- Mills wary amid high freights, weak rebar margins
- Rebar prices decline as steelmakers offer discounts
Imported containerised ferrous scrap prices from the EU and the UK to Bangladesh inched down by up to $2/tonne (t) w-o-w, amid soft end-user demand. Mills remained cautious about fresh trades due to rising freights in the deep-sea market, squeezed margins in rebar sales, and weaker construction activities across major hubs in the country.
According to market insiders, workable levels for US-origin West Coast HMS (80:20) bulk cargoes were at $372-375/t CFR. However, no significant trades were heard at these levels, as fresh offers from the US East Coast to Turkiye eased some pressure on suppliers.
Japanese H2 bulk offers declined slightly to $355-358/t CFR from $358-360/t last week.
BigMint’s weekly assessments
- European-origin HMS (80:20) prices were stable w-o-w at $360/t.
- European-origin containerised shredded dropped by $2/t w-o-w to $376/t.
- Japanese-origin H2 bulk prices stood at $357/t CFR Chattogram, down by $1/t w-o-w.
- US-sourced HMS (80:20) bulk prices stood at $372/t, increasing by $2/t w-o-w.
Market commentary
“Rebar prices in Bangladesh have dropped by BDT 400-800/t ($3-7/t) suddenly, with mills offering discounts amid softer demand. The market remains subdued, influenced by ongoing war tensions between India and Pakistan,” said a Chattogram-based trader. “Current levels are Dhaka rebars at BDT 80,000-81,000/t ($658-666/t), Chattogram rebars at BDT 84,000-85,000/t ($691-699/t), and domestic scrap in Chattogram at BDT 55,000-56,000/t ($452-460/t).”
A Dhaka-based scrap importer noted, “Many small buyers are struggling to open letters of credit (LCs) and are not operating at full capacity due to weak buying interest in the market. Bulk bookings remain slow. PNS from Hong Kong, Singapore, and Australia is being offered at $380-390/t CFR. Rebar is at BDT 82,000/t ($674/t) in Dhaka and BDT 85,000/t ($699/t) in Chattogram, while local PNS scrap is trading at BDT 57,000-58,000/t ($469–477/t).”
“Australia-origin shredded is mostly in the $375-380/t CFR Chattogram range, and I recently sold 1,000 t at $378/t,” said a Dhaka-based scrap importer. “HMS (80:20) offers from Australia are coming in at $350-355/t. Meanwhile, rebar and billet prices remained stable compared to last week.”
A Chattogram-based trader stated, “The market is a little slow in Bangladesh – there is not much trouble with LC openings at banks, but some buyers have pulled back. Dhaka mills are not seeing any sales improvement, with unofficial discounts of BDT 500-1,000/t ($4-8/t). Malaysia busheling and Singapore-origin PNS were heard at $385-395/t, though buyers are keeping bids below $385/t for both grades.”
Recent deals
- Around 1,000 t of Australian-origin shredded booked at $378/t CFR Chattogram.
- Around 1,000 t of Australian-origin HMS 80:20 sold at $360/t CFR Chattogram.
- Around 1,000 t of PNS scrap from Australia booked at $380/t CFR Chattogram.
Outlook
The outlook for Bangladesh’s scrap market points to continued softness, with mills cautious on fresh bookings due to high freights and weaker rebar margins. Construction activities are expected to slow further due to the monsoon, keeping demand subdued. Prices are likely to remain range-bound in the near term.
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