk cargoes was offered at $275/mt cfr Chattogram, up by $10-15/mt from the prior week offers.
The Davis Index for US West coast origin containerised HMS 1&2 (80:20) rose to $283/mt cfr Chattogram from $275/mt in the prior week. Australian HMS 1&2 (80:20) traded at $295/mt cfr Chattogram, an increase of $10/mt from the prior week.
South American containerised HMS 1&2 (80:20) traded in the range of $285-288/mt cfr Chattogram, up by $10/mt from the prior week.
P&S scrap traded at $308-310/mt cfr Chattogram with its Davis Index settling at $310/mt cfr Chattagrom, up by $12/mt from the prior week. The index for Busheling scrap was at $325/mt, up by $17/mt cfr Chattogram since sellers raised their offers. Offers were $5-10/mt higher than the bids.
In Bangladesh’s domestic ferrous scrap markets, prices rose by BDT500/mt from a week ago driven by imported ferrous scrap prices.
The Davis Index for domestic ship-breaking HMS 1&2 (80:20) was at BDT29,500/mt ($347/mt) inclusive of local taxes ex-yard Chattogram, up BDT1000/mt ($9/mt) from the prior week.
Domestic steel prices increased in the week on the back of steady demand. Large steel manufacturers in the country offered rebar at BDT61,500/mt, up from BDT61,000/mt from the prior week.