Imported scrap prices in Bangladesh stayed high on continued restocking by a few mills. However, domestic steel prices lost steam amid strong resistance by end-users including the builders’ association. On Tuesday, most mills delayed deals to gain clarity on the price direction. Container shortages have elevated freight rates and continue to slow trades in Bangladesh.
A possibility of receiving COVID vaccines developed in India led to positive market sentiment on Tuesday. Few Bangladeshi mills raised bids for imported scrap to bring back suppliers’ attention to the Bangladeshi market. Buyers also hiked bids for the scrapped vessels in the shipbreaking market.
The daily Davis Index for containerized shredded, Tuesday, settled at $510.38/mt cfr Chattogram up by $2.25/mt from Monday. Offers on Tuesday were at $510-515/mt cfr Chattogram. Brazilian shredded traded in limited quantity at $505-510/mt cfr Chattogram. However, inventories at supplier yards is low as scrap generation is hit due to a resurgence of the pandemic.
A trader sold UK-origin HMS 1&2 (80:20) at $485-490/mt cfr Chattogram. Mills bids for HMS 1&2 80:20 at $475-480/mt cfr Chattogram on Tuesday. The Davis Index for containerized HMS 1&2 (80:20) of the US-origin and Latin America-origin settled at $485.5/mt and $483/mt cfr Chattogram, respectively, rising $1.21/mt and $1/mt, respectively, from Friday. Offers for HMS #1 from Chile and Australia heard at $490-495/mt cfr Chattogram.
In the bulk market, the resumption of ferrous scrap imports into China are likely to keep prices upbeat. Offers of HMS 1&2 (80:20) in bulk heard at $510-515/mt cfr Chattogram with Turkish buyers likely to accept $485/mt cfr Turkey.
Domestic steel under pressure
Domestic steel prices in Bangladesh on Tuesday lowered by BDT1,000-1,500/mt (), which limited trades in the domestic steel market. Ship scrap equivalent to P&S traded at BDT42,000-42,500/mt ex-works down BDT1,000-1,500/mt from Friday. Domestic HMS 1&2 (80:20) offered at BDT41,000-41,500/mt ex-yards Chattogram while billet traded at BDT50,500-51,000/mt ex-works Chattogram. Mills are offering discounts to encourage trades.
On Tuesday, large steelmakers offered rebar at BDT65,000-67,000/mt ex-works. Medium-scale mills in Dhaka held their offers for rebar at BDT60,000-61,000/mt ex-works. Rebar prices by medium mills have dipped below BDT60,000/mt ex-works which could hurt ferrous scrap buying this week, said a Dhaka-based steelmaker.
Shiprecyclers witnessed strong demand for ship scrap but very limited scrapped vessels are being offered from Europe amid fresh COVID-19 lockdowns.