Bangladesh: Imported containerised scrap prices inch up by $4/t w-o-w; market cautious amid slow construction

• Weak demand at higher levels pressures rebar prices in Bangladesh.
  
  
• Limited raw material availability prevents sharper scrap price declines.
  
  

Bangladesh's imported containerised scrap prices witnessed an uptick this week as the global scrap market is moving north amid a supply crunch. Workable levels for Bangladesh stood $5-6/t below the offers for containerised scrap.

On the other hand, bulk scrap prices from the US and Japan witnessed mixed trends, with buyers remaining slow amid weak inquiries except for major bulk players in Chattogram.

As per insiders, the market in Bangladesh started showing positive trends from last weekend. This could be due to the approaching Ramadan, but whether it will be sustained or not after that will only become clear later.

According to a Chattogram-based mill source, the Bangladesh steel market saw strong demand, driving rebar prices up by BDT 4,000-5,000/t ($33-41) within a short span from the second week to the third week of January. The surge was primarily due to pent-up demand released during the dry season. However, demand softened after 15 days as price pressure weighed on buyers.

Today, the same source reported that rebar prices have declined due to weak demand at higher levels. Offers for Chattogram rebar stand at BDT 87,000-88,000/t ($714-721), but buyers are holding bids at BDT 85,500-86,000/t ($702-706).

Another Dhaka-based trader noted that limited raw material availability could be preventing a sharper price drop despite weakening demand. While a few major mills have sufficient stock and have already capitalised on previous gains, there is currently little pressure to lower prices to stimulate demand.

A Chattogram-based market participant noted, "Most inquiries are happening in bulk rather than containers. Rebar prices have softened due to weak demand at higher levels. While official prices stand at BDT 87,500-88,500/t ($719-727), buyers are holding firm at BDT 86,500-87,000/t ($711-715).

Offers on a CFR Chattogram basis include PNS from Singapore, Malaysia, and Hong Kong at $385/t, while shredded is at $380/t. Australian HMS (90:10) is being offered at $375/t, and HMS (80:20) at $365/t. Trades are being negotiated at these levels, and major buyers may step in. Meanwhile, shipyard scrap is around BDT 54,000-55,000/t ($443-451).

Recent deals:

• 1,000 t Brazil bundles sold at $340/t CFR Chattogram.
  
  
• 2,000 t HMS (80:20) from Australia sold at $367/t CFR Chattogram.
  
  
• 1,000 t Hong Kong PNS sold at $390/t CFR Chattogram.
  
  
• 1,500 t UAE-origin heavy PNS and Fabrication sold at $390/t CFR Chattogram.
  
  
• 500 t shredded from Malaysia sold at $360/t CFR Chattogram.
  
  

A Dhaka-based trader commented, "The rebar market has been declining over the past two days, with BSRM and AKS reducing prices by BDT 2,000/t. Currently, rebar prices stand at BDT 87,000-88,000/t ($714-723) in Chattogram and BDT 82,000-84,000/t ($673-690) in Dhaka.

Billet prices are at BDT 72,000/t ($591), while local scrap remains weak--PNS at BDT 58,500/t ($481) and HMS at BDT 56,000-57,000/t ($460-468). Construction activities remain slow, and government projects have yet to gain full momentum."

Outlook

With construction activity expected to pick up ahead of Ramadan, demand may rebound in the short term before stabilizing. The coming days will be crucial, as major players adopting a wait-and-watch approach could help steady prices. However, market conditions remain uncertain, with potential fluctuations in either direction.