IRON and STEEL
Scrap & Recycling
In conversation with market participants, SteelMint learned that bulk scrap import prices to Bangladesh have come down considerably in recent bookings made.
A bulk mixed scrap cargo from US was reported to have been booked by Bangladesh mill towards the end of the previous week at USD 325/MT, CFR for Shredded and USD 320/MT for HMS. This is lower by around USD 10-15/MT against last bookings reported at USD 340/MT, CFR Bangladesh. however, the confirmation from the steel mill is awaited till the publication of this article.
However, sentiments in the domestic market have turned very weak amid starting of Ramadan month and slow demand for finished steel. Limited booking for imported scrap has observed in containers amid less buying interest among importers and less clarity on scrap global prices.
SteelMint’s price assessment for containerized Shredded scrap from UK, USA and Canada stands in the range of USD 340-345/MT, CFR Chittagong, down marginally USD 5-10/MT against the last week’s report. However, offers from most of the scrap yards were learned to be mostly around USD 345/MT, CFR amid limited availability of offers in the market.
Containerized HMS offers remained almost stable with HMS 1 from South America was being offered at USD 335-338/MT, CFR Chittagong. While offers for P&S scrap in containers assessed at around USD 355-360/MT, CFR.
Domestic scrap prices continue downtrend on bearish sentiments - Local shipyard scrap prices are being reported at BDT 35,000-35,500/MT (USD 414-420) dropping further from BDT 36,500/MT levels last week. Local melting scrap prices reported hovering in the range of BDT 33,000-33,500/MT, ex-works inclusive of taxes.
Ship plate prices in Chittagong’s market have dropped by around BDT 500/MT (USD 6) on a weekly basis. Ship plates (16 mm) are being traded at around BDT 44,000/MT (USD 521), ex-works Chittagong against BDT 44,500/MT level last week while prices for 12 mm ship plate stood at BDT 43,000/MT inclusive of local taxes.
Two bulk scrap cargoes to arrive shortly - As per vessel line up data maintained with SteelMint, Two bulk imported scrap cargoes from US carrying 66,700 MT mixed scrap are expected to arrive to Chittagong port today. The cargoes named Merel D comprising 33,600 MT scrap and Erradale comprising 33,100 MT were booked from US suppliers around two months ago are likely to add scrap inventories with leading steelmakers further.