Steel mills in Bangladesh are reluctant to book imported ferrous scrap in containers this week. After buying bulk and with many booked tonnages arriving at the port, appetite for ferrous scrap in containers turned soft. Mixed sentiments in major markets China and Turkey caused buyers to step back and wait for more clarity.
The daily Davis Index for containerized shredded, Thursday, settled unchanged at $535.36/mt cfr Chattogram, up $2.86/mt. Optimism around strong domestic demand in June in supplier countries kept offers firm. On Thursday, offers rose on the resumption of trades from India and Pakistan.
In Bangladesh, mills remained largely away from containerised deals for almost all ferrous grades. Offers for shredded at $535-545/mt cfr Chattogram while P&S and #1 busheling from the UK offered at $550/mt and $570/mt cfr Chattogram but buyers were not interested. Bids for ferrous scrap stay considerably lower amid soft demand outlook ahead of monsoon and extended COVID-19 lockdown.
The daily index for HMS 1&2 (80:20) from Latin America climbed up $2/mt to $500/mt cfr Chattogram driven by increased offers. Mills showed interest for the Brazilian and UK origin HMS 1&2 (80:20), but eyed deals at $490-495/mt cfr Chattogram. Trades for containerised HMS above these levels are very difficult given declining domestic fundamentals, claimed traders.
Mills’ willingness to pay $10/mt more for the US, Australia and New Zealand origin HMS depending on quality and transit period, pushed offers up. The index for US-origin containerized HMS 1&2 (80:20) rose to $512.5/mt, up by $2.5/mt.
For shipbreakers, offers for scrapped vessels are heading towards $600/ldt cnf Chattogram, which are largely unacceptable for buyers. Slow ship demolition rates in the past two months have tightened domestic scrap supply. Billet prices dropped to BDT60,500/mt ex-works and rebar from Dhaka-based medium-scale steelmakers sold at BDT67,000/mt ex-works, down BDT1,500/mt ($18/mt) from a week prior. Very few imported ferrous scrap trades in containers heard.