Bangladesh has extended its national lockdown till April 25 and steel mills which were operational until last week, have started idling their furnaces due to demand concerns in the near term.
Domestic demand in the country could take two months at the minimum to recover after the markets reopen.
Bangladesh on Sunday announced a relief package of about $1.7bn for its small scale industries. Its aid to the steel sector, however, is limited.
Mills booked two bulk cargoes for lower-priced Japanese mix scrap this week for their immediate requirements due to a shorter delivery period.
In the container market, the Davis Index for containerised shredded scrap settled at $270/mt cfr Chattogram on Friday, up by $15/mt from $255/mt from the prior week. Early this week, thin trades for containerised shredded were at $265-270/mt cfr Chattogram, though offers then increased to $275-280/mt cfr Chattogram.
The Davis Index for containerised P&S settled at $275/mt cfr Chattogram, up by $15/mt from the prior week. The Davis Index for US-origin containerised HMS 1&2 (80:20) rose to $253/mt cfr Chattogram, from $240/mt the prior week. US suppliers offered containerised HMS 1&2 (80:20) in 40 ft at $260-265/mt cfr Chattogram, but no trades were reported.
The Davis Index for Australian HMS 1&2 (80:20) settled at $260/mt cfr Chattogram, up by $9/mt from the prior week. The Davis Index for Latin American HMS 1&2 (80:20) settled at $255/mt cfr Chattogram, up by $5/mt from the prior week. Brazilian traders raised their offers to $260-265/mt cfr Chattogram.
Bangladesh domestic steel prices drop as trades pause
Major steelmakers incurred heavy losses amid the COVID-19 and resulting shutdowns. Demand for finished steel products remains stagnated with infrastructural projects in the country going on hold. The ban on shipbreaking activity continued creating a shortage of domestic ferrous scrap.
The Davis Index for domestic HMS 1&2 (80:20) settled at BDT27,750/mt inclusive of local taxes ex-yard Chattogram, down by BDT250/mt ($3/mt) from the prior week. The Davis Index for shipbreaking scrap equivalent to P&S settled at BDT28,250/mt ex-yard, down by BDT250/mt ($3/mt) from the prior week.
The Davis Index for rebar from large steelmakers settled at BDT59,000/mt ex-producer, unchanged from the prior week. Steel mills turned worried amid heavy finished steel stocks in hand but no domestic demand in the market.