Bangladesh domestic steel market sentiments have improved compared to last week with mills raising finished steel offers. Bangladesh based mills have raised their rebar list prices due to price rally in imported scrap. Rebar offers have increased by around BDT 1,500-2000/t w-o-w, sources reported SteelMint. The major mills in Bangladesh have raised rebar list prices to BDT 60,000/t exw basis prices. However, discount of BDT 2,000-3,000/t are heard being offered varying as per mills.
Imported scrap prices in Bangladesh witnessed a sharp rise over the week due to supply tightness with low scrap generation in key export regions along with limited container availability. SteelMint’s assessment for Bangladesh imported scrap has increased by $50/t m-o-m.
Mills understand that the scrap availability is becoming difficult as they have started trying to match the prices of other countries. Bangladesh buyers are already bidding HMS 1&2 (80:20) at $370/t CFR levels for cargoes but not able to cover as suppliers are not accepting and targeting at $380/t level. Most bulk suppliers are sold out for December due to shortage of cargoes, shared a US scrap trader with SteelMint.
Limited offers and container freight rates push up scrap prices –
Shortage of containers in South Asia and rising demand for grain transportation has increased freight costs which seems to be a strong gain in Japan and Taiwan markets this week.
- SteelMint’s assessment of containerized shredded 211 scrap from UK/Europe origins stands at $383/t CFR Chittagong, up by $10/t w-o-w
- HMS 1 was sold in containers at $370/t CFR Chittagong basis from Brazil
No firm report of bulk scrap bookings was reported so far this week. Few deals of Indian sponge iron export were heard to have concluded last week at $360-363/t CPT Benapole levels.
Outlook – Hike in scrap prices are likely to keep domestic steel prices supported.
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