Bangladesh: Rebar Trade Volumes Remain Limited

Medium scale re-rollers in Bangladesh have maintained their rebar offers against last week's assessment despite measured demand for finished steel.

As per market participants, finish steel demand has gone down which is ultimately affecting the production level whether considered for large or medium scale mills.

Few industrialists are assuming that falling raw material prices in global market could get minor correction further due to limited exports along with dull sentiments in domestic market.

Limited production level resulted in selling pressure amid appropriate inventory level and internal trade discounts being offered by mills are not sufficient enough as per market's current requirement.

As per SteelMint's assessment, presently the rebar trade prices of the mid-sized mills in Dhaka, Bangladesh is hovering at BDT 57,000-57,500/MT (USD 675-681); for 500 W. The prices are ex-works, including local taxes & size 10-32 mm.

However, few particular medium scale mills have slightly raised their rebar offering by BDT 500-700/MT due to supply in projects and are not willing to sell below to quotations amid adjusted production.

In context to large scale mills, the rebar offers were reported at around BDT 62,000-62,500/MT (USD 734-740) ex-works, Chittagong, including local taxes & size 10-32 mm.

In line, domestic billet offers reported at BDT 45,500-46,000/MT (USD 539-545); ex-works in Dhaka.

Imported Raw Material

Following weak demand & constant drop in global scrap prices in Bangladesh, the major producers in Chittagong have slowed down raw material bookings as minor deals of about 1,000-1,500 MT Indian origin sponge iron (FeM 79-80, 100% lumps) have been reported at price range of USD 277-279/MT CPT Benapole, equivalent to USD 290-295/MT CFR Chittagong, Bangladesh.

Imported scrap trades being slowdown to Bangladesh this week post 2 bulk cargo bookings last week and fresh offers learned at USD 280/MT CFR Chittagong, for containerized Shredded scrap from the UK, Europe and USA.