Bangladesh: Large Scale Mills Keep Rebar Offers Stable

Large scale mills in Bangladesh have kept their rebar offers firm despite slow movement and declining (melting scrap & sponge iron) prices, SteelMint learned from its market sources. In context to large scale mills, the rebar offers were reported at around BDT 61,500/MT (USD 725) ex-works Chittagong, including local taxes & size 10-32 mm, as shared by trade sources.

Rebar offers of mid-sized mills in Dhaka, Bangladesh are reported at BDT 54,500-55,000/MT (USD 642-648); for 500 W, against last assessment. Few small mills were heard offering BDT 54,000-54,500/MT. The prices are ex-works, including local taxes & size 10-32 mm.

As per participants, demand remained on average basis in a peak season, however they are not assuming to get any major change for near term as imported scrap prices are declining. Further, rebar prices have not shown signs of improvement yet but few medium/small scale mills have increased rebar prices by BDT 500/MT.

Meanwhile, the domestic billet offers are assessed at BDT 45,500-46,000/MT (USD 536-542); ex-works in Dhaka.

Deals for Indian sponge to Bangladesh are assessed at USD 300/MT CPT Benapole (dry port of India & Bangladesh), which is equivalent to USD 315-320/MT CFR Chittagong, Bangladesh.

Also last week, a major steel mill based in Chittagong has booked a bulk vessel 32,000 MT of composite cargo, comprising of Shredded scrap at USD 310/MT, HMS at USD 305/MT and bonus scrap at USD 315/MT CFR Chittagong. The shipment for the cargo is expected for Feb'20.