Bangladesh’s domestic rebar offers remained largely stable throughout the week due to reduced working hours in lockdown, owing to a rapid increase in active cases of COVID-19. Finished steel market has slowed down as construction activities have turned limited due to imposed restrictions.
Bulk scrap market remains silent
After a bulk booking from Japan last week, bulk imported scrap buyers opted to wait and watch for the time being. However, Bangladeshi buyers are likely to come back to the market to restock their inventory before the Ramadan holidays.
Bulk scrap offers for Japanese origin H2 are now being quoted in the range of $460-465/t CFR Chittagong levels for May cargo shipments. Freight rates have come down slightly which may keep buyers active in the market. “Bulk freight has reduced slightly so that’s providing some relief for Bangladesh buyers”, shared a prominent market insider.
On the other hand, US origin bulk shredded offers are now available at a $470/t CFR basis, whereas HMS 1&2 (80:20) is being cited at $460/t CFR Chittagong levels.
Imported scrap bookings in containers continue
“Market sentiments are down. This is normally the peak time to complete construction projects and restock essentials before the Ramadan holidays. But the market has slowed down due to Covid restrictions imposed by the govt.” highlighted a scrap buyer.
Containerised scrap offers have maintained its northward momentum., Buyers are finding it difficult to buy scrap as sellers are demanding higher prices in a sluggish market. However, limited trades were reported.
Recent trades and offer
- In a confirmed trade, UK/EU origin shredded and HMS 1&2 (80:20) have been sold to Bangladesh based steel mill at $475/t and $455/t CFR Chittagong basis respectively towards the beginning of this week.
- Fresh offers from UK/EU origin shredded is now being quoted at higher levels of $480-485/t CFR levels, buyers need to increase their bid levels to book fresh slots.
- HMS 1&2 from same origin is being offered at $455-460/t CFR Chittagong levels
Domestic rebar offers of major mills stable: Currently, rebar offers from major mills stand at BDT 69,000-71,000/t exw Chittagong levels. Prices from Dhaka mills are at BDT 67,000-68,000/t exw, stable w-o-w. Billet prices were high but sales volume is very low.
Outlook: Imported scrap bookings may increase on restocking ahead of holidays, but increasing restrictions for COVID control may remain a concern for mills.
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