Posted on 29 Nov 2024
The Bangladeshi imported scrap market remains subdued this week, with limited buyer interest, notes Kallanish.
Prices for Brazil and Australia-origin HMS (80:20) are assessed at $360-370/t, while shredded scrap is priced around $385-390/t cfr Chattogram.
Domestic scrap prices are reported at BDT 49,500-50,000/t ($410-418/t), while rebars in Dhaka are priced at BDT 83,000/t on an ex-works basis.
The sluggish pace of infrastructure projects and weak rebar sales have dampened demand for imported scrap. Steel mills are said to be operating at just 50-55% capacity.
"Bangladesh’s steel production has dropped significantly due to political instability, inflation, and the suspension of government projects. Steelmakers are often selling at a loss. Both the real estate and construction sectors are struggling, and while industry leaders remain hopeful for a recovery, no quick improvements are expected," says a Dhaka -based scrap trader.
Public construction and large-scale government projects, which account for around 70% of local steel demand, have come to a halt since the political transition in August.
Meanwhile, the real estate sector faces ongoing challenges, including high inflation, elevated interest rates, and capital shortages, all of which have further reduced demand for steel and scrap.
With limited demand, currency depreciation, and issues with letters of credit, the outlook for Bangladesh's scrap demand remains weak in the near term.
Source:Kallanish
