Bangladeshi mills booked limited volumes of containerized scrap as most were inclined towards bulk negotiations. Elevated freight rates and a global shortage of containers have resulted in high landed costs for containerized scrap. Offers remained firm with most traders unable to procure at lower prices from the sourcing countries.
Despite a drop in the Turkish bulk prices, sellers resisted bid levels in Asia. The Davis Index for containerized shredded settled at $556.25/mt cfr Chattogram on Monday, up by $3.21/mt from Friday. Very few traders, however, lowered offers by $3-5/mt as seasonal slowdown affected sentiment. Bids on Monday dropped to $550/mt cfr Chattogram.
In the bulk market, a couple of suppliers from the US West Coast offered material at prices above $550-555/mt cfr Chattogram for mixed cargoes of HMS 1&2 (80:20) and shredded against intertest of around $540/mt cfr Chattogram.
Extended semi-conductor and chip shortages have forced automakers to halt production, keeping the supply of prime grades under pressure.
Japanese sellers were not interested to sell in Bangladesh. Very few bulk offers were at prices above $520-525/mt cfr Chattogram from Japan.
The daily Davis Index for HMS 1&2 (80:20) from Latin America, Monday, rose $2/mt to $523/mt cfr Chattogram. Deals for HMS 1&2 (80:20) concluded at $522-525/mt cfr Chattogram. Offers for #1 HMS were unchanged at $525-530/mt cfr Chattogram.
On Monday, the index for US-origin containerized HMS 1&2 (80:20) increased to $534.44/mt cfr, gaining $2.51/mt from Friday. A gradual recovery in HMS trades pushed the indexes for HMS 1&2 (80:20) of UK-origin and Australia-origin to $525/mt and $532/mt cfr Chattogram, both up by $2/mt. Some mills raised bids to $525-530/mt cfr for HMS scrap to refill depleted inventories.
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, down by BDT500/mt. 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. Offers for shipbreaking plates were unchanged on Monday at BDT53,500-54,000/mt ex yards.
Amid continuous rainfall, demand for steel in the construction sector was weak. Prices for rebar from large-scale mills were at BDT71,000-71,500/mt, down BDT500/mt ex-works.