Bangladeshi mills limited their imports of ferrous scrap containers in a falling market. Domestic steel prices showed an uptick as large mills refused to lower their asking rates.
The daily Davis Index for containerized shredded, Monday, settled at $453.21/mt cfr Chattogram, up by $0.71/mt. On Monday, mills were away from negotiations, while asking prices were $455-465/mt cfr Chattogram.
The daily Davis Index for containerized HMS 1&2 (80:20) of US-origin settled at $428.75/mt cfr Chattogram, down by $8.75/mt. Mills resisted offers of $425-435/mt cfr Chattogram for HMS 1&2 (80:20) from Australia or Latin America and purchased domestic scrap which were more competively priced.
A mill based in Dhaka bought UK-origin PNS in containers at $420-425/mt cfr Chattogram. Offers for Dubai-origin #1 HMS were in the range of $380-390/mt cfr Chattogram. With Indian buyers bidding lower than two other subcontinental markets, some Dubai suppliers opted sell ready to ship containers to Bangladesh.
The daily index for containerized HMS 1&2 (80:20) of Latin-origin settled at $425/mt cfr Chattogram. Most yards focused on domestic sales where demand and prices are relatively higher. Indications of HMS #1 from Chile were at around $435-445/mt cfr Chattogram.
Falling domestic prices prompted a few Indian suppliers to check export viability. Suppliers kept Sponge iron offers unchanged at $360-365/mt CPT Benapole.
In the bulk market, with Turkish prices unchanged on Friday from the prior day at $440/mt cfr Turkey, suppliers quoted $480-485/mt cfr Chattogram for a mix of shredded and HMS 1&2 (80:20). Buyers’ interest was at $450-460/mt cfr Chattogram.
Domestic scrap offers firm, rebar flat
Prices for shipbreaking scrap equivalent to P&S which were at BDT37,500-38,000/mt ex-yards on Friday rose to BDT39,500-40,000/mt ex-yards Chattogram on Monday. Mills kept their bids at BDT37,000-38,000/mt ex-yards. Domestic billets were offered at BDT48,000-49,000/mt ex-works Chattogram, while medium-scale mills in Dhaka lowered offers for rebar by BDT2,000-2,500/mt to BDT57,500-58,500/mt ex-works.
Large scale steelmakers continued to offer rebar at BDT65,000-67,000/mt ex-works, unchanged from the prior week.
BSRM Steel Mills, the largest steelmaker in the country is set to merge with its parent company BSRM Ltd effective from February 1. This move will help the country’s leading rod producer cut costs, get tax benefit and boost profit.