Bangladesh: Rebar Trade Volumes Fall on Weak Demand

Medium sized re-rollers in Bangladesh have kept their rebar offers unchanged against last week's assessment. However limited buying inquiries amid seasonal slowdown have urged them to offer trade discounts depending upon quantity.

Ongoing monsoon season has slowed down construction activities; this has resulted in low consumption of finished steel and very thin trades observed across regions in the country.

As per industry participants, trade volume may remain restricted due to upcoming Eid festival as well as tight monetary policy from nation’s banking sector which is being hampered, as per trade sources.

Further, few trade participants shared that monthly trade volume has negatively affected and hardly reached on targets considering month on month basis.

As per SteelMint's assessment, presently the rebar trade prices of the mid sized mills in Dhaka, Bangladesh is hovering at BDT 59,000-60,000/MT (USD 694-706); stable against last week assessment for 500 W. The prices are ex-works, including local taxes & size 10-32 mm. However, few trades being placed at BDT 58,000-59,000/MT as well upon considerable quantity.

In context to large scale mills, the rebar offers were reported at around BDT 65,000-66,000/MT (USD 765-776) ex-works, Chittagong, including local taxes & size 10-32 mm. These prices are stable on weekly premises.

Further, domestic billet offers observed stability and reported at BDT 48,500-49,000/MT (USD 571-576); ex-works in Dhaka.

Following weak demand & constant drop in domestic steel prices in Bangladesh, the major producers in Chittagong have slowed down raw material bookings as there are no fresh bookings for sponge iron imports and the offers of Indian origin sponge iron (FeM 79-80, 100% lumps) reported at USD 280-285/MT CFR Chittagong, Bangladesh.