BANGLADESH STEEL SCRAP: Further price increases squeezing mill margins

Steelmaking margins at Bangladeshi mills have come under pressure after a decline in steel prices combined with further price increases for imported scrap over the last week, sources told Fastmarkets.

Scrap prices continued to rise in the South Asian country due to a strengthening of the United States’ domestic scrap markets, which made sellers more reluctant to offer cargoes for export.
Run rates at major Bangladeshi mills have also continued to rise, with a few large steelmakers operating close to 100% of their capacity, a Bangladeshi mill source said.
“The US is holding up domestically, so I don’t see export prices going down. US shippers are holding back material because the domestic market is strong,” a South Asian trader said.
“This is a boom period, and sellers are trying to pare the losses made in the first half of the year. There will be a correction eventually, though. The Bangladeshi market is inflated,” he added.

Offers for bulk cargoes of for heavy melting scrap 1&2 (80:20) from the US West Coast started this week at $330 per tonne cfr...

Published

Lee Allen

September 11, 2020

07:55 GMT

Singapore