Posted on 04 Oct 2024
Imported scrap offers in Bangladesh have increased by nearly $10-15/t this week, despite limited buying interest.
The rise is linked to the upward trend in global scrap and steel prices, driven by an increase in Chinese steel futures before their National Day holidays, which began on 1 October, notes Kallanish.
Current HMS (80:20) scrap prices from Australia and Latin America to Bangladesh are reported around $385-390/t, while shredded scrap is around $400/t and PNS scrap is approximately $405/t cfr Chattogram.
“A wave of distress sales at lower price levels has stopped, with sellers raising their offers. Amid expectations of further price increases, a few deals have been concluded at these current rates,” says a Dhaka-based scrap trader.
On the demand side, steel consumption in Bangladesh has nearly halved over the past two months due to halted construction following political upheaval.
“Demand remains stagnant due to ongoing LC issues and reduced construction activity. However, some buying is occurring from plants operating at 50% capacity, which need raw materials to keep running,” notes another Dhaka-based scrap trader.
Public projects are currently stalled as contractors fled following the government change in early August, impacting the public sector, which accounts for 60% of steel consumption.
Additionally, rising home loan interest rates have further slowed private housing projects, worsening the decline in steel and scrap demand in the country.
Source:Kallanish
