Bangladesh removed its Covid-19-related lockdown in early August 2020
, leading to a re-opening of the steel retail markets and easing the movement of scrap across the country.
The decision also allowed induction furnace (IF) mills to restart production, creating a rise in demand for steel scrap.
But two Bangladeshi mill sources told Fastmarkets that high freight costs have priced them out of the market for United States-origin deep-sea scrap in recent weeks, with freight costs heard at $100 per tonne for scrap from the US West Coast to Bangladesh. A weak local market was also keeping a lid on import demand.
A deal was agreed for a 25,000-tonne deep-sea cargo from Australia and New Zealand at $515 per tonne cfr Bangladesh for HMS 1&2 (80:20) in the assessment week, sources said....