Offers for HMS (80:20) scrap from Australia and Brazil are currently around USD410-415 per ton CFR Chattogram. Meanwhile, HMS 1 scrap from the UAE is priced at USD 420-422 per ton, and PnS scrap is offered at USD 427-430 per ton CFR. However, bids for these grades are USD 5-7 per ton lower.
Bangladeshi sellers had anticipated that higher freight rates would encourage buyers to accept current prices, but buyers are holding off due to liquidity challenges, currency depreciation, and the monsoon season.
The country is facing flooding in some areas, which, coupled with weak steel demand from the construction sector, has led to a reduction in the purchasing of imported scrap. Despite this, sellers are maintaining their offers, expecting buyers to return for restocking in a few weeks.
In Bangladesh, domestic scrap and rebar prices have fallen by BDT 2,000-3,000 per ton (USD 17-25), leading buyers to favor local scrap over imported material. The superior quality of imported scrap is outweighed by the easy availability of domestic scrap amid reduced demand.
Looking ahead, the imported scrap market is expected to remain quiet until the end of the monsoon season.
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