Weekly imported scrap prices in Bangladesh increased on global cues and tightened supply. Trades, however, remained limited for yet another week. Ramadan month began from April 23, a major holiday in Bangladesh marked with subdued business activities.
In the bulk markets, offers for imported scrap were reported at $285-290/mt cfr Chattogram, up by $15-20/mt from prior deal levels. Buying interest from major steel mills was low and bids were around $260-265/mt cfr Chattogram.
In the container market, the Davis Index for containerised shredded scrap settled at $286/mt cfr Chattogram on Friday, up by $16/mt from $270/mt in the prior week. Early this week, thin trades for containerised shredded were at $280-285/mt cfr Chattogram, though offers then increased to $290-300/mt cfr Chattogram.
The Davis Index for containerised P&S settled at $281/mt cfr Chattogram, up by $6/mt from the prior week. The Davis Index for US-origin containerised HMS 1&2 (80:20) rose to $265/mt cfr Chattogram, from $253/mt the prior week. US suppliers offered containerised HMS 1&2 (80:20) in 40 ft at $270/mt cfr Chattogram, but no trades were reported at those levels.
Indian sponge iron exporters have stopped production and paused their offers to Bangladesh and Nepal. Re rollers in Bangladesh remained silent. Domestic scrap generation through ship breaking activities has also dropped significantly. With the supply crunch persisting, domestic scrap prices also are expected to rise in the coming days.
The Davis Index for Australian HMS 1&2 (80:20) settled at $268/mt cfr Chattogram, up by $8/mt from the prior week. The Davis Index for Latin American HMS 1&2 (80:20) settled at $260/mt cfr Chattogram, up by $5/mt from the prior week. Brazilian traders raised their offers to $265-270/mt cfr Chattogram.
Bangladesh domestic market subdued
Major steelmakers in Bangladesh have stopped production activities amid rising COVID-19 cases in the country. Only a few infrastructure projects are operational at present.
The Davis Index for domestic HMS 1&2 (80:20) settled at BDT27,750/mt inclusive of local taxes ex-yard Chattogram, unchanged from the prior week. The Davis Index for shipbreaking scrap equivalent to P&S settled at BDT28,250/mt ex-yard, unchanged from the prior week. Shipbreaking is expected to resume by April 25 though issues with LC’s and limited cash flow could keep trades on hold.
The Davis Index for rebar from large steelmakers settled at BDT59,000/mt ex-producer, unchanged from the prior week.