Higher rebar offers and a surge in cement prices have weighed down construction activities in Bangladesh. Major mills like BSRM, GPH, KSRM etc have kept their rebar offers firm at BDT 88,000-90,000/t ($1,160-1,187/t) exw. Limited deals were concluded at these prices. Dhaka-based steel mills followed the cue and kept their rebar prices unchanged at BDT 83,000-85,000/t exw ($1,094-1,124/t).
Notably, Bangladesh rebar offers have risen by BDT 5,500/t ($64) in the last one month on the back of higher global scrap prices and demand-supply mismatch. Mills want to push their rebar sales to settle cash considering the month-end.
Prices of other construction materials have increased in the similar range, weighing on end-users demand. Meanwhile, contractors and the government urge steel mills to lower rebar prices but steelmakers do not want to, given the higher raw material prices.
The market may remain quiet for the next 15-20 days on Ramadan holidays.
Imported scrap trade in containers continues, bulk trade silent
Bangladesh's imported scrap trade remained slow on increased prices, and the approaching Ramadan month. Hence, there is no sign of offer prices coming down for at least the next couple of months. On the other hand, suppliers are not in a mood to sell their material at a low price and are likely to raise prices further for April/May shipments.
UK-origin shredded in containers is now being quoted at $670-680/t CFR Chittagong. A small quantity has been booked at these levels.
Recently, around 3,000 t of UK-origin HMS have been booked at $650-655/t CFR Chittagong.
On the other hand, bulk scrap buyers are also quiet after the last deal reported a week ago. Suppliers are yet to actively offer bulk cargo but price indications for bulk US HMS cargo are at $720-725/t CFR Chittagong.
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