Bangladesh: Medium Scale Mills Lower Rebar Offers

Medium scale re-rollers in Bangladesh have slightly reduced their rebar offers by BDT 500/MT (USD 6) against last week. The offers have come down on account of weak trade volumes due to liquidity crunch, as stated by participants to SteelMint.

However, the large scale mills have kept their rebar offers firm, supported by reduced production by around 30-50%. This in turn maintained inventories with the producers.

Further, the sources in Chittagong who majorly deal with large scale mills cited, poor demand have resulted mills to cut down production by 30-40% and reported sufficient inventory level at their premises.

The fresh offers of rebar through the mid-sized mills in Dhaka, Bangladesh reported at BDT 54,000-54,500/MT (USD 638-644); for 500 W, down by BDT 500/MT (USD 6), W-o-W. 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 60,000-61,000/MT (USD 709-721) ex-works Chittagong, including local taxes & size 10-32 mm shared by trade sources.

Meanwhile the domestic billet offers are assessed at BDT 44,500-45,000/MT (USD 526-532); ex-works in Dhaka.

Coming to price movements in raw materials, the fresh offers of imported busheling scrap to Bangladesh from Japan have reported around USD 295-300/MT, CFR Chittagong.

Indian Sponge iron import offers to Bangladesh are hovering at USD 270-275/MT CFR Chittagong, for 79-80 FeM & 100% lumps. As per one of the large mills in Bangladesh, couple of days back they bought about 2,000 MT Indian origin sponge iron at around USD 268/MT CFR Chittagong.