Bangladesh: Secondary Mills Rebar Offers Remain Stable

Medium scale re-rollers in Bangladesh have kept their rebar offers firm against last week despite slight improvement in demand as against last week, per trade participants.

Also, the large scale mills have kept their rebar offers firm, supported by lower production level & average demand. This in turn maintained inventories with the producers. Although, they are assuming that demand to improve in the coming days, which may soon to support price range.

Further, rebar prices have not shown signs of improvement due to considerably high inventories which have been notified in the past few weeks at large mills premises. This led to increase in trade discounts upon booking quantity as well as negotiation in payment terms.

As per assessment, this week fresh offers of rebar of the mid-sized mills in Dhaka, Bangladesh reported at BDT 54,000-55,000/MT (USD 637-648); for 500 W, same against last assessment. The prices are ex-works, including local taxes & size 10-32 mm.

In context to large scale mills, the rebar offers were reported at around BDT 61,000/MT (USD 719) ex-works Chittagong, including local taxes & size 10-32 mm, as shared by trade sources.

Meanwhile, the domestic billet offers are assessed at BDT 45,500-46,000/MT (USD 536-542); ex-works in Dhaka.

Indian sponge iron import offers to Bangladesh are hovering at USD 270/MT CPT Benapole (dry port of India & Bangladesh), equivalent to USD 285/MT CFR Chittagong, for 79-80 FeM & 100% lumps as per one of the large mills in Bangladesh. However, as per Indian exporters, recent over 5,000 MT sponge iron deals concluded to Bangladesh at an average price of USD 270/MT CPT Benapole.

In line with this, imported scrap offers to Bangladesh assessed for containerized melting scrap HMS 1-2 at around USD 280-285/MT, CFR Chittagong from Australia. The prices are more or less firm amid limited bookings.