The Bangladesh government has further extended its lockdown restrictions from 23 Jul-5 Aug’21, now ordering shutdown of manufacturing plants, SteelMint learnt from market sources. In addition, trading was affected due to the Eid holidays from 19-22 Jul’21. Thus, the imported scrap market remained quiet this week.
Containerised imported scrap offers firm: Imported scrap offers into Bangladesh remained firm this week too, with no major changes noticed, while the market saw limited deals throughout the week. Most of the deals were concluded before the Eid holidays had started.
- Offers for UK/EU-origin shredded are being quoted at $555-565/t CFR Chittagong levels.
- HMS 1&2 (80:20) is being quoted at $525-530/t CFR Chittagong. Notably, the difference between shredded and HMS has widened now.
“Festive holidays are on at present. The market will open on 23 Jul’21 but the lockdown has extended for another 14 days till 5 Aug’21. This time, the lockdown is strict and all production activities will stop. From the first week of Aug’21, we may have clarity on the market outlook,” said a local market participant.
Bulk scrap buying remained quiet due to low finished steel demand during the holidays. The buyers expect to see positive sentiments post-the Eid holidays, if the government allows resumption of activities, SteelMint understands.
Domestic steel prices firm, trade at standstill: The finished steel market remained dull due to the lockdown and Eid holidays, SteelMint learnt. Dhaka-based rebar prices remained unchanged at BDT 67,000-68,000/t CFR , while a few steel mills are selling rebar at BDT 66,500/t exy. Major mills, too, kept their rebar prices unchanged for yet another week at BDT 71,000-72,000/t exy-Chittagong.
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