A Bangladeshi steel mill bought a bulk cargo late last week from a US West Coast-based supplier as prices showed a marginal downtrend. However, in the containers market, most buyers were reluctant amid weak finished steel demand. Buyers decided to hold their purchases expecting marginal downward correction amid easing supplies, internationally.
Mixed sentiments in major markets like China and Turkey caused many participants to stay in wait and watch mode.
In the bulk market, a mill bought 32,000mt full shredded cargo at $525/mt cfr Chattogram. Compared to the prior two mixed scrap bulk deals concluded late May in the range of $535-540/mt cfr Chattogram, the prices from the US west coast have already dropped over $10-15/mt. Mills expect prices to drop further as finished steel demand weakens.
Sellers from the US East Coast are yet to lower prices as they bank on hopes that Turkish mills will pay higher once bulk trade resumes.
Reduction in advance tax (AT) to nil from 4pc according to Bangladesh’s national budget for FY2021-22 announced last week, could support ferrous scrap imports. Small mills that cut productions amid margin squeeze could find this policy encouraging.
The daily Davis Index for containerized shredded, Monday, remained unchanged at $535/mt cfr Chattogram. The disparity between offers and bids led to very minimal to no deals for shredded. A few sellers held offers unchanged in the range of $545-455/mt cfr Chattogram on high container freight.
Offers for containerized shredded from UK/EU-yards firm at $525-535/mt cfr Chattogram with limited buying. Bids lagged by around $5-10/mt as steel demand remains subdued in the country.
The daily Davis Index for HMS 1 &2 (80:20) from Latin America, Monday, slipped by $1/mt to $497/mt cfr Chattogram. Offers for #1 HMS remained in the Indian market above $500-510/mt cfr Chattogram. On Monday, the index for US-origin containerized HMS 1&2 (80:20) fell by $1/mt to $509/mt in absence of deals. while the indexes for UK-origin is at $502/mt and Australia-origin at $507/mt cfr Chattogram, respectively.
In the domestic market, ship scrap equivalent to P&S lowered to BDT47,500-48,000/mt ex-yards, down BDT500/mt from Friday. Domestic HMS 1&2 (80:20) sold below BDT46,000/mt ex-yards Chattogram.
Finished steel buyers showed limited interest in buying in large volumes. Billet prices at BDT60,000-60,500/mt ex-works. For shipbreakers scrapped vessel offers rose further on high plate prices.
Offers for rebar from large-scale mills unchanged at BDT72,500/mt ex-works. Unable to attract end consumers at high offers, mills could offer discounts in the coming days.