PRICING NOTICE: Proposal to launch three new Bangladesh import ferrous scrap prices

Fastmarkets is prosing to launch three new Bangladesh ferrous scrap import prices to widen the coverage of the growing South Asian market.

The new prices include two for containerized scrap and one for deep-sea bulk cargoes, all on a cfr Bangladesh basis.

Fastmarkets’ assessment price for steel scrap heavy melting scrap 1&2 (80:20) deep-sea origin import, cfr Bangladesh was proposed in February and has been published since March 2020, attracting growing interest from participants across the scrap markets.

Fastmarkets already collects many cfr Bangladesh prices for containerized cargoes during each weekly pricing session. We propose to formalize these by publishing weekly prices for containerized shredded scrap and HMS 1&2 (80:20).

Bangladesh is a regular buyer of scrap – both in bulk and in containers – with smaller lot sizes involved in the container trade appealing to many of the country’s smaller induction furnace steel mills.

The new prices will deliver more choices to subscribers, and increase the transparency and clarity of our Asian scrap coverage.

The addition of the prices, which will be published in line with International Organization of Securities Commissions (Iosco) standards and benchmark regulations, will reinforce Fastmarkets’ position as the leading global price reporting agency for Asia’s ferrous scrap markets.

The proposed price specifications are as follows:

Assessment: Steel scrap shredded deep-sea origin import, cfr Bangladesh

Quality: Shredded scrap compliant to ISRI specifications 210-212
Quantity: Minimum 3,000 tonnes (bulk)
Location: cfr Chattogram
Timing: 3-6 weeks
Unit: $/tonne
Payment terms: Letter of credit on sight
Publication: Every Thursday, 5-6pm Singapore time

Assessment: Steel scrap shredded containerized import, cfr Bangladesh
Quality: Shredded scrap compliant to ISRI specifications 210-212
Quantity: Minimum 100 tonnes (in containers)
Location: cfr Chattogram
Timing: 3-6 weeks
Unit: $/tonne
Payment terms: Letter of credit on sight
Publication: Every Thursday, 5-6pm Singapore time

Assessment: Steel scrap HMS 1&2 (80:20) containerized import, cfr Bangladesh

Quality: HMS 1&2 (80:20 mix) compliant to ISRI specifications 200-206
Quantity: Minimum 100 tonnes (in containers)
Location: cfr Chattogram
Timing: 3-6 weeks
Unit: $/tonne
Payment terms: Letter of credit on sight
Publication: Every Thursday, 5-6pm Singapore time

The consultation period for this proposed launch will end one month from the date of this pricing notice, on Monday September 21. The launch will take place, subject to market feedback, on Thursday September 24.

To provide feedback on this price or if you would like to provide price information by becoming a data submitter to any of these prices, please contact Lee Allen by email at: pricing@fastmarkets.com. Please add the subject heading ‘FAO: Lee Allen, re: Bangladesh scrap prices.’

To see all of Fastmarkets’ pricing methodology and specification documents, please go to www.metalbulletin.com/prices/pricing-methodology.html.

What to read next
Fastmarkets has corrected its MB-IRO-0188 - Iron ore 67.5% Fe pellet feed cfr Qingdao and MB-IRO-0013 - Iron ore 65% Fe concentrate cfr Qingdao indices, which were published incorrectly on Wednesday March 19 due to a technical calculation error.
These inferred net price indices would be calculated based on the PIX Pulp Europe (gross) price indices and Fastmarkets’ assessment of typical rebates offered to customers. The basic specifications for the new inferred net price indicators would be as for the PIX Pulp Europe gross price indices. The consultation period for this proposed launch starts […]
Full details of the prices covered by this consultation can be found here. Specifically, Fastmarkets requested comments on whether the current discount levels for European pulp have grown too high and invited open-ended feedback on potential remedies moving forward. Feedback from the industry was mixed, with a number of potential remedies suggested by the industry including […]
Fastmarkets invited feedback specifically on how to treat quarterly contracts in the monthly index calculation. Feedback received regarding this matter was divided, as some thought it is more important to take the quarterly deals into account separately, whereas other respondents did not see major differences and suspected this would make the price collection more difficult. […]
The details affect the following prices:AG-SYB-0079 Crush Margin, China Soy (US Gulf), M1, yuan per tonneAG-SYB-0082 Crush Margin, US Soy, M1, c$ per bushelAG-SYB-0080 Crush Margin, Brazil, Soy, M1, $ per tonneAG-SYB-0078 Crush Margin, China Soy (Brazil), M1, yuan per tonneAG-SYB-0081 Crush Margin, Argentina Soy, M1, $ per tonneFastmarkets clarifies that, where the value of a futures contract is factored […]
The adjustment, which follows a consultation which ended on Tuesday March 18, will enable Fastmarkets to track a broader range of data by incorporating major ports, including Hay Point Coal Terminal, Abbot Point Coal Terminal, Gladstone Port and Port Kembla, alongside the current Dalrymple Bay Coal Terminal. To ensure consistency of the assessments, normalization of ports […]