Bangladesh's imported scrap prices have climbed by USD 10-15 per ton this week, even though buyer interest remains subdued. The price increase is largely attributed to a global rise in scrap and steel prices, supported by a surge in Chinese steel futures before China's National Day holidays, which started on October 1.
Currently, HMS (80:20) scrap from Australia and Latin America is offered at around USD 385-390 per ton CFR Chattogram.
Local scrap traders note that distressed sales at lower price points have ended, with sellers now raising their offers. Despite weak demand, a few transactions have been finalized at these higher prices due to expectations of further price hikes.
Steel consumption in Bangladesh has nearly halved in the past two months. This drop is linked to stalled construction activities caused by recent political instability. Some steel plants, currently running at only 50% capacity, are still purchasing raw materials to maintain production levels, though demand remains weak due to lingering issues with letters of credit and reduced construction activity.
Public sector projects, which account for 60% of the country's steel consumption, have come to a standstill following a government change in early August, as contractors have abandoned these projects. Additionally, a spike in home loan interest rates has further dampened the private housing sector, deepening the decline in both steel and scrap demand.
Comments
No comment yet.