Bangladesh: Secondary Mills Rebar Offer Inch Down on Slow Trades

Medium scale mills in Bangladesh have inched down rebar offers amid slow trades. However raw material (melting scrap) prices continue uptrend.

SteelMint's assessment for rebar offers of mid-sized mills in Dhaka, Bangladesh reported at BDT 54,000-55,000/MT (USD 636-648); for 500 W, same against last assessment. Few small mills were heard offering BDT 53,500-54,000/MT. The prices are ex-works, including local taxes & size 10-32 mm.

In context to large scale mills, the rebar offers were reported at around BDT 61,000/MT (USD 719) ex-works Chittagong, including local taxes & size 10-32 mm, as shared by trade sources.

As per participants, demand remained on average basis, however they are assuming that finish steel prices to improve in the coming days as raw material prices are strengthening since a month's time.

Thus to maintain conversion spread (margins), the mills may go for a hike in price range to pass it among consumers. As per assessment made by SteelMint, imported scrap offers to Bangladesh rose by about USD 10/MT in Nov-Dec'19.

Further, rebar prices have not shown signs of improvement yet but medium/small scale mills have increased rebar prices by BDT 500/MT which have been notified among few specified mills.

Meanwhile, the domestic billet offers are assessed at BDT 45,000-45,500/MT (USD 530-536); ex-works in Dhaka.

On an average the deal price for Bangladesh of lumps grade sponge iron assessed at near to USD 269-270/MT CPT Benapole (dry port of India & Bangladesh), which is equivalent to USD 285-288/MT CFR Chittagong, Bangladesh. Few indications were also reported higher by USD 2-3/MT over USD 270/MT, CPT Benapole levels.