Bangladesh scrap offers drop amid severe financing delays
Financing issues in Bangladesh have become more severe and, as a result, imports have become more difficult. Foreign banks are reportedly squeezing the limits of Bangladeshi banks, mainly because of their very low reserves.
Furthermore, the nation is eyeing a second tranche of an International Monetary Fund (IMF) loan. The IMF, under first review for the second tranche, has set a quantitative target to maintain $24.46 billion of reserves till June, but the country’s net reserves in line with the IMF calculation stood at $24.17 billion.
According to sources, the IMF will hold its first review in October regarding the disbursement of the second loan tranche, which is likely to get disbursed in November.
Meanwhile, offers for US West Coast-origin bulk HMS, shredded, and bonus dropped to $420-425/tonne, $425-430/t, and $430-435/t cfr Chattogram, respectively. Whereas, only one mill was heard floating bids at $405/t cfr Bangladesh for bulk HMS. The deal was not concluded.
"LCs for the majority of previously concluded bulk deals are yet to open ... How could the buyer or the seller ask for more [deals]?" says a trading source. "Sellers have now become cautious and do not want to take risks, meaning they are not offering to mills with which they have LCs pending."
Meanwhile, offers have come down for containerised bookings as well. A few thousand tonnes of Australia-origin shredded and PNS were booked at $440-445/t cfr Chattogram this week and last. Meanwhile, offers for Europe-origin shredded are heard at $435-440/t cfr, whereas bids are reported at $425-430/t cfr Chattogram.
Thailand- and Malaysian-origin busheling was booked at $450-455/t cfr Chattogram on Monday and Tuesday. Thailand-origin new tin plate bundles were booked at $440-445/t cfr Chattogram.
Canadian-origin HMS 90/10 in 40-foot containers was booked at $410/t cfr Chattogram this week. Australia-origin HMS 80/20 was booked at $415/t cfr Chattogram last week and this.
Imports of United Arab Emirates-origin HMS1 scrap have reportedly surged in Bangladesh, Kallanish notes. The influx grew mainly on the back of immediate requirements, and owing to the urgency, buyers are reportedly ready to pay for extra cash as well.
According to sources, around 10,000-20,000 tonnes of UAE-origin HMS1 were booked at $425-430/t cfr Chattogram this week and last. A deal for 5,000t of UAE-origin HMS1 was made on Wednesday at $430/t cfr Chattogram.
Offers for ship scrap from containers were heard at $625/light displacement tonne (ldt). Scrap from dry bulkers and tankers is hovering at $575/ldt and $605/ldt, respectively.
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Anonymous
Very good overview of the weekly steel market.
Anonymous