Bookings for containerized ferrous scrap increased in Bangladesh as mills looked to restock materials before Ramadan. Demand and prices for shipbreaking plates continued to rise, boosting sentiment for ferrous scrap imports. But steelmakers are still struggling with high freight charges, port congestion, and a bleak domestic demand outlook.
The daily Davis Index for containerized shredded, Thursday, settled at $453.93/mt cfr Chattogram, up by $2.5/mt. A large-scale steel mill in Chattogram booked 6,000mt of the UK-origin containerized shredded at $454-455/mt cfr Chattogram. A few Dhaka-based mills booked limited tonnages of shredded in the range of $450-455/mt cfr Chattogram, up from $445-450/mt cfr Chattogram early this week. Deal for a mix of P&S and #1 HMS of Poland-origin concluded at $445-450/mt cfr Chattorgam.
Following softening bulk offers, Japanese traders lowered asking prices for small bulk by $5-10/mt from last Monday. The arrival of monsoons in May-end could dent bulk buying interest further.
The daily index for HMS 1&2 (80:20) from Latin America settled at $436/mt cfr Chattogram, up by $2/mt. Bids were in the range of $425-430/mt cfr against sellers’ expectations of $445-450/mt cfr Chattogram.
It has been over 48 hours since a large vessel has blocked the Suez Canal. The area is cardinal for at least 10pc of global trade routes. But its impact on steel prices could be limited, believe experts. Shipping lines could face increased costs due to excess fuel consumption and delays in deliveries.
Shipbreaking plate prices up BDT2,000
Shipbreaking plate prices increased by BDT2,000/mt to BDT52,500/mt ex-yards. Prices continued to rise amid healthy demand for HRC. Prices for shipbreaking melting scrap equivalent to P&S increased by BDT500/mt from a day ago to BDT43,500-44,000/mt ex-yards, while domestic HMS 1&2 (80:20) was unchanged at BDT42,000-42,500/mt ex-yard Chattogram.
Real estate contractors and other end-users looked to purchase rebar from semi-automatic mills because of its cost competitiveness.
Large steelmakers kept their asking prices for rebar between BDT67,500-68,500/mt ex-works. Large mills canceled discounts amid recovering demand and costlier imported ferrous scrap. Most buyers preferred rebar from medium-scale mills in Dhaka at BDT63,500-64,500/mt ex-works on Thursday.
Billet offers increased BDT55,500-56,500/mt ex-works Chattogram with rising demand in construction projects. In Southeast Asia, billets were offered at $590-600/mt cfr. Market participants believe prices could remain firm for the next two weeks and then lose over BDT5,000/mt in April.
($1=BDT84.72)