Bangladesh: Rebar offers up on higher input costs; further hike likely

Bangladesh-based major steel mills have raised offers for rebar (10-16 mm) by BDT 1,500/t ($17/t) towards last weekend, sources informed SteelMint. At present, the offers from mills are at BDT 77,000-79,000/t ($900-923/t) exy-Chittagong, which is an increase of $17/t on a weekly basis.

Mills have increased rebar offers following the rise in prices of imported ferrous scrap as well as local scrap. If sources are to be believed, there is room for a further price hike in rebar in the near term.

"Scrap prices are too high for both domestic and overseas markets," said a major steelmaker. Bookings in containers are taking place and also people are waiting for the clear price direction, he added further.

Containerised deals and offers:

• Shredded offers for UK/EU are being quoted at $585-590/t CFR Chittagong, up by $5-10/t w-o-w.
  
  
• In a recent deal, a decent quantity of UK-origin HMS 1&2 (90:10) have been booked at $555/t CFR Chittagong basis. Offers for the HMS 1&2 (80:20) was heard at $555/t CFR basis.
  
  

Bulk scrap market extends silence

Bulk scrap byers extended silence for yet another week as no bulk cargo was heard booked this week. Very limited offers were received from major suppliers. Indicative offers for US-origin shredded is being cited at $590/t CFR Chittagong basis.

Meanwhile, no firm offers were heard for Japanese scrap. Indicative offers for Japanese H2 were heard at $585/t CFR basis.

Domestic scrap prices have also witnessed significant momentum. SteelMint's assessment for shipyard local scrap stands at BDT 54,500/t exy levels, up by BDT 1,000/t ($12/t) w-o-w.

Outlook-
Domestic mills are likely to increase rebar prices further , owing to increased raw material prices, SteelMint understands.