Bangladesh: Rebar offers soften on slow end-user demand

• Mills lower rebar offers by BDT 2,000 ($23/t) w-o-w
  
  
• Containerised scrap trade sustains
  
  
• Two more bulk scrap vessels booked from US last week
  
  

With limited end-user buying interest amid slow construction activities, the Bangladeshi domestic rebar market has seen a price correction. Major players are heard offering a discount in rebar of around BDT 2,000/t to entice buying. SteelMint's assessed prices decreased by BDT 2,000/t w-o-w to BDT 86,000/t exw-Chittagong ($998/t), including VAT.

Dhaka-based mills are willing to restock but opted for a wait-and-watch mode as key mills lowered their offers. Currently, rebar is being offered at BDT 78,000-80,000/t ($905-929/t) exw, down by BDT 2,000-3,000/t w-o-w.

Imported scrap trade silent

Imported scrap trade cooled down after bookings happened in small quantities for meeting urgent needs of mills in the previous week. Due to the ongoing Ramadan month, business activities slowed down and mills have already well booked in advance.

• Fresh offers for containerised shredded scrap cargo are at $670/t CFR levels, down by $10-15/t w-o-w.
  
  
• UK-origin HMS is being offered at $630/t CFR Chittagong levels, a significant drop of $20-25/t w-o-w. However, 3,000 t of HMS (80:20) from West Indies was bought at $610/t, CFR Bangladesh, in the begnning of the week.
  
  

"Buyers are not ready to accept high rates of imported scrap and choosing domestic scrap over imported. Also, the upcoming holidays in Bangladesh may lead to pessimistic sentiments." said a reliable source.

Bulk scrap trade from US reported, Japan silent

The most-awaited Japan's monthly Kanto scrap export tender was concluded yesterday, April 2022. A total of 10,000 tonnes (t) of scrap was awarded and the average price for H2 material stood at around JPY 67,010/t ($534/t) FAS, higher by JPY 3,500/t ($28/t) m-o-m. But Bangladesh's buyers stayed out of the bulk market after March shipments as US-origin cargos are more cost-effective.

Recently, two bulk mixed scrap (HMS & shredded) cargos were booked at around $665/t, CFR Bangladesh last week. On the other hand, bulk US-origin HMS is being quoted at $655-660/t CFR Chittagong basis.

Outlook
The Islamic holy month of Ramadan is likely to dampen demand further in the near term. Mills are largely booked for May shipments of imported scrap. Thus, mills may be less active in booking imported scrap next week.