The Bangladeshi domestic steel (rebar) market has also been under pressure this week amid falling scrap prices and lower offers. The continuous rainfall had a negative impact on construction activities, which led to a price correction by the steel mills.
Major producers in Bangladesh are holding their rebar (10-16 mm) offers at 76,000-78,000 BDT/ton ($886-909/t).
Also, Dhaka-based steel mills have reduced their offers to BDT 71,000-72,000/ton ($827-839/t) on exy basis.
The import scrap market is stagnant
Bangladesh's import scrap market has been quiet this week with limited deals concluded as many steelmakers actively replenished bulk stocks in the last week of November'21. The market is quiet at the moment.
Bulk bids from the USA have dropped, Kanto is awaiting the result of the tender.
Despite the large bulk offers available in the market, no new deals have been made. Suppliers voluntarily submit new offers to steel mills as other bulk buyers such as Vietnam are out of the market. Meanwhile, offers from the US and Japan fell significantly.
A major producer concluded approximately 15,000 tons of Japanese H2 in bulk last week on the basis of $562-563/ton CFR Chittagong.
New indicative offers for H2 grade are reported at $555-560/ton CFR Chittagong, down $10-15/ton.
US bulk offers for chopped and HMS 1&2 (80:20) are heard at $550/ton CFR and $540-545/ton CFR. However, no agreement was heard.
" The monthly Kanto scrap export auction will be held tomorrow. The market is waiting for results for a clear picture," a Japanese scrap trader said. said.
Container market sees fewer deals
The containerized scrap market has been less active this week. However, the offers fell slightly on a weekly basis. Manufacturers seem to have suspended their purchases in anticipation of further price corrections.
Fresh offers for chopped products are at $565-570/ton CFR Chittagong, mostly on a weekly basis.
Around 4,000 tons of HMS in containers from the UK were booked by a steelmaker earlier this week at $535/ton CFR Chittagong.
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