Bangladesh: Steel Prices Slump on Poor Inquiries, Falling Scrap Prices
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The local steel prices in Bangladesh slumped by about BDT 2,000/MT (USD 24), as per SteelMint's weekly assessment. The prices continue to fall in line with sluggish domestic demand and falling local ship cutting plate prices which caters almost 40-50% of country's total steel production.
As per a mill owner in Dhaka, currently the local ship cutting plate prices (16mm) are hovering around BDT 40,000-41,000/MT (USD 477-489) which was a week ago close to BDT 43,000/MT (USD 518); down by BDT 2,500/MT (USD 30) in a week on weakening trends.
The current offers for Grade 500 Rebars (12 mm) by small mills in Dhaka are evaluated at BDT 60,000-62,000/MT (USD 723-747) against last week at around BDT 63,000/MT (USD 759); ex-mill. Meanwhile, large mills' offers for rebars are heard at around BDT 67,000-69,000/MT (USD 807-831) ex-works. Most mills have reduced prices by about BDT 2,000-3,000/MT (USD 24-36) in a week.
Local concast billet prices also reported a slump of around BDT 1,000-2,000/MT (USD 12-24) and are currently trading at around BDT 51,000/MT (USD 614). All prices are including local taxes.
As per mill owners, "this week demand remained poor which was earlier expected to improve after the Bangladeshi New year celebrations (14th Apr). Also, due to arrival of monsoon the stockiest kept away from fresh bookings resulting in weakening demand in domestic market, they added."
Imported Scrap buying weak
The potential buyers in Bangladesh remained cautious for fresh global scrap bookings due to higher offers and falling local steel as well scrap prices. Current offers for containerize Shredded grade scrap from UK origin is assessed at around USD 395-400/MT & HMS1 from Brazil at USD 375-385/MT, CFR Chhittagong.
Bulk scrap imports in Bangladesh continue to decline due to higher global scrap prices. As per vessel line up data managed by SteelMint, the country has imported about 0.03 MnT bulk scrap during Mar'18 which fell from 0.08 MnT in Feb'18 and 0.09 MnT reported in Jan'18.
