Weekly imported ferrous scrap prices in Bangladesh rose by $10/mt fuelled by bullish global ferrous scrap prices. With their inventories dipping, mills were expected to return to the bulk markets this week. But buying activity did not pick up as mills shied away from booking scrap at increased prices.
The weekly Davis Index for containerized shredded scrap settled at $322/mt cfr Chattogram on Friday, up by $10/mt. Early in the week, thin trades for containerized shredded were at $310-315/mt cfr Chattogram. Prices subsequently increased to $320-323/mt cfr Chattogram late in the week.
Mills had booked earlier booked bulk ferrous scrap cargoes in late December as prices then were lower by $50-60/mt than the current levels. Buyers now wait for prices to decline before they resume bulk buying activity.
The Davis Index for containerized P&S scrap settled at $325/mt cfr Chattogram on Friday, up by $15/mt from a week ago. P&S traded at $320-325/mt cfr Chattogram. The Davis Index for US origin containerized HMS 1&2 (80:20) rose to $295/mt cfr Chattogram from $283/mt in the prior week.
Australian HMS 1&2 (80:20) traded at $300-305/mt cfr Chattogram, up by $10/mt from the prior week.
The weekly Davis index for Latin American HMS 1&2 (80:20) settled at $295/mt cfr Chattogram, up by $7/mt, with thin trades reported at those levels. Traders refused to accept bids at $285/mt cfr Chattogram early this week.
Japanese H1:H2 scrap in small bulk cargoes was offered at $280-285/mt cfr Chattogram, up by $10/mt from the prior week, with no takers at those levels.
In the domestic ferrous scrap market, prices rose in line with increased imported scrap prices. Domestic ferrous scrap and billet prices, both increased by BDT1,000/mt from a week ago.
The Davis Index for domestic ship breaking HMS 1&2 (80:20) rose to BDT30,500/mt inclusive of local taxes ex-yard Chattogram, up BDT1000/mt ($9/mt) from the prior week.
Major steelmakers look to raise prices for rebar to cover increased input costs. They are likely to announce a price hike by BDT500-1000/mt early next week. The weekly Davis Index for large steelmakers rebar settled unchanged at BDT61,500/mt ex producer on Friday.