Bangladesh: Rebar Offers Rally on Proposed Hike in Tax Structure

Medium scale re-rollers in local market of Bangladesh have increased their rebar offers by around BDT 2,000-2,500/MT (USD 24-30) following proposed hike in Tax/VAT structure in recent budget of the country, as per market participants.

As per sources, trade activities have improved and traders/associates are securing orders with consideration of surge in price range in near term.

Further proposed hike in VAT/Tax slab has been opposed by few renowned producers through association/regulatory bodies and requested to exempt escalating portion due to advance payment of specified slab which ultimately Steel Mills have to pay a fix amount whether the revenue will maintained or not.

As per assessment, presently the mid sized mills rebar trade reference prices in Dhaka, Bangladesh is hovering around BDT 61,000-62,000/MT (USD 722-734); increased by BDT 2,500/MT (USD 30) as against last week assessment i.e. BDT 58,500-59,500/MT for 500 W. The prices are ex-works, including local taxes & size 8-32 mm.

However, one of the large mills has kept their rebar offers unchanged against previous week and current offers are at BDT 63,500-64,500/MT (USD 752-764); ex-works, including local taxes & size 8-32 mm.

In line domestic billet prices also moved up by BDT 1,500-2,000/MT (USD 18-24) and reported at around BDT 51,000-52,000/MT (USD 604-616), ex-works in Dhaka.

Falling offers of sponge iron & imported scrap

Indian Sponge iron (DRI) export offers to Bangladesh fell by USD 15-20/MT in a week due to declining prices in Indian domestic market and the current offers for 78-80 Sponge iron lumps is assessed at around USD 300-305/MT CNF Chittagong, Bangladesh.

SteelMint's price assessment for containerized Shredded scrap from North America and Europe stands at USD 330/MT, CFR Chittagong, down by USD 8-10/MT against the last week's report.