Steel mills in Bangladesh bought imported scrap in thin volumes. In the Indian subcontinent, sellers continued to focus on Bangladesh which has emerged as the highest-paying market for the time being. Falling Chinese prices have dampened sentiment in the Asian steel market. But global ferrous scrap prices are likely to stay firm amid tight supply and resumption in Turkish bulk purchases, believe traders. The drop in Chinese steel prices could thus have a limited impact on scrap prices.
The Bangladeshi government has extended its national lockdown until May 30 which has impacted trading. Earlier, sellers and traders were hopeful of demand picking up on Monday as restrictions were to be eased on May 23. Laborers who had left for the Eid holidays are still unwilling to return amid increasing domestic uncertainty.
The daily Davis Index for containerized shredded, Monday, settled at $540.71/mt cfr Chattogram, down $1.79/mt. Mills booked containerized shredded from Australia at $540-542/mt cfr Chattogram. Shredded of UK-origin traded at $545/mt cfr Chattogram with some offers even at $550/mt cfr Chattogram.
In the bulk market, most yards were interested in catering to the demand in Turkey. Yards on the US East Coast raised offers by $10-15/mt, but those on the West Coast yards stayed away from offering material.
The daily index for HMS 1&2 (80:20) from Latin America settled at $503/mt cfr Chattogram, down $2/mt. Late last week, trades for the grade were reported at $500-503/mt cfr Chattogram. Offers for #1 HMS from Latin American yards were below $508-510/mt cfr Chattogram amid softening demand.
The index for US-origin containerized HMS 1&2 (80:20) was unchanged at $515/mt. While the indexes for the grade of UK and Australia-origin fell by $2/mt to $508/mt and $513/mt cfr Chattogram, respectively. A major steelmaker in Chattogram was heard to have bought containers of #1 HMS from the UK at $518/mt and HMS 1&2 (80:20) at $508/mt cfr Chattogram.
In the domestic market, offers for ship scrap equivalent to P&S were unchanged at BDT48,000/mt ($566/mt) ex-yards.
Offers for billet were at BDT61,500-62,000/mt ex-works, but the market was largely silent. Offers for 16mm ship plates were at BDT55,000-55,500/mt ex-yards.
Large-scale steelmakers kept rebar offers above BDT73,000-74,000/mt ($861-873/mt) ex-works, raising it by BDT500-1000/mt. End-users in Bangladesh are unsure of booking at present price levels because the arrival of monsoon could pressure steel prices.
($1=BDT84.75)