Bangladesh: Mills lift rebar offers on imported scrap price rally

• Mills lift rebar prices up to $40/t w-o-w
  
  
• Imported scrap prices in containers up by $50/t w-o-w
  
  
• High bulk offers keep buyers on the sidelines
  
  

The domestic rebar market gained momentum owing to demand from end-users increasing gradually. Key players like BSRM, GPH, KSRM etc have set rebar offers at BDT 85,000-87,000/t ($991-1,014/t) exw. Mills have continued to hike prices further for the fifth sequential week, sources informed. However, mills are waiting for a clear market picture before end-users accept the new prices against the backdrop of limited raw material availability and rising global and regional scrap prices.

Interestingly, mills have raised prices by around BDT 10,000/t ($116/t) in the last few weeks.

SteelMint's assessment prices increased by BDT 2,500-3,500/t ($29-40/t) w-o-w to BDT 84,000-87,000/t exw-Chittagong ($979-1,014/t).

On the other-hand Dhaka-based steel mills also raised rebar prices further by BDT 2,000-3,000/t to BDT 82,000-84,000/t exw ($956-1,014/t).

Imported scrap trade slows down

The ongoing Russia-Ukraine war has disrupted the market. The high offers from major suppliers have impacted the global market. Similarly, imported scrap trade has slowed down in Bangladesh, while both buyers and suppliers are quiet. However, the buyers are booking as per their requirements.

"Only a few traders are active currently, owing to scarcity in the market as buyers are not ready to accept high rates," said a source.

Recent deals & offers

• Fresh offers for UK-origin shredded are being quoted at $650-560/t CFR level, moving up significantly by $50-60/t CFR w-o-w. The increased freight rates and limited container availability boosted the offers.
  
  

"Most of the mills have stopped buying imported scrap, owing to high offers. Limited transactions were heard," said a Dhaka-based steel mill.

Bulk scrap market quiet

The most-awaited Japan's monthly Kanto scrap export tender was concluded today. A total of 10,000 t of scrap was awarded and the average price for H2 scrap stood at around JPY 63,510/t ($548/t) FAS, higher by JPY 7,665 ($66/t) m-o-m, SteelMint learnt from sources.

Bulk cargo buyers in Bangladesh stayed away from the Japanese market due to high freight rates and instability in the market, sources informed.

• No firm offers were heard for Japanese material; however, a few indications were received for bulk H2 scrap at $700/t CFR levels.
  
  
• On the other hand, bulk US-origin HMS is being quoted at $710/t CFR Chittagong basis. No deals concluded at these levels.
  
  

Bulk ferrous scrap imports into Bangladesh, a major buyer in South Asia, remained stable m-o-m in Feb'22, as per the vessel line-up data maintained with SteelMint. The country imported 0.23 mnt in Feb'22 as against the same volumes seen in the previous month. The US was the top exporter with 60,581 t, followed by the Netherlands and the UK with 44,176 t and 38,498 t, respectively in Feb'22.