Bangladesh: Rebar Offers Drop by BDT 500/MT (USD 6) over Limited Demand

The medium scale steel mills in Dhaka, Bangladesh have slightly reduced their rebar prices in line with market sentiments, SteelMint learned from its sources.

The current rebar prices through the mid-sized mills in Dhaka, Bangladesh are reported at BDT 53,500-54,500/MT (USD 630-642); for 500 W, down by BDT 500/MT as against last assessment.

It is also reported that a few small mills are trading rebars at around BDT 53,000/MT including general trade discount. The prices are ex-works, including local taxes & size 10-32 mm.

Meanwhile, the large scale mills are maintaining their rebar offers and are currently offering around BDT 61,500/MT (USD 724) ex-works Chittagong, including local taxes & size 10-32 mm, as shared by trade sources.

As per participants, the demand is less than average and few infrastructure projects have been delayed amid workforce absence due to CoronaVirus. This has adversely affected Chinese investment.

Further, medium and small scale mills have reduced their operational activities or are running under low capacity utilization by 20-30%. Trade discounts of around BDT 800-1,200/MT are being offered depending on booking quantities as well as payment terms.

Inline with this, domestic billet offers are registered at around BDT 43,000-43,500/MT (USD 506-512); ex-works in Dhaka.

Further, recent deals for Indian sponge to Bangladesh are assessed at USD 285-287/MT CPT Benapole (dry port of India & Bangladesh), equivalent to USD 300-305/T CFR Chittagong, Bangladesh.