- Recovery in market activity expected after June
- Mills request duty-free raw material imports to boost steel exports
Bangladesh’s imported scrap prices witnessed a rangebound trend this week, and workable levels dropped by $4-5/t w-o-w in containerised scrap. On the otherhand, bulk scrap inquiries remaining slow despite the slight easing seen in LC openings. Meanwhile, inquiries from a few large mills continue to be heard. Meanwhile, the domestic market, especially in Dhaka, faced challenges with certain mills operating at low levels.
The domestic scrap market witnessed a rangebound trend w-o-w, with prices assessed at BDT 52,000-53,000/t ($427-435/t). Steel market volatility continues to weigh on semi-finished sales of the re-rolling mills.
Domestic billet prices ranged from BDT 72,000-73,000/t ($591-600/t), while rebar prices witnessed a slight drop of BDT 500-600/t to BDT 86,500-87,500/t ($710-719/t) in Chattogram.
BigMint’s weekly assessments
- European-origin containerised shredded was down by $4/t w-o-w at $381/t
- European-origin HMS (80:20) down by $4/t w-o-w to $364/t
- US-sourced HMS (80:20) bulk prices were up slightly by $2/t w-o-w to $365/t
- Japanese-origin H2 bulk prices stood at $353/t CFR Chattogram, up by $3/t w-o-w
US offers ranged from $366-372/t, but buyers bid below $358-360/t. Meanwhile, shredded offers from the US to Bangladesh stood at $378-380/t.
Offers stood at $375-380/t CFR Chattogram for Australian shredded, $365/t for HMS (80:20), and $385-390/t for PNS.
Current containerised scrap prices are $358-360/t for HMS and $370-375/t for shredded from Australia.
Market scenario
A Dhaka-based mill source said, The market has remained relatively stable compared to last week’s offers. Despite ongoing inquiries, sentiment remains subdued, with limited activity due to significant bid-offer disparities.
Major mills are holding ample inventories, which has curbed their buying interest. Meanwhile, a Chattogram-based mill is operating at reduced capacity but is anticipated to resume purchasing in the near future, signalling potential market movement.
As per a overseas trader, Libya-origin HMS 80:20 is being offered at $365/t for Bangladesh, but no deals have been finalised due to unmet bid prices.
Bangladesh’s $4.7 billion IMF loan tranche delayed
The release of Bangladesh’s $4.7 billion IMF loan’s fourth tranche is delayed to 12 March due to natural disasters. The IMF postponed its February meeting, citing a month-long suspension. Key conditions include liberalising the US dollar exchange rate and improving revenue collection. Bangladesh also seeks a $750 million increase, with stricter conditions on tax collection.
Steelmakers seek duty-free raw material imports to boost exports
BSRM and other companies have requested duty-free raw material imports with bank guarantees to boost exports, according to a commerce ministry official. BSRM Chairman Alihussain Akberali urged Commerce Adviser Sheikh Bashir Uddin to direct NBR for approval, proposing a maximum bank guarantee of BDT 150 million ($1.39 million) for 5,000 t of billets. If the required exports are not met within six months, a 7% penalty on the bank guarantee will be imposed.
Chattogram ship recycling market
Chattogram’s ship recycling market remained subdued this week due to Bangladesh’s economic struggles. Steel plate prices held steady at $529/LDT, while the taka weakened against the US dollar. Economic challenges worsened with a VAT increase, leading to protests. Market activity is expected to rise after June, with Panamax bulk carriers sold at $460/LDT.
Outlook
Market sources indicate that the uncertain price trend is expected to persist until Ramadan in March or by the end of the first quarter. Chattogram mills are holding substantial scrap inventories, while rebar sales remain sluggish. Market insiders anticipate a slow finish to the month, with limited inquiries and continued caution in the market.
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