Imported ferrous scrap prices in Bangladesh inched up by $3-5/mt from the prior week driven by rising global ferrous scrap prices. With this uptick in global and domestic scrap prices, suppliers refused to meet lower bids and limited trades were reported for containerised scrap. Mills adopted a ‘wait and see’ approach waiting for prices to decline as they held enough inventories in hand
The Davis Index for containerized shredded scrap settled at $290/mt cfr Chattogram on Friday, up by $2/mt from a week ago. Earlier this week, containerised shredded traded at $285-290/mt cfr Chattogram. Late in the week imported scrap prices in Pakistan and India rose $5-7/mt from the prior week, pushing offers up in Bangladesh. Shredded offers were at around $295/mt cfr Chattogram, up from the index at$285/mt cfr in the prior week.
Traders informed China’s coronavirus related lockdown caused a disruption in containerized scrap business. Major shipping lines face shortage of empty containers to transport and are likely to increase freight rates in coming days. This could drive imported ferrous scrap prices up.
Japanese H1:H2 scrap in small bulk cargoes traded at $255-260/mt cfr Chattogram, down by $10/mt from the prior week offers.
The Davis Index for US West Coast origin containerized HMS 1&2 (80:20) rose to $270/mt cfr Chattogram from $265/mt in the prior week. Australian HMS 1&2 (80:20) was offered at $285/mt cfr Chattogram, with no takers.
South American containerised HMS 1&2 (80:20) traded flat in the range of $275-280/mt cfr Chattogram from the prior week.
Indian sponge iron was offered at $290-295/mt cfr Chattogram. These prices were equivalent to $285-290/mt cpt beanpole and in line with imported scrap prices.Few Induction furnaces procure sponge from India to blend it with imported scrap.
P&S scrap traded at $295-300/mt cfr Chattogram with its Davis Index settling at $298/mt cfr Chattagrom, up $1/mt from the prior week. Busheling scrap traded at $305-310/mt cfr Chattogram.
Domestic ferrous scrap prices in Bangladesh mirrored rise in imported ferrous scrap prices. Domestic ferrous prices increased by BDT500-1,000/mt from a week ago.
The Davis Index for domestic ship breaking HMS 1&2 (80:20) rose to BDT28,500/mt inclusive of local taxes ex-yard Chattogram, up BDT500/mt ($5.88/mt) from the prior week.
Domestic steel demand, however, remained subdued with rebar offers flat for the four weeks.
Large steel manufacturers offered rebar flat at BDT61,000/mt and trades were at BDT60,500/mt this week.