Following a set of transactions to Bangladesh done recently, global scrap suppliers have quickly increased their offers to this destination. Meanwhile, Bangladeshi rebar mills have continued to adapt to increasing prices for feedstock, having passed the increased costs on to end-users. However, the latter have continued to accept new prices reluctantly, citing the ongoing slack demand in the industry.
Accordingly, SteelOrbis has learned of ex-UK bulk HMS I/II 80:20 bulk booking of 35,000 mt HMS at $568/mt CFR, done by one Bangladesh-based rebar mill a week ago, which was in line with the offers voiced by most global scrap suppliers. Meanwhile, this week another producer has managed to get $560/mt CFR for the same-sized cargo. Afterwards, global scrap suppliers are heard to have increased their offers to $575-580/mt CFR. Current offers for shredded scrap have been voiced to Bangladesh at $588/mt CFR, SteelOrbis has learned.
In the meantime, ex-Brazil containerized HMS I/II 80:20 scrap offers have been heard at $545/mt CFR. A mixed cargo of ex-UAE HMS and PNS was offered at $585-590/mt CFR.
At the beginning of the current week, Chittagong-based rebar mills have attempted to increase their offer prices further, although even the previous levels were considered as “crazy” by buyers. On balance, 10-16 mm rebar in Chittagong is currently available at BDT 76,000-79,000/mt ($885-920/mt) ex-works.
$1=BDT 85.854