Bangladesh: Imported scrap demand muted amid adequate bookings, dull finished steel sales

Bangladesh imported scrap trade remained subdued for another week. The negative sentiments and seasonal demand slow down due to Ramadan kept buyers away from the market.

"The market saw very few buying inquiries as mills had already booked bulk imported scrap a couple of weeks back and hence, reduced their orders now due to sluggish finished steel market. Buying inquiries will remain dull due to upcoming holidays", said a prominent scrap trader.

It may be recalled that mills had booked nearly 4-5 bulk scrap cargoes from US earlier this month.

"The market is very quiet now as Bangladeshi mills have sufficient material. Thus, knowing the current price levels is difficult. Last indications for bulk HMS from US were around $665/t CFR", said a supplier.

Recent deals and offers

• Fresh offers for UK-origin shredded in containers are being quoted at $655-660/t CFR, down further by $10/t w-o-w.
  
  
• Offers for UK-origin HMS (80:20) in containers are at $620-625/t CFR. However, mills' price indications are at around $615/t CFR.
  
  

Rebar prices fall further on limited demand

Finished steel prices inched down. Major players are heard offering a discount in rebar of around BDT 2,000/t exw. SteelMint assessed prices at BDT 85,000/t exw-Chittagong ($985/t), including VAT, lower by BDT 1,000/t w-o-w.

Dhaka-based mills opted to a wait-and-watch approach as key mills lowered their offers. Currently, Dhaka mills are offering rebar at BDT 76,000-78,000/t ($881-904/t) exw, down by BDT 2,000-3,000/t w-o-w.

Demand from end-users is likely to pick up after the Eid holidays. The construction activities have come to a standstill due to a considerable increase in prices over a long time.

Outlook: The market will probably remain dull next week due to Ramadan. Trade activities may regain momentum after the Eid holidays.