Bangladesh: Domestic rebar offers up tracking the hike in imported scrap prices

• Imported bulk scrap offers up by around $35 w-o-w
• Buyers cautious for booking bulk scrap amid sharp price volatility
• Major mills raise rebar offers by BDT 2,000/t ($24) w-o-w

With the recent hike in imported scrap prices, Bangladesh’s domestic rebar offers have also moved north. Both bulk and containerised scrap prices have moved up significantly by $30-35/t w-o-w. However, deals have slowed down on high offers as the gap between offers and bids has widened. 

Bulk scrap offers move up by $40 w-o-w: Imported bulk scrap offers to Bangladesh have surged by  $35-40/t w-o-w. SteelMint’s assessment for Japanese H2 now stands at $465-470/t CFR Chittagong, registering a sharp hike of $40 w-o-w.

“Japanese scrap is being sold  to South Korea only,  no significant export deals were concluded recently to Bangladesh or Vietnam”, highlighted a Japanese scrap trader.

Furthermore, “USA origin bulk offers for HMS 1&2 (80:20) is being cited in the range of $470-480/t CFR basis. No new bookings have been reported, in addition to it, ocean bulk freight charges from USA to Bangladesh have now increased around $8-10/t for March shipment. I expect that prices would cross $500/t again soon”, shared a prominent US bulk scrap trader.

Containerised scrap market quiet on high offers: Imported scrap trades in container remained quiet this week as offers have surged up by $30 w-o-w. Buyers have turned more cautious if the current price level will sustain or not as containerised freight charges have also increased sharply, SteelMint learnt.

“Containerised sales are frequently happening in Bangladesh only, while other South Asian countries like India and Pakistan are completely silent now”, highlighted a prominent trader.

• Fresh offers for UK origin shredded is being quoted at $480-490/t CFR Chittagong levels 
• Around 1,000 t of Malaysia origin shredded have been booked at $480/t CFR Chittagong basis
• HMS (80:20) offers from UK are being cited at $450-460/t CFR level, marginally up w-o-w

Domestic rebar offers up: Major mills‘ have raised domestic rebar offers further by BDT 2,000/t and currently offers stand at BDT 67,500/t exw Chittagong levels. Rebar offers of smaller mills have moved up further by BDT 2,000/t and are currently being quoted in the range of BDT 63,000-64,000/t exw.

Local shipyard scrap prices have also climbed further by over BDT 1,000/t and currently stand at BDT 42,500/t exy level.  

Outlook– Steelmakers believe that rebar prices may rise further on the back of imported scrap price hike, however, acceptance from the construction industry remains a concern.