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Bangladesh: Mills lower rebar offers in off-season, imported scrap offers rebound

With limited end-user buying interest amid slow construction activities, and heavy rainfall in many parts of Bangladesh, the domestic rebar market has seen a price correc...

Melting Scrap
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29 Jun 2022, 19:14 IST
Bangladesh: Mills lower rebar offers in off-season, imported scrap offers rebound

With limited end-user buying interest amid slow construction activities, and heavy rainfall in many parts of Bangladesh, the domestic rebar market has seen a price correction. Mills have been seen offering discounts to push up sales. SteelMint's assessed prices decreased by BDT 1,500/t w-o-w to BDT 82,500/t exw-Chittagong ($884/t), including VAT.

Bulk scrap offers rebound, no trade deals heard

Imported scrap offers have rebounded after the continuous fall to over 14-months' lows. Major mills have booked sufficient bulk cargoes for July, and August deliveries. Bulk scrap prices have fallen by around $100/t since the beginning of June 2022.

Fresh offers for US-origin bulk shredded cargoes are now at $400/t CFR Chittagong, with no firm deals concluded. Prices had dropped to $380/t CFR levels last weekend.

Container market yet to improve

Secondary mills are still not ready to accept high offers. Meanwhile, the disparity in bids and offers was the key reason that pushed container cargo to the sidelines. Additionally, the upcoming Eid holidays will slow down trade activities.
"Container shortage issues are persisting, which are keeping offers still high," said a scrap buyer.

  • Fresh offers for UK-origin shredded are at $465/t CFR levels, mostly stable w-o-w. But the offers have risen marginally by over $5/t d-o-d.

  • HMS offers from the UK are now at $440-445/t CFR, up by over $20-25/t w-o-w. No major deals have been heard.

  • Local ship-breaking scrap prices have dropped significantly this week. Fresh offers are now at BDT 44,000-45,000/t levels, moving down by around BDT 8,000/t w-o-w. Interestingly, the offers fell sharply to over one-year low.

Outlook: Slow demand from domestic end-users and upcoming Eid holidays are likely to keep market sentiments dull. Particpants feel the market may pick up post-Eid holidays.

 

29 Jun 2022, 19:14 IST

 

 

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