Bangladesh: Steel market quiet on lockdown restrictions, approaching Eid

The Bangladesh market has observed fewer activities in imported scrap and steel this week, due to the ongoing Covid-19 lockdown restrictions.

“Bangladesh has extended the lockdown till 14 Jul’21 in an attempt to curb Covid spread. In addition to it, upcoming Eid holidays scheduled from 20 Jul’21 will keep labour away from the market. Hence, trading in steel and imported scrap is expected to remain slow throughout the month,” said a trade source.

Containerised scrap market in wait-and-watch mode: Due to the ongoing lockdown, the steel industry remained quiet while scrap buyers opted to wait and watch the market silently, with limited bookings heard in the last seven days, SteelMint understands.

• Fresh offers for imported containerised shredded scrap remain at higher levels of $555-560/t CFR Chittagong basis. But bids remained much lower at $535-538/t, some even seeking below $530/t but not getting any offers.
• Around 2,000 t of UK-origin busheling has been sold by a trader at $580/t CFR Chittagong basis, early in the week. Current offers are heard at $580-585/t, CFR Levels.
• Another deal was concluded by the same trader, for around 2,000-3,000 t of Brazilian HMS 1&2 (80:20) at $520/t CFR Chittagong levels.
• Fresh offers for HMS 1&2 (80:20) from the UK are being quoted at $530-540/t CFR levels.

In addition, “The market would likely remain quiet post-lockdown release on 14 Jul, amidst upcoming Eid holidays. So the current month will be like this. Very low volumes of trade would prevail this month and the market is likely to bounce back from mid-Aug,” said an active market player based in Bangladesh.

No recent bulk scrap deals were reported this week as mills had restocked good volumes towards end-Jun from the US and Australia.

Local scrap prices edge up- Local shipyard scrap prices have touched to BDT 50,000/t exy level this week, moving up by BDT 500/t levels w-o-w.

Domestic steel market remains dull: The domestic steel market remained dull this week, with rebar offers largely stable against last week. Due to the upcoming Eid holidays and limited delivery available during lockdown from the steel mills, rebar prices were under pressure. Steelmakers do not have room to raise prices.

Major mills kept their rebar offers firm at BDT 70,000-71,000/t exw-Chittagong. Dhaka-based mills are quoting rebar in the range of BDT 67,000-70,000/t exw, unchanged w-o-w.