en.Wedoany.com Reported - Affected by weak demand for finished steel products and expectations of further price declines, Bangladeshi steel mills continued to postpone new orders. On July 1, import prices for black scrap fell week-on-week. Market transactions remained limited after the Muharram holiday, with buyers staying cautious and bid-ask spreads constraining new trading activity.
In the container market, Australian-origin HMS (80:20) was quoted at $370-375/ton CFR, Brazilian-origin HMS at $365-370/ton CFR, and container shredded scrap was heard around $395-405/ton CFR. Market participants noted that workable levels for both HMS and shredded scrap had dropped to approximately $370-390/ton CFR, reflecting continued pressure on import prices.
BigMint's weekly assessment data showed that European-origin container HMS (80:20) CFR Chittagong stood at $366/ton, down $9/ton week-on-week; European-origin container shredded scrap was at $400/ton, down $6/ton week-on-week; Japanese-origin bulk H2 was at $389/ton, down $5/ton week-on-week; and US-origin bulk HMS (80:20) was at $395/ton, down $4/ton week-on-week.
Market trading was largely subdued this week, with only one cargo of 1,000 tons of UK-origin shredded scrap concluded at $400/ton CFR Chittagong. Most buyers remained on the sidelines, with bids for US-origin HMS maintained at $350-355/ton CFR, while offers for US West Coast-origin HMS (80:20) stood at $400-405/ton CFR, with buyers' workable levels at $390-395/ton CFR. The persistent mismatch between buyer expectations and seller quotes limited new transactions.
A trader in Dhaka said that demand was heard in Bangladesh, but buyers were staying on the sidelines due to expectations of further declines in import scrap prices. Another market participant added that weak demand for finished steel products made scrap procurement less attractive, with most buyers remaining in a wait-and-see mode.
Despite softening import scrap prices, the domestic steel market remained largely stable. Rebar was heard at BDT 84,000-86,000/ton ($698-714/ton) ex-works Dhaka and BDT 88,000-90,000/ton ($747-763/ton) ex-works Chittagong. Billet traded at BDT 71,500-72,000/ton ($580-584/ton), and ship plate scrap was assessed at around BDT 53,500-54,500/ton ($434-443/ton) yard-delivered.
In the ship recycling market, Bangladesh remained quiet this week due to the Ashura holiday and monsoon weather continuing to limit beaching activities, with no new market sales reported. However, the first post-conflict vessel—the 9,369 LDT bulk carrier Andhika Paramesti—was sold at $460/LDT (as-is, Semarang), indicating that delayed candidate vessels for recycling are gradually returning to the market.
Supported by domestic demand, plate prices rose to BDT 67,000/ton ($543/ton) from BDT 65,000/ton ($527/ton) the previous week. Shipbreakers were optimistic about improved vessel arrivals in the third quarter, benefiting from good LC availability, stable financing conditions, and supportive macroeconomic fundamentals. Reference recycling prices: tankers $458-463/LDT, bulk carriers $478-483/LDT, and container ships $488-493/LDT.
BigMint expects the Bangladeshi import scrap market to remain subdued in the coming week, as steel mills continue to procure on a need-to basis and await lower import prices. Unless demand for finished steel products improves, buyers are likely to remain cautious in procurement, putting pressure on both deep-sea and container scrap prices.
