Bangladesh was more active in the seaborne ferrous scrap market compared to other subcontinental buyers. Weak global cues have pulled down prices marginally from last week. Deals for containerized scrap could remain limited in Bangladesh as most mills were interested in negotiating for bulk.
Elevated freight rates and a global shortage of containers have resulted in high landed costs for containerized scrap.
Following softening Turkish bulk prices in absence of major deals, buyers resisted high offer levels in Asia. The Davis Index for containerized shredded settled at $552.5/mt cfr Chattogram on Tuesday, down by $3.75/mt from Monday. Very few traders, however, lowered offers by $3-5/mt as seasonal slowdown affected sentiment. Bids on Monday dropped below $550/mt cfr Chattogram for shredded and $560/mt for P&S scrap in containers from the UK and Europe.
Extended semi-conductor and chip shortages have forced automakers to halt production, keeping the supply of prime grades under pressure. The widening gap between HMS and other higher grades is likely to keep prices firm for industrial scrap, but HMS could come under pressure. There could be a limited downtrend in global steel prices, which may rebound next month again, believe importers.
The daily Davis Index for HMS 1&2 (80:20) from Latin America, Tuesday, dropped by $3/mt to $520/mt cfr Chattogram. Deals for HMS 1&2 (80:20) concluded at $518-520/mt cfr Chattogram. Offers for #1 HMS were at $525-527/mt cfr Chattogram.
On Tuesday, the daily index for US-origin containerized HMS 1&2 (80:20) decreased to $532.5/mt cfr Chattogram, by $1.94/mt. A deal of 3,000mt containerized #1 HMS was reported at $530/mt cfr Chattogram as softening sentiments weighed bids.
Bids for HMS 1&2 (80:20) were below $530/mt cfr Chattogram on Tuesday. Sellers, however, kept offers above $535/mt cfr Chattogram. The daily indexes for HMS 1&2 (80:20) of UK-origin and Australia-origin were at $523/mt and $530/mt cfr Chattogram, both down by $2/mt.
In the domestic market, the availability of scrap was tight. Mills with ship-breaking yards opted for scrapped vessel purchases.
Ship scrap equivalent to P&S was offered at BDT48,500-49,000/mt ex-yards on limited supply. Several small-scale mills were busy closing their books as the fiscal year ends soon.
Local billet was offered at BDT49,000-49,500/mt ex-works. For shipbreakers, offers for scrapped vessels were at $550-560/mt cnf, depending on the type. But yards decided to wait for prices to cool off amid tepid steel and scrap demand and seasonal slowdown.