Bangladeshi steel mills left with no option other than to procure imported scrap at higher prices amid depleting inventories and tightening domestic scrap supply. A shortage of containers and high freight costs resulted in high landing costs. Higher offers have limited deals in Bangladesh, but rising inquiries attracted renewed attention from traders.
The daily Davis Index for containerized shredded, Tuesday, settled at $465.36/mt cfr Chattogram, up by $15.36/mt from Monday. Trades for shredded reported at $460/mt cfr Chattogram from the US on Monday. Offers for Bulk offers rose sharply in Turkey, while bids from Bangladesh did not match offers. Containerized shredded offers from the UK and US yards are scarce with a few offering above $470-480/mt cfr Chattogram on Tuesday.
HMS scrap trades pick a pace
The Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $450/mt cfr Chattogram, up by $13.75/mt from Monday. Deals for UK-origin reported at $445-450/mt cfr Chattogram with indications of a further rise in the coming days. Offers from Australia and the US at $455-465/mt cfr Chattogram differing by quality.
For Asian buyers, bulk offers have turned unrealistic with a few suppliers quoting $490-500/mt cfr Chattogram for US-origin mixed HMS 1&2 (80:20) and shredded.
The daily index for Latin America-origin HMS 1&2 (80:20) surged $20/mt to settle at $448/mt cfr Chattogram from Monday. Offers for Latin American mix HMS #1 and P&S rose to $450-465/mt cfr Chattogram on Tuesday, while a few containers were booked at $455-460/mt cfr Chattogram from Australia, New Zealand and Chile in the last two days.
Ship scrap equivalent to P&S remained firm after rebounding by BDT1,500-2,000/mt on Monday. The grade traded at BDT39,500-40,000/mt ex-works stable from Monday. Domestic HMS 1&2 (80:20) offers at BDT38,000-38,500/mt ex-yards Chattogram.
Domestic billet trades heard at BDT47,500-48,500/mt ex-works Chattogram. Large-scale rebar makers held offers to pass higher input costs. Prices for rebar were at BDT62,500-65,000/mt ex-works. Demand, however, was slow. Small-scale rebar makers offered at BDT53,000-54,000/mt ex-works.