Import bulk scrap offers fell slightly after a minor correction was seen in bulk freight rates. Offers for US origin HMS were $575-580/ton CFR Chittagong - around $5-10/ton lower.
However, the market remains quiet due to the lack of trade deals.
Due to limited bulk offers and bid-offer differences from Japan and the US, a leading producer in Bangladesh has shipped an EU-origin truck carrying 35,000 t HMS (80:20) for December 21 shipment towards the end of last week. Bulk carrier booked. The deal was concluded at $560/ton, CFR Chittagong.
On the other hand, offers for Japanese bulk scrap have also decreased by $19/t FAS compared to the Kanto scrap export tender. "Bulk deals are likely to happen soon, as offers are already coming down," a Japanese scrap dealer said.
Bangladesh's cast iron scrap imports decreased by 20% in October'21 compared to the previous month. The country imported 230,000 tons of scrap in October versus 300,000 tons in September. The US remained the largest exporter of scrap to Bangladesh, with 200,000 tons in October versus 220,000 tons in September.
Container reservation is being made actively
Bangladeshi steelmakers were active in purchasing containerized scrap. Many large mills have also switched to container reservation. Import shredded scrap offers are mostly at $580-585/t CFR Chittagong.
Since winter is the most preferred season for rebar consumption, steelmakers actively replenished their stocks.
Rebar prices continue to rise
The country's domestic market was slow as rebar prices remained high. Steel consumption has slowed down due to the increase in prices.
Major mills kept local rebar prices stable for another week. Currently, producers' offers are at the exy-Chittagong level of 77,000-79,000 BDT ($900-923/t). Dhaka-based mills also kept their prices unchanged, offering 74,000 BDT/ton ($862/ton) exy basis.
Bulk scrap purchases are likely to be made by mills for restocking needs.
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