Bangladesh: Steel mills further raise rebar offers on surging imported scrap prices

• Mills raise rebar offers by BDT 2,500/t ($30)
• Bulk scrap prices rise by around $15 w-o-w

Domestic rebar offers have been hiked by major mills for third successive week. Prices have moved up by BDT 2,500/t and currently offers stand at BDT 70,000/t exw Chittagong levels. Rebar offers of smaller mills have moved up further by BDT 1,000/t and are currently being quoted in the range of BDT 65,000/t exw.

Bulk scrap prices from Japan rise further: Imported bulk scrap offers to Bangladesh have continuously moved north. One Japanese bulk cargo is heard to have been booked by a Bangladesh steelmaker at around $475/t CFR levels, however, other details could not be confirmed till the time of publishing this report.

SteelMint’s assessment for Japanese H2 now stands at $485/t CFR Chittagong, increasing considerably by $17 w-o-w. Japan’s monthly Kanto Tetsugen scrap export tender is scheduled on 10th Mar’21, sources have reported. Market seems to be awaiting tender results for a clearer market direction.

USA origin bulk cargo price indications also moved up on increased freight rates. Currently, fresh offers for HMS 1&2 (80:20) is assessed at $510-520/t CFR Chittagong basis.

Imported scrap trades in containers continue to happen: Following a hike in global scrap prices, containerised imported scrap offers have surged, resulting in limited trades. On the other hand, due to slow domestic demand, market insiders are doubtful on price acceptance from buyers.

“If buyers resist then we will see some corrections. Buyers and Suppliers are constantly in fear of fluctuating prices. Shredded offers are now at $490-495/t CFR levels, but so far no body has shown interest at that price. Pakistan has also been less aggressive so far this week, which in turn may lead to increased number of offers for Bangladesh” shared a trade source.

• Fresh offers for UK origin shredded are being quoted at $480-490/t CFR Chittagong levels
• Around 1,000 t of Malaysia origin shredded have been booked at $490/t CFR Chittagong basis
• Another deal was concluded for around 5,000 t of HMS 1&2 (80:20) from different origins (Aus/NZ/UK) at $448/t CFR levels towards the closing of the week. Whereas few more have been concluded at $455/t levels earlier this week
• HMS (80:20) offers from UK are being cited at $465-470/t CFR level, up by $10 levels w-o-w

Local shipyard scrap prices have also climbed further by over BDT 2,500/t and currently stand at BDT 45,000/t exy level.

Outlook: Considering that scrap stocks are low in mills, they are likely to resume bookings actively, SteelMint understands.