- LC challenges push domestic scrap prices higher
- Mills maintain minimal bookings amid uncertain market conditions
Bangladesh’s imported scrap market remains sluggish, with stable workable levels despite slightly higher offers from Europe, Australia, Brazil, and the US.
Rebar sales continue to struggle as the construction sector faces prolonged sluggishness due to delays and halts in government projects.
BigMint’s weekly assessments
- European-origin containerised shredded inched up by $1/t w-o-w stood at $385/t
- European-origin HMS (80:20) dropped $1/t w-o-w to $365/t
- US-sourced HMS (80:20) bulk prices stood stable at $363/t
- Japanese-origin H2 bulk prices stood at $352/t CFR Chattogram stable w-o-w
Shredded scrap offers from Europe are at $385-388/t, with bids ranging between $374-375/t. Australian shredded scrap is being offered at $378-380/t, while bids stand at $366-370/t. Meanwhile, PNS and Busheling scrap are quoted at $388-392/t, with buyers bidding around $380-382/t.
For HMS 90:10, sellers are quoting $375/t CFR Chattogram, including freight costs of $15-20/t from Australia. Dhaka buyers are showing interest at these levels, but Chattogram mills remain hesitant, holding their bids at $365-366/t CFR, creating a gap in negotiations. Freight rates from Australia to Chattogram remain elevated, adding further pressure on trade discussions.
Market offers remain on the higher side, with Australian shredded at $385-386/t, HMS 90:10 at $372-375/t, and PNS from Hong Kong/Singapore at $390-394/t CFR Chattogram.
Buyers are bidding lower, at $378-380/t for Australian shredded, $365-368/t for Australian HMS 90:10, and $385/t for PNS from Singapore/Hong Kong. Negotiations for Australian shredded are ongoing, with expectations of settling around $380/t CFR.
Market update
A Chattogram-based mill official said, “Demand remains scarce, with major projects either significantly slowing down or completely halted. New projects are not coming in, and overall demand is nearly half of what we saw in February. Rebar prices in the Chattogram market are at BDT 85,000-86,000/t exw ($700-708/t) but sales remain sluggish, and a market recovery still seems distant.”
Recent trades by the mills include 2,000 t PNS from Hong Kong at $381/t CFR, 1,000 t shredded from Australia at $382/t, 1,000 t HMS 80:20 from Australia at $358/t, and 1,000 t HMS 1 at $369/t.
A Dhaka-based trader noted that 9,000 t of PNS was sold to Bangladesh at $388/t CFR Chattogram, with 4,000 t from Malaysia and 5,000 t from Singapore. Shredded scrap, which was at $385/t last week, has now dropped to $375/t. HK PNS is trading at $380-382/t, while Australian shredded scrap sees bids at $370-372/t against offers at $380-382/t. Australian HMS 90:10 is offered at $360-365/t, but buyers are bidding around $355/t, creating a nearly $10/t gap, making deals unworkable. Freight from Australia to Chattogram remains high, adding further pressure.
A Singapore-based supplier has sold 2,000 t of PNS and rebar bundles to Chattogram at $388/t CFR. Meanwhile, Australian suppliers are shifting focus to Indonesia, where four-five major companies–primarily Chinese-owne–are actively purchasing premium grades like busheling, PNS, and blue steel with simpler paperwork and smoother payment processes.
Domestic market
In Chattogram, rebar sales prices have inched up to BDT 86,000-88,000/t ($708-724/t), depending on payment terms, though demand remains slow. Dhaka prices stand at BDT 82,000-83,500/t ($675-688/t), varying between immediate and credit payments. Domestic scrap prices are at BDT 56,000-58,000/t ($461-478/t), with slight supply tightness. Mills in Dhaka are keeping bookings minimal, with some negotiations ongoing for Middle East and Brazilian-origin materials.
Mills remain active, but bid-offer gaps persist, limiting trade. Local scrap prices are rising due to LC challenges, with many factories struggling to secure raw materials. Domestic scrap is now at BDT 55,000-57,000/t ($453-469/t). Rebar stands at BDT 83,000/t ($683/t) in Dhaka and BDT 85,000-87,000/t ($700-716/t) in Chattogram, but demand remains weak amid slow construction and stalled government projects.
Outlook: Some mills are targeting full production during Ramadan, anticipating a slowdown post-holiday. Meanwhile, global scrap prices are expected to stay firm, keeping offers elevated in the coming weeks.
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