Posted on 19 Jul 2024
Bangladesh's imported scrap market continues to remain quiet, with buyers and sellers adopting a wait-and-see approach.
Offers for HMS (80:20) scrap from Australia/Brazil are at around $410-415/tonne cfr Chattogram, while United Arab Emirates-origin HMS 1 scrap is at $420-422/t, and PnS scrap at $427-430/t cfr. Bids for each grade are coming in at $5-7/t lower, notes Kallanish.
Bangladeshi sellers had expected higher freight rates to prompt buyers to accept current offers, but buyers cited liquidity issues, currency depreciation, and the monsoon season as reasons for holding back.
"We're experiencing flooding in some areas, and steel demand from the construction sector is weak, so sellers are not buying imported scrap now. However, we won't lower our offers because buyers will return for restocking in a few weeks," says a scrap trader in Dubai.
Domestic scrap and rebar prices in Bangladesh have declined by BDT 2,000-3,000/t ($17-25), leading buyers to prefer domestic scrap over imported material.
"Buyers are making need-based purchases from the local market. Although imported scrap is of higher quality, the easy availability of domestic scrap amid reduced demand has made it more appealing," remarks a rebar manufacturer in Dhaka.
Looking ahead, the imported scrap market is expected to remain quiet at least till the monsoon season is over.
Source:Kallanish
