With the rise in global scrap prices, Bangladesh’s domestic rebar producers have increased prices in the last few weeks. The high input costs led to an increase in rebar prices.
Rebar offers by the key players like BSRM, GPH, Abul Khair, KSRM etc in the Chittagong market are at BDT 80,000-82,000/t ($931-955/t) exw, up by BDT 1,000-1,500/t ($12-17/t) w-o-w.
Following the suit, Dhaka producers have also increased rebar prices by the same quantum to BDT 75,000-76,000/t exw ($873-885/t). However, domestic consumption from the end-users is not up to the mark with major government projects going at a slow pace due to the cash availability issue.
Bulk scrap offers rise further
After having seen active imported bulk scrap bookings in the last two weeks from USA, the UK, and Australia, buyers have now slowed down. Market players expect that buyers might have booked sufficient inventory for the Mar’22 shipments.
- Indications for the US-origin bulk HMS are heard at $580-583/t CFR Chittagong, witnessing a hike of $10-15/t w-o-w.
- Meanwhile, Japanese H2 material is offered at $580/t CFR Chittagong levels, up by $5-10/t w-o-w, though deals did not happen. Japan’s domestic consumption has increased in the last few months, as its economy revived post-Covid lockdowns. Bangladesh consequently started sourcing more bulk scrap from USA and the UK.
Container trade continues
Although, containerised imported scrap demand is active, trade activities continue to remain slow. “Buyers are in fear that prices may correct anytime, hence they are buying hand-to-mouth,” said a scrap buyer.
- UK-origin shredded is being offered at $575-585/t CFR, inching down by $5/t w-o-w.
- In a deal concluded last weekend, New Zealand-origin shredded is booked at $570/t CFR Chittagong.
- UK HMS 1&2 (80:20) is being quoted at $540-545/t CFR levels, unchanged w-o-w.
- Offers for UAE-origin P&S are at $585-582/t CFR levels, unchanged w-o-w, while buyers’ bids stand at $575/t.
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