Imported scrap trades in Bangladesh slowed on Tuesday as steel prices lost steam. Rebar and billet prices declined by BDT2,000/mt.
However, large mills with depleting inventories looked to book bulk and containers. But offers for containerized scrap are close to none.
The daily Davis Index for containerized shredded, Tuesday, settled at $439.38/mt cfr Chattogram, up by $5.63/mt. Despite improved profit margins, mills could stay away from the market. Offers for containerized shredded from the UK and Europe were at $440/mt cfr Chattogram. Bids for Australia and Latin American shredded were at $430-435/mt cfr Chattogram.
In the bulk market, offers for shredded from the US west coast crossed $455-460/mt cfr Chattogram amid continued trades in Turkey.
The Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $420.36/cfr Chattogram, up by $4.29/mt from Monday. Asking prices have increased by $15-20/mt since late last week. Very few offers were heard at $420-425/mt cfr Chattogram from Australia.
The daily index for Latin America-origin HMS 1&2 (80:20) settled at $415/mt cfr Chattogram, up by $2/mt. Following bullish global cues and stronger domestic markets, Latin American traders are hoping to sell a mix of HMS #1 and P&S at prices above $420-425/mt cfr Chattogram. Some trades for mixed scrap in containers from Australia, New Zealand, and Chile were at $410-415/mt cfr Chattogram.
Domestic steel prices mixed
Despite high input costs, steel prices started declining in some regions as mills offered discounts. On Tuesday, large-scale rebar makers like BSRM, AKS, and GPH kept their base asking prices unchanged at BDT61,000-63,000/mt ex-works.
Medium and small-scale rebar makers lowered rebar prices by BDT1,000-2,000/mt. Supply of domestic scrap is rising as shipbreaking operations at Chattogram at the usual levels. But heavy winter fog is likely to impact transportation.
Some mills have opted for production cuts to balance the supply-demand mismatch and avoid high input costs.Cash crunch also played a role in this decision.
Steel mills in Chattogram, Tuesday, offered domestic billets at BDT46,000-48,000/mt ($543-567/mt) ex-works Chattogram, down BDT2,000/mt from a day ago. Market sentiment in Bangladesh is mixed amid the rising scrap supply from shipbreaking. Prices lost about BDT3,000-3,500/mt ($35-40/mt) from late last week to BDT37,000/mt ex-yards. Plate prices are at BDT42,000/mt ex-yards.