Imported ferrous scrap offers from the US and Japanese yards jumped sharply on Wednesday. Bangladeshi mills were carefully watching the domestic market to raise steel prices to offset the increase in input cost. Secondary steelmakers have also resumed trades in containers as monsoon and floodwaters have receded in most major steel-producing regions.
The daily Davis Index for containerized shredded, Wednesday, settled at $338.86/mt cfr Chattogram up by $3.55/mt from Tuesday. European and US yards offered shredded at $340-345/mt cfr Chattogram amid tight supply. Dhaka-based mills had placed bids for the containers of Australian origin shredded at $330-335/mt cfr Chattogram on Wednesday but few suppliers are willing to match these levels. P&S from the UK and Latin America traded at $340-345/mt cfr Chattogram. UK-based suppliers refused to offer shredded below $345/mt cfr Chattogram. Offers could cross $350/mt cfr Chattogram soon.
Japanese suppliers are offering #2 HMS at JPY28,500/mt fob basis, up JPY1,000/mt from the prior week. In small bulks, offers were at $315-320/mt cfr Chattogram on Wednesday witnessing a $10/mt jump from the prior week.
The index for containerized US-origin HMS 1&2 (80:20), Wednesday, settled at $324.38/mt cfr Chattogram, up $2.17/mt from Tuesday. Trades for the UK and US-origin HMS 1&2 (80:20) reported at $320-325/mt cfr Chattogram, against $315/mt cfr prior week.
In the bulk market, US west coast suppliers offers were heard at $330-335/mt cfr Chattogram.
The daily index for Latin America-origin HMS 1&2 (80:20) settled at $318/mt cfr Chattogram, up $2/mt from Wednesday. South American yards turned away from export markets amid strong demand in their domestic markets, few deal were heard at HMS #1 at $322-325/mt cfr Chattogram. Buying interest was still around $312-315/mt cfr Chattogram for HMS 1&2 (80:20) with few offers.
Major steelmakers in Chattogram traded billets at BDT42,000/mt ($495/mt) ex-works Chattogram, up BDT500-1,000/mt from the prior week close. Large steel producers like BSRM and AKS could raise prices in the next few days. On Wednesday, large producers offered rebar at BDT56,000-57,000/mt ex-works. With a possibility of a further hike by BDT500-1,000/mt in steel prices to adjust higher input costs.
Dhaka-based finished steel producers continued to trade rebars at BDT50,000-50,500/mt ex-works, at prices up by BDT1,000-1,500/mt from the prior week. Domestic shipbreaking scrap equivalent to P&S traded in the range BDT32,000-32,500/mt ex-yard Chattogram, up by BDT1,000/mt from the prior week. Offers for shipbreaking scrap jumped this week as domestic scrap surged and yards have limited supply due to fewer ship arrivals last few weeks.
($1= BDT84.93)