Bangladesh is facing significant political turmoil following the resignation of its Prime Minister, leading to concerns within the steel industry about the normalization of operations and the resumption of scrap bookings. An interim government is expected to be formed this week, with business activities anticipated to return to normal by the end of the week or early next week.
An international scrap trader based in Dubai, who sells to the Bangladeshi market, mentioned that the interim government has communicated that calm will soon be restored and shipments should continue as usual by Thursday or Friday. However, full normalization is expected by next week.
Another trader noted that business activities have been at a standstill for almost a month due to the chaos, but as August progresses, they expect improvements and a resumption of selling activities.
Market participants are optimistic that after a month-long lull in scrap and rebar demand, buyers will begin restocking soon, which should support scrap prices from key exporters like Brazil and Australia. BSRM is set to commence commercial operations at its new Mirasarai re-rolling plant within the next one to two months. This plant will also produce steel wires, reducing the country's dependency on imports, which will likely increase the company’s scrap demand.
The latest offers for HMS scrap from Latin America and Australia were around USD 410-414 per ton, while UAE-origin HMS 1 scrap was priced at USD 420-422 per ton CFR Chattogram.
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