The local steel – Rebar prices in Bangladesh have slumped yet again by about BDT 2,500-3,000/MT (USD 30-36), as per SteelMint’s weekly assessment. Steel prices in the country have continued to decline over the last few weeks primarily due to sluggish domestic demand and falling local ship cutting scrap prices which is known as key source of raw material for country’s 50% steel production.
According to trade sources based in Bangladesh, the Holy month of Ramadan which would begin from May 15 is marked by a significant decline in construction activity due to labor shortage and this has in turn hit long steel prices adversely.
The current offers for Grade 500 Rebars (12 mm) by small mills in Dhaka are evaluated at BDT 56,000-57,000/MT (USD 675-687) against last week at around BDT 59,000-60,000/MT (USD 711-723); ex-mill. Meanwhile, large mills’ offers for rebars are heard at around BDT 58,500-59,000/MT (USD 705-711) ex-works. Most mills have reduced prices by about 2,500-3,000/MT (USD 30-36) in a week.
Local concast billet prices also reported a slump of around BDT 1,000-2,000/MT (USD 12-24) and are currently trading at around BDT 50,000/MT (USD 603). All prices are including local taxes.
Further the mill owners in Chhittagong, stated that, “buying inquiries remained limited. After the recent price amendment on weekly basis trade volumes registered regular movement.” Chittagong is the major industrial hub of Bangladesh where mostly large mills have been set up & produce almost 50-60% of country’s total steel.
The local ship cutting plate prices for 16mm reported at 42,000-43,000 BDT (USD 495-508). Half of Bangladesh’s steel production is made through the local scrap either from Ship cutting plates or generates from mills and the rest of the hot metal is produced through imported scrap or sponge.
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