The domestic market in Bangladesh showed signs of recovery amid an increase in finished steel prices. A few buyers bought imported scrap in containers at higher prices for immediate needs, while bulk scrap buyers stayed away from the market due to higher freight rates.
In the bulk market, offers for US West Coast-origin HMS 1&2 (80:20) Monday were around $330-335/mt cfr Chattogram with limited buying interest. Buyers are expected to resume trades this week if finished steel prices show signs of recovery.
The Davis Index for containerized shredded, Monday, settled at $344.42/mt cfr Chattogram, up by $2.63/mt from Friday. Buyers booked containers of shredded from Europe at $342/mt cfr Chattogram and from the UK-origin at $345/mt cfr pushing offers to above $350/mt cfr Bangladesh on Monday. A few mills were hoping to book shredded at around $340/mt cfr Chattogram from South America and Australia.
The weekly Davis Index for containerized US-origin HMS 1&2 (80:20) Monday settled at $326.29/mt cfr Chattogram up by $1.29/mt from the prior week. As deals were limited due to the longer delivery period, the index did not move sharply despite offers at $330-335/mt cfr Chattogram.
After a long gap, Brazilian suppliers and traders resumed offers to Bangladesh. Brazilian suppliers had reduced trades with Bangladesh amid robust domestic demand. The daily index for Latin America-origin HMS 1&2 (80:20) settled at $320/mt cfr Chattogram up by $1/mt from Friday, while offers were at $325/mt cfr Chattogram for HMS 1&2 (80:20). Containerized HMS #1 offers from Brazil jumped by $5-7/mt on Monday to $328-330/mt cfr Chattogram from the prior week.
In the domestic market, many steelmakers are concerned by the government’s move to focus on a stricter collection of VAT. This could lead to higher input costs for many steel producers and force them to increase steel prices further.
Another cause of concern for small scale producers was that many large-scale rebar makers have not raised their rebar offers amid subdued demand. Despite expectations of a BDT1,000/mt rise, they preferred to wait for a picks up in demand.
On Monday, domestic billet offers were at BDT42,000-42,500/mt ex-works Chattogram up by BDT500/mt. Some steelmakers in Chattogram sold billets at BDT42,000-42,500/mt ex-works Chattogram.
A few mid-sized mills were able to sell rebar at BDT52,000-53,000/mt ex-works Chattogram, up BDT500/mt amid high input costs due to scrap supply shortage. Large steel producers like BSRM and AKS are still offering rebar at BDT56,000-57,000/mt ex-works.
Domestic shipbreaking scrap equivalent to P&S traded flat on Monday at BDT32,500-33,000/mt ex-yard Chattogram.
($1= BDT84.93)