The steel prices in the Bangladesh domestic market have gain momentum due to rising imported scrap & sponge offers. In last 10 days, local billet & rebar prices reported a surge of 1,000-2,000 MT Bangladesh Taka (USD 12-25).
Market participants attribute this price hike to increased cost of production than demand.
“Rising raw material prices are pushing steel prices despite average demand” a senior sales person of a fairly large rolling mill based in Dhaka, Bangladesh stated.
12 mm Rebar offers by local mills are reported at 50,000-52,000/MT Bangladesh Taka (USD 615-640) and billet at 44,000-46,000/MT Bangladesh Taka (USD 540-565). The both prices increase by around 1,000-2,000/MT (USD 12-25) in last 7-10 days due to rising input cost (raw material prices). The prices are ex-works & excluding of taxes.
Domestic ship cutting plate prices reported at 33,000-34,000 Bangladesh Taka (USD 405-418), excluding of taxes.
Notably, imported scrap and sponge iron prices have increased by USD 5-10/MT in last one week. Current offers for HMS scrap being assessed at USD 345-350/MT CFR Chittagong and sponge iron (FeM 80%, lumps) at USD 320/MT CPT Benapole port.
Bangladesh is one of the fastest growing countries and the country has a total steel capacity of 3-4 MnT, which is expected to increase to 5 MnT in the years to come.
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