Imported containerized scrap offers in Bangladesh remained elevated on Wednesday on increased US and Japanese bulk offers. Trading slowed with only a few mills showing willingness to pay current price levels.
The Davis Index for containerized shredded, Wednesday, settled at $477.5/mt cfr Chattogram, up $0.5/mt from Tuesday on firm offers. Asking prices from yards and traders were at $485-490/mt cfr Chattogram. Buyers slowed bookings amid uncertainty around steel demand sustaining in the long run. Uncertainty in the international iron ore prices and cash flow concerns faced by small and medium-scale also impacted trading. Towards the month end, most mills focus on paying their utility bills resulting in low demand.
Offers in the bulk market jumped further $10-15/mt on Wednesday on global cues. Offers reported in the range of $470-480/mt cfr Chattogram from the US and European bulk suppliers with no buyers in the market.
Chinese domestic billet prices remained flat at CNY4,230/mt ($655/mt) ex-Tangshan including VAT on Wednesday. Mixed future prices and iron ore prices that lost steam on Tuesday, weighed on the price rally. Chinese mills opted for billet imports over ferrous scrap purchases keeping Southeast Asian billet prices flat on Wednesday.
In a recent deal in containers, UK origin mix of #1 HMS and P&S was reported at $455-460/mt cfr Chattogram.
For mills in Chattogram, HMS scrap from the Latin America and Australia remained the preferred options. The index for HMS 1&2 (80:20) from Latin America settled at $438/mt cfr Chattogram, up by $1/mt. Traders bought HMS 1&2 (90:10) in containers in the range of $445-450/mt cfr Chattogram on Wednesday, with mills concluding small tonnages in the same range.
The daily Davis Index for US-origin containerized HMS 1&2 (80:20) settled at $445/mt cfr Chattogram, up by $1.79/mt. Offers were high amid strong outlook for the March domestic market.
Domestic steel prices stay firm
Offers of ship scrap equivalent to P&S were in the range BDT42,000-42,500/mt ($495-498/mt) ex-yards. Buyers opted for ship scrap on faster delivery time. Domestic billet was offered at BDT53,500-54,000/mt ex-works Chattogram, widening the range from Tuesday when it was BDT53,500/mt ex-works.
Large steelmakers in Chattogram offered rebar at increased prices amid high input costs. Asking rates for rebar were unchanged at BDT66,500-67,500/mt ex-works. Rebar traded albeit in small volumes from medium-scale mills in Dhaka at BDT62,000-63,000/mt ex-works.