Bangladesh: Imported scrap prices rise on rebar support

• News of US-origin bulk scrap cargo booking is making rounds
  
  
• Bulk scrap offers continue to head north
  
  
• Mills post strong half-yearly financial results
  
  

Bangladesh's imported scrap offers in containers and bulk have continued to edge higher this week on price support from rebar after mills lifted offers last week.

Container prices up in recent bookings

Containerized imported scrap trade has remained more or less stable. However, prices have inched up, SteelMint understands.

• UK-origin shredded is being offered at $585-590/t CFR, up by $5/t w-o-w.
  
  
• In a deal concluded last weekend, UK-origin 2,000 t of shredded and 1,000 t of PNS have been booked at $580-590/t CFR basis.
  
  
• UK HMS 1&2 (80:20) is being quoted at $550/t CFR levels, up by $5-10 w-o-w.
  
  

Bulk trade slows on high offers

Fresh bulk offers for US-origin shredded are at $590/t CFR levels, moving up significantly by $10-15/t w-o-w. But the disparity in bids and offers made buyers wait and watch. Yet, a few major mills continued booking US bulk cargoes at increased offers.

A major mill was heard to have booked US-origin bulk scrap cargo, comprising 30,000 t of HMS 1&2 (80:20) and shredded. The cargo has been booked at $565-575/t CFR Chittagong levels. However, confirmation could not be received till the time of publishing this report.

Two major mills reveal financial results

• GPH Ispat has declared its six months (July-Dec'21) financial results. The net profit for the period (Jul-Dec'21) stood at BDT 949.3 million (mn), up 36% compared to BDT 696.4 mn in the year-ago period.
  
  
• BSRM has also declared its six months financial results, as per a company release. Net profit for (Jul-Dec'21) stood at BDT 2,009.1 million (mn). Profit surged by 67% compared to BDT 1,202.5 mn in the same period last year.
  
  

Rebar prices remain high

Domestic rebar market activities have improved throughout the week, as compared to the dull market situation observed a week ago. Key players like BSRM, GPH, Abul Khair etc in the Chittagong market set rebar prices at BDT 80,000-82,000/t ($93-953/t) exw, unchanged w-o-w.

As per SteelMint's assessment prices increased by BDT 1,200/t to BDT 81,000-81,500/t exw Chittagong ($943-948/t).

Dhaka-based steel producers, on the other hand, have increased rebar prices further by BDT 2,000/t ($23/t) to 76,000-78,000/t exw ($883-907/t). The clearer weather after the smog and rainy days in the last two months are likely to give a boost to construction and support the higher prices.