Exports offers of Indian made DRI remained firm despite weak demand from Bangladesh, which is one of the largest buyer of Indian made DRI. Usually out of total exported Indian DRI, major procurement is done by Bangladesh.
The fresh export offers from India are heard at USD 280-285/MT CPT Benapole port, Bangladesh; offers similar against a week ago and since the beginning of July 2017.
Bangladesh continues to stay weak even after it has almost been one month since the government of Bangladesh has decided to remove the SAFTA benefits. The buyers are now ready to pay the new heavy duties, but due to seasonal low demand for steel products have made buyers away from the trade activities. Sponge Iron attracts an regulatory duty of 5% , which was 1000 taka (USD 12) before the budget and Indian exporters used to get export benefit of zero duty under SAFTA agreement.
According to Steelmint Analysis, the deals have limited. The other products such as ingot and billet are not in demand at all as there is no rebate on imports due to demolish of 15% VAT on rebars which was announced in Budget declared on 1st June 2017.
Local mills reported 12 mm rebar prices being stable at around 47,000-50,000/MT Bangladesh Taka (583-620USD) and billet prices at around 41,000-42,000/MT Bangladesh Taka (508-521USD).
Leave a Reply