Containerized imported ferrous scrap trades in Bangladesh were limited as only a few sellers were willing to match the present bid levels. Domestic steel demand is expected to remain strong. Mills are expected to be back in the ferrous scrap market next week for March-April shipments. Demand could pick up aided by positive sentiment as Turkey has stepped into the market for bulk trades. Still, some mills could stay away from purchases till the Chinese New Year holidays end.
The daily Davis Index for containerized shredded, Friday, settled at $414.29/mt cfr Chattogram, up by $0.04/mt from Thursday, but down by $20.71/mt from Jan 29. Prices have declined by $95/mt from Jan 12, when prices were at their peak.
Bids for shredded were at $405-415/mt cfr Chattogram. Mills preferred HMS due to its easy availability and the resulting large number of offers.
The daily Davis Index for containerized HMS 1&2 (80:20) from the US settled at $397.5/mt cfr Chattogram, up by $1.43/mt; while the index for the grade from Latin America settled unchanged at $394/mt cfr Chattogram. Only a few offers for HMS #1 from Chile were at $395-405/mt cfr Chattogram on Friday as suppliers largely stayed away from offering in the seaborne market amid strong domestic realization. Australia-origin HMS 1&2 (80:20) was offered at $380-390/mt, down by $10/mt. UK yards were away from negotiations with the country under lockdown due to rising COVID-19 infections.
Indian mills offered sponge iron at $340-350/mt cpt Benapole or $350-360/mt cfr Chattogram, down by $5/mt amid weak domestic fundamentals. In the last two days, Chinese iron ore prices have gained $6-8/mt although historically there is a lull ahead of Chinese holidays. Prices have turned up since Brazilian miner Vale expects a shortage in the market.
Trades for containerized P&S and #1 busheling were sporadic. The index for P&S settled at $424/mt, down by $19/mt; while that for #1 busheling was at $445/mt cfr Chattogram, down by $21/mt.
In the bulk market, offers were very limited, while mills took a wait-and-watch before booking more material. Bids for Japanese #2 HMS in small bulk were at $385-390/mt cfr Chattogram. US-origin HMS 1&2 (80:20) offers were at $420-425/mt cfr Chattogram from the East Coast and $410/mt cfr Chattogram from the West Coast.
Domestic scrap down, infrastructure demand revives
The weekly index for ship scrap equivalent to P&S fell by BDT500/mt ($7/mt) to BDT39,750/mt ($469/mt) ex-works. The index for domestic HMS 1&2 (80:20) was down BDT500/mt to BDT38,125/mt ex-yards Chattogram. Some yards offered domestic ship scrap at BDT37,000-37,500/mt ($437-442/mt) ex-works. Prices of ship plates were rangebound over the week at BDT44,000-44,500/mt ex-yards.
Prices were rangebound in the market. Domestic billet traded at BDT49,000/mt ex-works Chattogram, with its index down by BDT500/mt. The index for large steelmakers’ rebar, Friday, turned up by BDT250/mt to BDT64,750/mt ex-works. Due to squeezed margins, mills lowered discounts to BDT500-1,000/mt from BDT1,500-2000/mt last week.
Medium-scale mills in Dhaka sold rebar at BDT58,000-58,500/mt ex-works. Small-scale mills offered rebar below BDT53,500-54,000/mt ex-works. For shipbreakers, offers for vessels were at $440-460/ldt cnf Chattogram, unchanged from the prior week.