Imported ferrous scrap prices in Bangladesh jumped this week amid stable demand. The domestic market showed signs of recovery amid stronger indications from major steel-consuming sectors. Mills raised finished steel prices to offset high input costs. With the floods in most steel-producing regions receding, even small-scale secondary steelmakers have started booking containerized scrap and ramping up their productions. A shortage of containers, mainly due to a mismatch between imports and exports, has also increased the landed cost for many scrap importers.
In the bulk market, offers for US West Coast-origin HMS 1&2 (80:20) were around $335/mt cfr Chattogram with limited buying interest. In the latter part of the week, buyer shied away from trades as bulk freight rates have also increased. Japanese suppliers kept #2 HMS offers at JPY28,500-29,000/mt fob, up by JPY1,000/mt from the prior week. In the small bulk market, offers were at $325/mt cfr Chattogram, a $10-15/mt rise from the prior week.
The Davis Index for containerized shredded, Friday, settled at $341.79/mt cfr Chattogram, up by $10.79/mt from the prior week. Buyers for containers of shredded from Europe, Australia, and New Zealand were at $335-340/mt cfr Chattogram. On Friday, offers for containerized shredded from the UK were heard at $345/mt cfr Chattogram against bids of $340/mt cfr Chattogram. While a few yards are hoping to raise it above $350/mt cfr Chattogram next week.
The weekly Davis Index for containerized US-origin HMS 1&2 (80:20) Friday settled at $325/mt cfr Chattogram up by $5/mt from the prior week. No major deals reported as the delivery periods are very high. The index for UK/EU-origin HMS 1&2 (80:20) rose by $6/mt to $324/mt cfr Chattogram from the prior week. A few trades for HMS 1&2 (90:10) from the UK were at $325-330/mt cfr Chattogram.
Australian suppliers preferred to sell HMS containers to Bangladesh and Indonesia, where buyers accepted their prices and withdrew offers for the Indian market. Trades for the HMS 1&2 (80:20) heard at $320-322/mt cfr Chattogram in limited volumes.
The daily index for Latin America-origin HMS 1&2 (80:20) settled at $319/mt cfr Chattogram, up by $5/mt. Few offers were active from the region as most Brazilian traders sought $318-320/mt cfr Chattogram due to firm prices in their domestic market. Trades for Latin American HMS #1 were at $323-325/mt cfr Chattogram with prices up by $5/mt from the prior week.
Brazilian P&S scrap containers were offered at $340/mt cfr Chattogram in limited quantities. P&S from the UK and Latin America traded at $340-345/mt cfr Chattogram. The weekly Davis Index for busheling settled at $358/mt cfr Chattogram, up by $6/mt with no major deals reported amid a supply crunch.
Finished, semi-finished steel
The weekly Davis Index for domestic billet Friday settled at BDT41,750/mt ($491.75/mt) ex-works Chattogram up by BDT1,125/mt, with trades at the index price. Major steelmakers in Chattogram sold billets at BDT42,000-42,500/mt ex-works Chattogram.
The weekly Davis Index for rebar from medium-scale steelmakers settled at BDT50,500/mt ex-works, up by BDT750/mt, inclusive of VAT. Large steel producers like BSRM and AKS are offering rebar at BDT56,000-57,000/mt ex-works, respectively, with the index rising BDT750/mt to BDT56,500/mt ex-works. Dhaka-based finished steel producers sold rebars at BDT50,000-50,250/mt ex-works, up by BDT500-750/mt from the prior week. A few mills are offering rebar at BDT52,000-53,000/mt ex-works Chattogram amid high input costs and a tight supply of scrap.
Domestic and ship scrap
Ship scrap prices increased this week in sync with a rise in domestic scrap prices and low inventory at yards as fewer ships arrived for beaching during the last few weeks.
Domestic shipbreaking scrap equivalent to P&S traded at BDT32,500-33,000/mt ex-yard Chattogram with the index settling at BDT32,750/mt ex-yards, up BDT1250/mt from the prior Friday. HMS 1&2 (80:20) was priced at BDT30,000-30,500/mt ex-yard Chattogram. The weekly Davis Index for the grade settled at BDT30,214/mt ex-yards on Friday.
Offers for scrapped vessel imports were stable in the range of $350-360/ldt, with indications of increased arrivals till the end of the year, if supplies remain stable.