Imported ferrous scrap trades in Bangladesh were subdued as mills awaited clarity on global price direction.
The Davis Index for containerized shredded scrap settled at $302/mt cfr Chattogram on Friday, down from $304/mt cfr Chattogram a week ago. Trades for containerised Shredded concluded at $300-305/mt cfr Chattogram.
Steel mills held enough ferrous scrap inventories and stayed away from trades as they seek clarity on the global price direction. Global ferrous prices fell by over $10/mt this week, but buyers awaited for prices to decline further before booking cargoes. Trades are likely to pick up if the prices fall by another $5-10/mt next week.
US-origin HMS 1&2 (80:20) in bulk cargoes was offered at $290/mt cfr Chattogram, with no takers at those price levels.
The Davis Index for Australia and US origin containerized HMS 1&2 (80:20) fell by $9/mt and settled at $285/mt cfr Chattogram.
Containerised South American HMS 1&2 (80:20) traded at $280-282/mt cfr Chattogram matching the fallen bids by buyers.
P&S from Brazil traded at $305-310/mt cfr Chattogram with Busheling scrap trades at $315/mt cfr Chattogram.
Trades thinned in the subdued markets and impacted domestic ferrous scrap prices which fell by BDT1,000/mt in Bangladesh.
The Davis Index for domestic shipbreaking HMS 1&2 (80:20) fell to BDT29,000/mt inclusive of local taxes ex-yard Chattogram, down BDT1,000/mt ($12/mt) from the prior week. The weekly index for billet settled at BDT45,000/mt ex-works Dhaka, unchanged on weakened demand in the market.
Rebar offers by large sized steel mills were at BDT61,000-62,000/mt ex-works Chattogram, unchanged from the prior week. Offers by medium-sized steel producers were at BDT54,000-54,500/mt inclusive of taxes ex-works producer, also unchanged from the prior week.
Japan’s Tokyo Steel announced second price cut in a week’s period. Prices for domestic ferrous scrap lowered by JPY500/mt ($5/mt) at all five works, effective Jan 31.
Earlier, the company lowered its ferrous scrap prices by JPY500/mt effective Jan 29. After the latest price revision, Tokyo steel will pay JPY23,500/mt for Japanese #2 HMS scrap delivered to its Tahara plant in the central region and Utsunomiya plant in the Kanto region. The purchase prices for #2 HMS del Okayama plant is at JPY22,000/mt and at JPY21,000/mt del Takamatsu steel center .