Bangladesh: Mills lift rebar offers as imported scrap prices rise further

• Limited deals recorded in container scrap market
• Bulk scrap trade remain absent this week
• Domestic rebar prices up by $23/t w-o-w

Bangladesh’s imported scrap market slowed down this week ahead of the upcoming holy month of Ramadan. However, imported scrap offers remained high, following the global uptrend. However, trading activities weakened, owing to the disparity in bids and offers. Market players opted to wait and watch for the clear market direction.

Containarised imported scrap trade limited

Imported scrap trade slowed down this week concerning the steep hike in its prices in the last couple of weeks. Additionally, the ongoing Russia-Ukraine war and increased crude oil prices has disturbed the global supply chain. “Buyers prefer to secure from short sea distance as offers from UK/EU-origin suppliers are not feasible at present,” said a scrap trader.

• Fresh offers for UK/Eu origin shredded are being quoted at $680-685/tonnes (t) CFR Chittagong levels but bids are still lower. SteelMint’s assessment stands at $667/t, CFR, up by around $10/t w-o-w.
• 4,000 t of HMS 1 from South Africa has been booked at $630/t CFR levels, while 2,000 t of Brazil-origin HMS 1&2 (80:20) has been sold at $620/t CFR.
• Another two deals have been concluded in which, Malaysia-origin 2,000 t of bushelling and 4,000 t of PNS have been booked at $665/t and $660/t CFR Chittagong basis respectively.

Furthermore, bulk buyers are away from booking any fresh cargo, after a deal was reported last week. Around 32,000 t of US-origin bulk scrap cargo, comprising HMS 1&2 (80:20) and shredded material was sold at $710/t and $715/t CFR Chittagong basis respectively. No firm offers were received from deep-sea cargo suppliers, yet the indications are above $730/t CFR level.

Japanese buyers are less interested in Bangladesh market currently, as suppliers are looking for higher bids, SteelMint understands.

Turkish mills gradually booked fresh slots for May shipments at a higher price which further supported increased imported scrap prices. A Denmark-origin cargo of HMS (80:20) was booked at $655/t while shredded scrap was booked at $680/t CFR by an Aegean steel mill. In another deal, a West Marmara-based mill booked UK-origin cargo of HMS (80:20) at $651/t CFR and shredded and PNS at $681/t CFR.

Domestic rebar prices hit a new high

Domestic rebar prices continued to hit new highs. Key players like BSRM, GPH, KSRM etc have raised their rebar offers further by BDT 2,000/t ($23/t) w-o-w to reach BDT 88,000-90,000/t ($1023-1046/t) exw. Limited deals were concluded at these levels.

Dhaka-based steel mills followed the cue, hiking prices by BDT 1,000/t ($11/t) to BDT 83,000-85,000/t exw ($965-988/t).

Outlook

Market participants believe this is a temporary hike and prices are likely to come down soon as the market will remain dull during Ramadan.