Bangladeshi medium mills have slightly raised their rebar offers this week in line to maintain average conversion spread (margins).
As per the conversation with market participants, its being noticed that trade discounts are hovering in the same range at around BDT 800-1,000/MT although recent surge in prices has recovered their conversion spread. Meanwhile it is being analysed that upcoming Ramadan Festival may result less activity in the local market of Bangladesh.
As per sources, large scale mills and medium/small scale mills are having appropriate stock level and current trade volume near to average basis.
Further as per reports, the government is planning to introduce VAT in 3 categories of 5, 7 & 10% in the upcoming budget which will be announced during Jun’19, in which for steel the proposed VAT is about 10%.
As per weekly assessment, the mid sized mills Rebar prices in Dhaka, Bangladesh is hovering at BDT 59,500-60,500/MT (USD 705-717); increased by around BDT 500-1,000/MT, grade is 500 W. The prices are ex-works, including local taxes & size 8-32 mm.
— Rani Re-rolling Mill Ltd. based in Dhaka, offering Rebar (Rani TMT) at BDT 60,500/MT (10-32 mm), Ex-Work.
— Purbachal Steel Mill Ltd. (PSML) based in Gazipur, offering Rebar at BDT 61,500/MT (10-32 mm), Ex-Work.
Note – Above Prices offered by manufacturers are subject to re-confirmation.
However as per update, large mills have roll-over Rebar offers this week and offering at BDT 63,500-64,500/MT (USD 753-765), similar against last week offers. The prices are ex-works, including local taxes & size 8-32 mm.
In line domestic billet prices, the Bangladeshi mills have slightly raised prices and reported at around BDT 51,000-51,500/MT (USD 605-610) ex-works in Dhaka; increase by around BDT 1,000/MT against last week.
Sponge iron import offers being raised of Indian origin and currently evaluated at USD 335-340/MT, which was last week assessed at near to USD 330/MT CNF Chittagong, Bangladesh.
In line with imported scrap, the prices are remain range-bound this week and stands for containerized Shredded scrap at around USD 340-345/MT, CFR Chittagong. However, scrap yards based in UK, Europe and Australia are quoting Shredded in the range of USD 345-347/MT, CFR.
| Current Prices (BDT/MT), Ex-work Dhaka, inclusive of taxes | ||
| Particular | 12-Apr’19 | 04-Apr’19 |
| Billet (Ex-Dhaka) | 51,000-51,500 | 50,000-50,500 |
| Rebar (Medium Mills) | 59,500-60,500 | 58,500-59,500 |
Source – SteelMint Research
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