As scrap supply in Bangladesh remains challenging, accompanied by high prices and the continued shortage of containers in particular, local rebar producers have again attempted to increase their offer prices. However, given that the finished steel market in Bangladesh has failed to see any positive changes so far, end-users are very reluctant to accept any increase in deal prices.
Accordingly, this week Bangladeshi producers have raised their prices for 10-16 mm rebar by around BDT 2,000/mt ($23/mt). As a result of the revision, rebar in Chittagong is officially offered at BDT 75,000-77,000/mt ($874-897/t) EXW, while in Dhaka it is available at BDT 74,000/t ($862/t) EXW, respectively. “The finished market is still very sluggish, with buyers being still very cautious on the back of market movements,” a major trader commented with regard to the current market situation.
Meanwhile, scrap offers to Bangladesh remain at high levels, with some suppliers attempting to increase them further by the end of the current week, on the back of consolidation in deal prices in Turkey. Accordingly, while in the middle of the given period, offers for shredded scrap in containers were voiced at $580/mt CFR, which corresponded to the average price offered by suppliers a week ago, by the end of the current week offers at $590-600/mt CFR have appeared. “The feedback is very low in Bangladesh these days. Most of my listed buyers have been holding their bookings for a long time,” another trader commented. “Overall, everyone is facing the same issue here. It is either the delay of shipments or a cancellation of orders due to a shortage of containers,” he added.
Meanwhile, the containerized HMS I/II 80:20 scrap prices have reportedly increased to $560-565/mt CFR, up $10-15/mt over the past week.
A deal for ex-US bulk HMS I/II 80:20 scrap has been reported at $570/mt CFR. However the information has not been confirmed by the time of publication. Last week, most offers were voiced at $585-590/mt CFR.