Trading activity for imported ferrous scrap in Bangladesh remains sluggish even after the Ramadan month and Eid holidays in early April, notes Kallanish.
While buying remains slow, sellers are showing reluctance to sell in the Bangladesh market due to stronger demand and better sales prospects in neighboring India.
Prices for Australia-origin HMS scrap are reported at $405-406/tonne, Canada-origin HMS1 (90:10) at $405/tonne and shredded at $430-435/tonne, Australia-origin PNS at $415/tonne and UK-origin PNS at $420/tonne, all on a cfr Chattogram basis.
Bangladeshi steel mills are well-stocked and have reduced production, leading to lower scrap demand. The Ramadan slowdown has also impacted consumption.
Importers are struggling to open letters of credit (LCs) due to the ongoing financial constraints, further dampening trading activity.
Market participants expect the situation to continue until the general elections in Bangladesh, scheduled for January 2024.
In the meantime, Bangladeshi scrap importers are focusing on the Indian market, where demand and prices are relatively stronger.
Overall, the Bangladesh ferrous scrap market remains subdued, with limited trading and a cautious approach from both buyers and sellers amid the prevailing economic and political uncertainties.
