Bangladesh: Rebar offers hit all-time high on rising scrap prices

• Rebar offers up by BDT 2,000/t ($23/t) w-o-w, hitting all-time high 
• Imported scrap offers in bulk and container continue to move northward
• Bulk ferrous scrap imports remain stable m-o-m in Feb’22

Domestic rebar offers in Bangladesh skyrocketed this week owing to increasing demand and rising scrap prices on account of limited imported offers. Major players in the Chittagong market set rebar prices at BDT 83,000-84,000/t ($966-977/t) exw, up by BDT 2,000/t w-o-w, hitting an all-time high, sources confirmed. Many market participants believed demand is on the higher side due to the upcoming holy month of Ramzan.

SteelMint’s assessment prices increased by BDT 2,000/t w-o-w to BDT 82,000-84,000/t exw-Chittagong ($954-977/t).

Dhaka-based steel mills also increased rebar prices further by BDT 4,000/t to BDT 81,000-82,000/t exw ($943-954/t).

“Prices are moving up on a d-o-d basis. Steel mills are unable to balance the increased raw materials and finished steel prices,” said a steel producer.

 Mills actively restocking scrap cargoes in containers

Containerised scrap trade in Bangladesh remained active for another week, sources informed SteelMint. “Currently, the market is very strong in Bangladesh. Every segment is benefiting from the Ukraine and Russia war and prices are increasing rapidly on supply concerns,” said a local source.

Fresh offers for UK-origin shredded are being quoted at $595-600/t CFR levels, moving up by $5-10/t w-o-w. Notably, the prices are hovering at an all-time high since Aug’16, as per prices maintained with SteelMint.

Recent deals

• Around 2,000 t of UK-origin shredded have been booked by a major Dhaka-based mill, at $585-590/t CFR Chittagong, in the last couple of days.
• In another deal, 1,000 t of UAE HMS1 and PNS mix cargo has been sold by a trader at $600/t CFR Chittagong.
• Additionally, a total of 5,000 t of UK-origin shredded and PNS material were booked at $595/t CFR, HMS at $550/t, and bundles at $515/t CFR Bangladesh, respectively by a trader last weekend.

Bulk scrap offers from US rally

Considering the continued hike in imported scrap offers, buyers remained less interested in bulk cargoes. Fresh offers for the US-origin bulk material are at $600/t CFR Chittagong levels, up by $10/t w-o-w. Buyers need to cover the remaining bookings for March-April shipments, SteelMint learnt.

On the other hand, Japanese materials are still at a higher level, though no firm offers were heard.

Although no new bulk scrap booking has been reported in Bangladesh this week,  buyers will have to book in the coming days to secure deliveries, highlighted a trading source.

Bangladesh’s bulk ferrous scrap imports remained stable at 0.23 mnt in Feb’22 compared to January shipments, as per customs data. The USA was the top exporter with 60,581 t, followed by the Netherlands and the UK with 44,176 t and 38,498 t, respectively. On a yearly basis, scrap imports witnessed an exceptional hike of 109% as against 0.11 mnt in Feb’21.