Sponge iron export offers to Bangladesh slumped further during the week amidst fall in prices of the commodity In Indian domestic markets.
As per SteelMint weekly assessment, export offers in the current week for 78-80 FeM lumps stood at USD 360-365/MT against last week’s price of USD 365/MT, CPT Benapole (dry port of India & Bangladesh). Meanwhile, fresh offers for Sponge Iron through sea port are hovering at USD 380/MT compared to last week at USD 380-385/MT, CFR Chittagong.
As per trade participants, export buying has been consistent for quite some time. However the offers dipped in line with decline in domestic prices. The Indian domestic sponge offers came down by INR 500-1,000/MT (USD 8-15) W-o-W and around INR 1,000-2,000/MT (USD 15-30) since start of Mar’18.
According to sources in Bangladesh steel producers have even increased the proportion of Sponge Iron in their feed from 3-5% earlier to 5-7%. The smelters in Bangladesh traditionally have a higher percentage of scrap in the charge mix due to high power tariff, healthy availability of local ship breaking scrap and bulk scrap imports.
Bangladesh has steel melting capacity of about 3.0-4.0 MnT, in which the country’s imports in Calender year 2017 recorded at 0.46 MnT for Sponge iron (DRI) & about 1.02 MnT for Scrap, the imports of sponge iron declined while scrap imports surge on Y-o-Y basis. In 2016 the country’s import for Sponge iron were at 0.62 MnT & Scrap at 0.72 MnT.
Rebar prices volatile in Bangladesh
Bangladesh is one of the fastest growing countries and has observed volatility in local rebar prices by about 1,000-2,000 Tk (Bangladeshi Taka) in last week. The local steel prices in Bangladesh are highly influenced with Global scrap prices movement.
Current prices for grade 60 Rebars, 12 mm by small mills in Dhaka, Bangladesh are reported about 66,000/MT Bangladesh Taka (USD 798) & by large mills around 70,000/MT Bangladesh Taka (USD 847); ex-works & excluding local taxes.
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