Imported ferrous scrap trades in Bangladesh picked up in the week as steel mills resumed bookings after a silent last week. Finished long steel prices were flat despite strong for domestic steel.
The Davis Index for containerized shredded scrap settled at $288/mt cfr Chattogram on Friday, down by $14/mt cfr Chattogram from a week ago. Early this week, containerised shredded traded at $290-295/mt cfr Chattogram. Prices subsequently fell to $285/mt cfr Chattagram late in the week. Bids on Friday lowered further at $280/mt cfr Chattogram, with no trade reported yet.
Construction activity in Bangladesh usually picks up in the months of Jan-Feb. Mills continued to book imported scrap in the week on expectations of bullish finished steel demand in the near term.
Offers for US-origin HMS 1&2 (80:20) in bulk cargoes were at $270-275/mt cfr Chattogram, down from $290/mt cfr Chattagram levels in the prior week.
No major bulk cargo traded even though global ferrous scrap prices remained on a downtrend. The Davis Index for US origin containerized HMS 1&2 (80:20) fell by $16/mt to $264/mt cfr Chattogram.
Containerised South American HMS 1&2 (80:20) traded at $275-280/mt cfr Chattogram.
P&S scrap traded at $295-300/mt cfr Chattogram with the index for it settling at $297/mt cfr Chattagrom, down by $13/mt from the prior week.Busheling scrap traded at $303-305/mt cfr Chattogram. Traders refused to buy P&S over $280/mt cfr Chattogram.
Domestic ferrous scrap prices in Bangladesh mirrored the drop in imported ferrous scrap prices which fell by over $15/mt. Domestic ferrous prices decreased by BDT1,000-1,500/mt from a week ago. Ship breakers accepted lowered bids from steel mills amid an oversupply situation in global markets.
The Davis Index for domestic ship breaking HMS 1&2 (80:20) fell to BDT28,000/mt inclusive of local taxes ex-yard Chattogram, down BDT1,000/mt ($12/mt) from the prior week.
Large steel manufacturers held their offers flat at BDT61,000/mt but trades were at BDT59,500-60,500/mt this week. The Davis Index for large size rebar producers settled at BDT60,000/mt ex-works Chattogram, down BDT1,000/mt from the prior week.
Medium-sized steel producers held rebar offers flat at BDT54,000/mt inclusive of taxes ex-works producer from the prior week.