With global scrap prices on a continuous increase, Bangladesh-based steel mills have lifted re-bar offers by BDT 1,500-2,000/t ($18-24/t). Major mills in Bangladesh are offering rebar (10-16 mm) at BDT 72,000-74,500/t ($842-871) exy-Chittagong, up BDT 1,500-2,000/t, w-o-w.
Dhaka-based plants have raised offers to BDT 70,000/t ($818/t) on exy-basis. Around 300 t deals were concluded at these offers.
Meanwhile, the demand for scrap continued to grow due to the peak season of building construction. In addition , higher freight rates and container availability issues have resulted in further hike in prices.
Recent offers
- Shredded of UK/EU-origin in containers is being offered at $575-580/t CFR Chittagong levels, up by $5-10/t w-o-w. Limited deals are heard to have been concluded at higher offers.
- In a recent deal, around 2,000 t of UK-origin HMS 1&2 (80:20) was concluded at around $550/t CFR Chittagong levels.
- Fresh offers for HMS from different origins are being quoted at $550-560/t CFR Chittagong , moving up significantly by $20/t w-o-w.
Interestingly, containerised imported scrap prices to Bangladesh have hit all-time high as per the prices maintained with SteelMint.
Limited bulk offers
Bulk scrap offers to Bangladesh remain unreachable to the major mills for the time being. Bulk scrap cargoe offers from the major supplying countries like US and Japan continued to move up on high freight rates and due to scrap shortage.
“The market is short on scrap. Bangladesh mills are looking for bulk scrap cargoes but are unable to get material,” said a US-based trader.
- Price indications for US-origin HMS bulk scrap stand at $575/t CFR Chittagong, inching up w-o-w.
- No firm bulk Japanese H2 scrap offers were heard but price indications stand at $585-590/t CFR Chittagong, slightly up w-o-w.
Outlook
Imported scrap offers are likely to go up further, on container and scrap shortage.
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