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Ferrous market update: April 19-23

Ferrous Market Update 04/23/2021

 

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) was virtually unchanged on Thursday on fresh bookings from Venezuela and Russia.
  • An Iskenderun-based mill purchased HMS 1&2 (80:20) at $425/mt cfr from Venezuela on Apr 21. The cargo is due to be shipped in the second half of May or early in June.
  • A second cargo was booked Wednesday by another Iskenderun-based mill that bought 22,000mt of HMS 1&2 (80:20) at $426/mt cfr, 5,000mt of shredded scrap at $436/mt cfr and 6,000mt of bonus material at $436/mt cfr from St Petersburg. The cargo is due to be shipped in the first half of June.
  • Several mills are in negotiations for cargoes so some more deals are expected shortly. Offers were reported at around $430/mt cfr from the Baltic region, while bids remained close to $425/mt cfr. US suppliers are targeting above $430/mt cfr for HMS 1&2 (80:20).
  • Daily domestic spot rebar prices in Turkey rose by TRY80-90/mt ($10-11/mt) on Thursday as the Turkish lira weakened again against the US dollar. Icdas raised its local rebar prices by TRY110/mt.
  • The Turkish market was closed on Friday for the National Sovereignty and Children’s Day holiday. ($1=TRY8.31)

 

Turkey domestic

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey declined by TRY63/mt ($8/mt) on Monday on lower prices for imported material.
  • Purchase prices for shipbreaking scrap in the Izmir region were flat for the third successive week. ($1=TRY8.09)

 

CIS

  • The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap fell by $16/mt fob Baltic Sea and by $25/mt fob Black Sea on Monday amid new transactions.
  • Like suppliers from other countries, Russian ferrous scrap exporters accepted lower prices in sales to Turkey due to oversupply in that market. Offers for the grade were reported at around $435/mt cfr and above early last week, but a deal in St Petersburg was heard at $420-425/mt cfr Turkey for HMS 1&2 (80:20) with Turkish importers planning to achieve a further price decrease this week.
  • In Rostov-on-Don, a deal with another Turkish mill was heard at around $405/mt cfr, while most suppliers were targeting $410-415/mt cfr.
  • The weekly Davis Index for A3 scrap dropped by RUB500/mt ($7/mt) delivered St Petersburg dock on Monday in a bearish export market but remained unchanged in Rostov-on-Don dock. ($1=RUB76.32)

 

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region decreased by €10/mt ($12/mt) on Tuesday following deals at lower prices.
  • Ferrous scrap exporters from the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) dropped collection prices after accepting lower prices in deals with Turkish mills. Early last week, a German supplier sold HMS 1&2 (75:25) at $421/mt cfr, followed by recyclers from the Netherlands selling HMS 1&2 (80:20) at $416-417/mt cfr later in the week.
  • Prices for HMS 1&2 (80:20) are expected to rebound to at least $420/mt cfr Turkey this week as demand for scrap improves in the Turkish market. However, Turkish mills are still targeting $410-415/mt cfr for the grade. (€1=$1.20)

 

UK dockside

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices climbed by £2/mt ($3/mt) delivered dockside, respectively, on Tuesday.
  • UK dockside ferrous scrap purchase prices consolidated around the upper boundary, as merchants found it more challenging to eke out incremental price hikes. The market has lacked direction for the past couple of weeks, amid monthly domestic negotiations and slack export demand from Turkish mills.
  • Davis Index’s Turkish HMS 1&2 (80:20) ferrous scrap import index declined by $10/mt over the past week on April 19. Still, depressed Turkish activity and relatively lower export prices spurred inquiries from India-based buyers.
  • The weekly indices for north and south UK OA (Plate & Structural) edged higher by £1/mt delivered dockside, respectively, during the week. Davis’ weekly north and south UK 5A/5C (frag feed) ferrous scrap indices remained unchanged. (£1=$1.40)

 

Spain 

  • Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices fell by €7/mt ($8/mt) cfr, respectively, on Friday.
  • Spanish ferrous scrap import prices declined over the past week following the conclusion of a sale earlier in the week to around €330/mt cfr northern Spain for HMS 1&2 (80:20).
  • Since that time, however, ferrous scrap benchmarks on major seaborne trade routes have rebounded from recent lows.
  • As a result, the UK and north European-based suppliers have lifted offer prices to Spain in anticipation of further strength in the near term.
  • Davis Index has heard of at least one large UK-based bulk ferrous supplier that has lifted 1&2 dockside purchase prices by £5-10/mt this week. These could transpire into relatively higher shortsea and deepsea export prices within the next week.
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices remained unchanged during the week. (€1 = $1.21)

 

US domestic (May outlook)

  • The early outlook for US May ferrous scrap trading is leaning towards a sideways market, with some upward potential for certain grades depending on the region.
  • Prices, material flow, supply, and demand will remain in balance and are not projected to make any major changes in Q2 2021.
  • Prime grade #1 busheling is still in short supply on the semiconductor chip shortage, which should hold the market up and prevent any price deterioration for other grades. Prime grades are expected to remain unchanged at the lowest end, however, due to limited capacity the grade could see a modest gain.
  • Secondary grades including #1 HMS, P&S 5ft, and shredded are also projected to remain firm with some potential to regain from their declines in April. Scrap volumes and the direction mills take will make an impact, but secondary grades could hold unchanged to possibly up $10-15/gt with some participants expecting that mills should give back the $20/gt lost last month.
  • Mills could require higher volumes of secondary materials including shredded to compensate for the lack of #1 busheling in May. This relates to shredded and #1 busheling’s large spread of $120/gt or more based on region, which may also add price pressure to secondary grades while also placing them in higher demand.
  • Mill order books remain strong with lead times continuing at around nine weeks. Steel prices remain above normal with a spread of $973-986/gt between hot-rolled coil (HRC) and #1 busheling.
  • In Chicago, HRC is at $1,499-1,521/mt ($1,360-1,380nt) fob mill compared to #1 busheling, which is at $550-560/gt. Because of this, a few sources believe prime grades should increase about $20/gt with secondary grades up $40/gt to compensate for all market factors. HRC prices are up $66-88/mt compared to spot prices early in April.
  • Some shredders in the Midwest have raised inbound shredder feed material by $20/nt to generate more flow. However, some of these shredders are reportedly lagging other regions on prices paid for intake material.
  • Rebar prices are reported at $904-948/mt ($820-860/nt) fob mill, up $11-33/mt against late March levels. Rebar fabricators are reporting shortages on-site and difficulty getting loads into shops from mills. While tight spot supply from mills is a factor, the biggest influencer is truck availability and rates that have hiked 20-100pc from December depending upon the lane and whether direct carrier or broker.
  • Turkish export scrap prices increased this week supporting US-origin scrap offers of above $435/mt cfr on HMS1&2 (80:20). Prices on the grade were trading at $430-440/mt cfr early in April but dipped below to $416/mt cfr from Venezuela, which translated to $421-422/mt cfr US-origin. The low Turkish bids along with increased COVID-19 cases in various countries in Asia caused the markets some hesitation.
  • With tight container availability, more bulk buys from both Coasts to destinations in Asia, Latin America, and the Middle East are expected to adequately support export demand in May.

 

US dockside

  • US East Coast dock collection prices for ferrous scrap were flat this week, after slight upticks in the previous week, while dock collections in Houston softened.
  • East Coast dock sales for #1 HMS remained between $335-350/gt on Tuesday with higher and lower adjustments per dock location and prior price point. Freight rates have moderated as some sellers still report lingering deals at $360/gt for the grade.
  • Some price softening is expected due to limited export activity over the past month, though no changes have yet been announced at East Coast docks.
  • The Davis Index for US HMS 1&2 (80:20) exports to Turkey are down $6.85/mt since last week and stand at $420.65/mt cfr on Tuesday compared to $427.50/mt cfr last week on April 13. This compares to $419.17/mt cfr for the export grade on Mar 23.
  • In Boston, the weekly Davis Index for export yard #1 HMS, P&S 5ft and shredder feed remained unchanged delivered Boston dock.
  • The weekly Davis Index for export yard buying prices in New York was flat for #1 HMS, P&S 5ft and shredder feed.
  • In Philadelphia, the Davis Index for export yard collection prices of #1 HMS, P&S 5ft and shredder feed was flat delivered Philadelphia dock.
  • In Houston, the weekly Davis Index moved down by $6/gt for #1 HMS and P&S 5ft decreased by $4/gt delivered Houston dock. Shredder feed fell by $7/gt delivered.
  • Some bulk exporters have recently lowered prices and markets are expected to soften though demand is still present.
  • San Francisco’s export yard indexes fell for #1 HMS by $2/gt delivered, P&S 5ft by $7/gt delivered, and shredder feed by $5/gt delivered.
  • The weekly US West Coast export yard ferrous scrap prices were rangebound on Tuesday in tandem with a sluggish imports market in Turkey with the Davis Index for US-origin HMS 1&2 (80:20) dropping by $6.85/mt to $420.65/mt cfr Turkey over the past week.
  • Domestic buying prices are rising in Asia. Japan increased its scrap export offer prices after Tokyo Steel lifted domestic scrap bids and increased the price on finished steel. Vietnam is encountering improved finished steel demand and is also facing rising domestic scrap prices.
  • Thailand, Malaysia, and China have also raised domestic scrap prices on tight local availability. Bangladesh and Pakistan, however, are showing limited interest in imported scrap amid a holiday but are expected to return as mills are facing low inventories.
  • The Portland weekly Davis Indexes for export yard scrap were flat for #1 HMS, P&S 5ft, and shredder feed.
  • Regional mills in Portland that compete for scrap with exporters are expected to trend sideways to soft-sideways in May ferrous trading. Exports, while showing signs of hesitation due to continued price growth, are anticipated to remain relatively stable given the demand and tight global supplies.
  • In Los Angeles, dock prices trended unchanged this week for #1 HMS, P&S 5ft, and shredder feed. The prospect that export prices will firm up in late April is unlikely. Several buyers noted that Asian mills are likely to wait to bid for scrap until the end of April or early May as import prices may soften.

 

US containers

  • US containerized ferrous scrap prices varied depending on the region on Thursday.
  • The East Coast encountered active inquiries from Indian, Bangladeshi, and Pakistani buyers along with interest from the Far East. P&S 5ft was noted in high demand.
  • A slight softness crept in on the West Coast with potential lower bids into Friday. While prices have not declined much, the low availability of containers and high freight costs are affecting buyers’ desired loading schedules.
  • Asian buyers remain active but are cautious given the uncertainty in some economies on a surge in COVID-19 cases.
  • In New York, the weekly Davis Indexes for #1 busheling rose by $10/mt as HMS 1&2 (80:20) climbed by $8/mt. Shredded continued unchanged for the second successive week, but P&S 5ft rose by $15/mt on high demand.
  • Several participants confirmed P&S 5ft prices were quoted up to $430-435/mt fas on Thursday as buying inquiries rose. Machine turnings rose by $6/mt.
  • The weekly Los Angeles containerized scrap indexes fell up to $7/mt. The index for #1 busheling trended flat, HMS 1&2 (80:20) dropped by $3/mt, P&S 5ft fell by $6/mt, and shredded scrap declined by $7/mt fas.
  • In San Francisco, the weekly indexes lost $2-4/mt with #1 busheling down $4/mt, and HMS 1&2 (80:20), P&S 5ft, and shredded eroding by $2/mt fas, respectively.
  • The Seattle Davis Indexes fell slightly after being mostly rangebound in the previous week with #1 busheling, HMS 1&2 (80:20), and P&S 5ft dropping by $3/mt fas while shredded declined by $1/mt.

 

Mexico

  • Mexico’s domestic ferrous scrap prices increased on strong demand across all three regions on Friday.
  • Prices are expected to increase by MXN200/mt ($10/mt) in Bajío over the next few days, and by MXN100/mt in the Central area, as Deacero, Mexico’s largest steelmaker, continues lifting its purchase prices for scrap. Prices for #1 busheling, especially, are slated to rise further in Mexico following limited availability of the grade and strong demand.
  • Scrap prices in Mexico have risen to levels where mills are finding it cheaper to import scrap compared to sourcing it in the domestic market. Davis Index has heard that a Northern Mexican mill imported P&S 5ft and shredded scrap in the first quarter and saved around 20pc in costs compared to purchasing in the high-priced domestic scrap market.
  • In North Mexico, the weekly Davis Indexes for #1 HMS rose by MXN275/mt delivered, shredded increased by MXN50/mt delivered, machine shop turnings climbed by MXN267/mt, and #1 busheling went up by MXN75/mt. P&S 5ft fell by MXN52/mt delivered.
  • The weekly Davis Indexes in Bajío for #1 busheling and shredded climbed by MXN300/mt delivered to Mexico consumer while #1 HMS rose by MXN200/mt, P&S 5ft climbed by MXN100/mt, and machine shop turnings increased by MXN75/mt delivered.
  • In Central Mexico, the weekly Davis Indexes for #1 HMS, P&S 5ft, and shredded rose by MXN200/mt delivered. Machine shop turnings increased by MXN100/mt and #1 busheling climbed by MXN300/mt delivered. ($1=MXN19.83)
  •  

Japan  

  • Tokyo Steel raised its domestic finished flat steel product prices by JPY5,000-13,000/mt ($46-120/mt) for May deliveries. The EAF-based steelmaker hiked flat steel prices for the second time this month on April 19. Long steel prices remained unchanged. The revision was to align the company’s prices with global trends despite concerns around the resurgence of COVID-19.
  • The mill raised ferrous scrap bids by JPY500-1000/mt ($4.6-9.6/mt) effective April 21, depending on the plant.
  • Shortage of domestic scrap and rising demand boosted prices. Most Asian mills kept bids unchanged while offers went up on rising purchases by Tokyo Steel. The weekly Davis Index for #2 HMS, Wednesday, rose JPY1,375/mt fob. On a fas basis, the index rose by JPY1,833/mt ($17/mt) post-Kansai tender.
  • Strong domestic demand in Japan has reduced offers in the seaborne market. The weekly index for #1 busheling (Shindachi) rose by JPY250/mt fob Japan, while on a fas basis, the index rose by JPY1,000/mt.
  • The indexes for HMS 1&2 (50:50), Wednesday, rose by $4/mt cfr Vietnam and $3/mt cfr Taiwan over the week. ($1=JPY108)

 

South Korea  

  • The weekly Davis Index for Heavy A increased by KRW10,000 ($8.9/mt) del Incheon on Tuesday. Domestic scrap prices rose from last week following a rise in Japan’s export prices. Buyers have replenished stocks and could stay away from the market until prices decline.
  • In the seaborne market, the Davis Index for containerized HMS 1&2 (80:20), Wednesday, declined $3/mt cfr South Korea from the prior week. The index for P&S 5ft, Wednesday, fell $10/mt cfr South Korea, while that for #1 HMS was unchanged from the prior week.
  • With Tokyo steel increasing scrap purchase volumes as well as price, market participants expect South Korean mills to focus on deep-sea cargo.
  • South Korean mills increased bulk purchases for Russian A3 scrap and Hyundai Steel booked #2 HMS at last bid levels. ($1=KRW1,116)

 

Taiwan  

  • The Davis Index for US-origin containerized HMS 1&2 (80:20), Thursday, settled down by $3/mt from April 15 on limited trades. Offers remained high but bids lagged by $5-10/mt.
  • Offers for Japanese HMS 1&2 (50:50) remained unchanged cfr Taiwan. Traders said most mills are yet to raise bids. The weekly Davis indexes for containerized #1 HMS, P&S 5ft fell by $4/mt and $3/mt cfr, respectively, from April 15. The indexes for shredded and #1 busheling remained unchanged amid low demand for higher grade scrap this week.
  • In the domestic market, Feng Hsin raised domestic scrap prices by TWD200/mt and rebar by TWD300/mt on Monday. ($1=TWD28.12)

 

China

  • The weekly Davis Index for the HMS 1&2 (80:20) rose by CNY40/mt del mill. Mills raised bids for imported scrap amid a shortage of domestic scrap.
  • Domestic billet prices rose this week by CNY50/mt($7.7/mt) Increased inquiries from other Asian countries could lift offers further.
  • The index for P&S 5ft (small bulk) cfr China port settled up by $2/mt from the prior week.
  • Stricter emissions restrictions were introduced in the Chinese steel hub of Handan city.
  • Jiangsu Shagang Steel has rolled over its long-finished steel prices for late April deliveries. Except for a few grades of wire rod products which registered a marginal uptick by CNY100/mt ($15/mt) from the prior set of prices effective for mid-April deliveries. ($1=CNY6.5)

 

Vietnam 

  • The weekly Davis Index for domestic HMS 1&2 (80:20) rose by VND19,500/mt delivered South Vietnam inclusive of taxes. Some traders expect bids to rise on improved finished steel demand, shortage of domestic scrap.
  • Bulk HMS 1&2 (80:20) offers from the US West Coast were flat from the week prior. Most mills opted to bid for bulk over containerized scrap due to a shortage of empty boxes at supplier destinations.
  • In the containers market, the weekly index for US-origin HMS 1&2 (80:20), Thursday, fell by $2/mt cfr Vietnam from the prior week. An uptick in freight charges limited trades from USWC during the week. The Davis Index for containerized #1 HMS declined by $2/mt to cfr. The indexes for shredded, P&S 5ft, and #1 busheling fell by $13/mt, $12/mt, and $11/mt, respectively, in a week. Immediate melt requirement was met through short transit scrap from Hong Kong and Singapore.
  • In small bulks, offers for Japanese HMS 1&2 (50:50) rose by $4/mt cfr. ($1=VND23,099)

 

Indonesia

  • The Davis Index for HMS 1&2 (80:20) increased by $5/mt cfr Jakarta. Mills have slowed new imported scrap bookings since mid-April.
  • The weekly index for P&S 5ft remained unchanged from the prior week. The Davis Index for shredded increased by $5/mt cfr Jakarta on Thursday.

 

Thailand

  • The weekly Davis Index for domestic HMS 1&2 (80:20) rose by THB100/mt ($3.2/mt) delivered Rayong mill inclusive of taxes. On Tuesday, deals were heard at THB13,500/mt.
  • Many steel mills avoided imported scrap bookings and preferred domestic material for immediate melt requirements. ($1=THB31)

 

Malaysia 

  • The weekly indexes for HMS 1&2 (80:20) rose by MYR80/mt ($19.4/mt) and MYR100/mt delivered western mills and eastern mills inclusive of taxes, respectively.
  • Malaysia’s 15pc duty on exports of ferrous scrap has raised the landed cost of scrap for buyers at import destinations. ($1=MYR4)

 

India 

  • Imported ferrous scrap demand in India remained subdued amid the COVID-19 cases scaling record high and resulting economic uncertainty. Still, offers rebounded mid-week on strong global cues and elevated container freight charges. Mills booked HMS scrap on a need basis. But fears of production cuts due to diversion of more than 80pc of oxygen production for medical use will keep mills largely silent.
  • Offers for containerized shredded from the UK/EU cfr Nhava Sheva, rose by $5-7/mt from early this week. The Davis Index for containerized shredded was up by $0.25/mt cfr Nhava Sheva from a day ago, but down by $3.5/mt from last Friday.
  • The daily Davis Index for UAE-origin HMS 1&2 (80:20) cfr Nhava Sheva on Friday, up by $3/mt. Amid a drop in domestic scrap prices, Indian buyers resisted offers by Dubai suppliers.
  • The government’s decision to open the vaccination drive for all age groups could improve the situation, supporting steel and raw material prices.
  • The index for US-origin HMS 1&2 (80:20) Friday cfr Nhava Sheva, up by $3.57/mt from the day prior. Suppliers from UK and Australia were bullish amid improved demand in Bangladesh and a few trades in India.
  • On Friday, offers for turning scrap was up by $5-10/mt from a week ago.
  • The indexes for P&S and #1 busheling were down by $4/mt from last week. ($1=Rs74.91)

 

India domestic

  • In Mumbai, the index for HMS 1&2 (80:20) dropped by Rs1,500/mt delivered mill from last Friday amid sluggish finished demand because of stricter lockdown measures imposed in Maharashtra.
  • Steel production has slowed down as oxygen cylinders are diverted for medical use. In Mandi Gobindgarh, the index for HMS 1&2 settled flat from last week.

 

Pakistan  

  • Pakistani steel mills bought limited volumes this week. Sellers turned bullish in the second half of the week, despite weak demand.
  • The daily Davis Index for containerized shredded, Friday, cfr Port Qasim was up $1.5/mt. The index recovered partially after a fall mid-week and settled down $3/mt from the prior Friday. In the coming days, surge in demand is expected as inventories will need restocking.
  • The daily index for US-origin HMS 1&2 (80:20), Friday, rose $2.5/mt cfr Port Qasim from prior week. Offers from most UAE-based sellers bounced back after falling early in the week. Limited operation and transportation hours has impacted supplies.
  • The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled cfr Port Qasim, up by $4/mt from Thursday, while down $6/mt from the prior week. Offers for mixed #1 HMS and P&S from UAE had dropped by $10/mt from prior Friday to recover mid-week.
  • The Davis Indexes for P&S 5ft and #1 busheling settled fell by $3/mt cfr each from prior Friday.
  • In the domestic market, the index for domestic Bala billet rose by PKR500/mt ex-works from last week. The weekly Davis Index for G-60 billet settled unchanged ex-works Punjab.
  • Some stockists have lowered discounts, expecting an improvement in finished steel demand. Long steel producers in Punjab and Karachi kept offers firm, while many small-scale steelmakers have decided to go for annual maintenance amid weak domestic demand. Local rebar offers remained elevated amid a ramp-up in construction activities.
  • The weekly Davis Index for rebar was unchanged ex-works Karachi, while in Punjab it rose by PKR500/mt ex-works.
  • Flat steel product prices remained on an uptrend as producers including Aisha International and Hadeed Steel hiked prices.
  • Driven by high imported scrap offers, the weekly index for Art Q toke scrap equivalent to a mix of HMS and P&S, Friday, settled ex-yard Lahore, up PKR1,000/mt.
  • In Gadani, demolition work has slowed since the start of Ramadan. ($1=PKR153.11)

Bangladesh

  • Imported ferrous scrap trades in Bangladesh have remained slow amid the ongoing lockdown.
  • Demand tapered also due to ongoing Ramadan. Suppliers continued to kept offers firm on bullish steel prices and expectations of active inquiries from Pakistan and other Asian countries.
  • Monsoon season will begin soon after Eid, a time when construction activities take a backseat.
  • The Davis Index for containerized shredded, Friday, was up $3.75/mt from Thursday but unchanged from a week ago. Offers rebound in the latter part of the week following global cues.
  • Large mills have not seen production cuts yet as they have managed to arrange worker’s accommodations and safety needs. Rest small to medium scale mills lowered their production to align with the weak steel demand scenario and the upcoming monsoon season.
  • The index for HMS 1&2 (80:20) from Latin America cfr Chattogram, rose by $4/mt from prior Friday. The daily indexes for US-origin, UK-origin, and Australia-origin containerized HMS 1&2 (80:20) moved up by $2.5/mt, $2/mt and $3/mt on Friday.
  • Offers for premium scrap grades like P&S and busheling moved up by $10-15/mt on limited supply. Declined industrial generation due to shutdown of auto plants kept premium grades in short supply.
  • The weekly index for ship scrap equivalent to P&S was unchanged ex-yards.
  • The weekly index for billet was unchanged from the prior Friday.
  • The index for rebar from medium-scale mills in Dhaka was unchanged ex-works. A few Dhaka-based steel mills raised offers ex-works to match with high offers from the large steelmakers.
  • Small-scale mills continued selling rebar at prices lower by BDT10,000/mt in comparison to the large steelmakers. ($1=BDT84.9)

Metallics

CIS

  • The weekly Davis Index for CIS basic pig iron increased by $5/mt on Thursday amid bullish sentiment and limited material availability.
  • CIS pig iron exporters continued selling small cargoes for distribution and foundries. A Russian supplier sold 10,000mt of the material to Western Europe at $580/mt fob Baltic Sea and 6,000mt to Asia at prices equivalent to $580/mt fob Black Sea.
  • The weekly Davis Index for CIS pig iron in Italy inched up by $1/mt on Thursday. Offers were reported at $590/mt cfr this week, while the most recent transactions were fixed at $585-588/mt cfr to traders.

US

  • The weekly Davis Index for basic pig iron (BPI) ticked up by $3/mt cfr New Orleans port on Friday following higher offers from bullish CIS and Brazilian sellers on renewed demand and fresh deals.
  • The most recent transactions this week from the CIS or Brazil are in the range of $570-575/mt cfr Nola while bids and offers are now between $580-600/mt cfr Nola. Suppliers are offering next shipments at $600/mt cfr Nola, with no support from buyers yet.
  • Prior to this, a cargo of BPI sold from South Brazil last week at $565/mt cfr Nola for discounted high-phosphorus material. Pricing is projected to trend upward by next week, with $580/mt cfr Nola the base level, according to sources.
  • The Davis Index for nodular pig iron (NPI) cfr Nola remains unchanged. The material is in tight supply and current offers entail shipment by July or later. Offers heard for NPI this week remain between $650-680/mt cfr Nola with bid level just under the range.
  • The weekly Davis Index for US hot briquetted iron (HBI) imports ticked up by $5/mt. Offers or bids have not been heard recently however the material’s updated price valuation is based on price movements occurring for similar grades along with most recent consumer interest levels.

India

  • In a week, the index for Sponge iron declined by Rs200/mt del Mumbai, while in Mandi Gobindgarh the index rose by Rs500/mt del mill. Mills opted to procure sponge iron for their melt requirements over scrap amid tight domestic supply.

India semi-finished and finished steel

  • The Davis Index for billet in Raipur, Friday, rose by Rs100/mt ($1.33/mt) from a day ago but declined by Rs800/mt ex-works from a week ago on subdued demand. Billet prices increased for the second day on Friday as mills started raising offers citing a short supply. The index for rebar was unchanged on Friday from a day ago, but down by Rs700/mt from a week ago. Lockdown in many states, including Chhattisgarh has impacted downstream steel demand.
  • In Mumbai, the index for rebar was unchanged for the second day on Friday, but down Rs700/mt ex-works from a week ago. The index for billet rose Rs500/mt from Thursday but fell Rs200/mt from a week ago. Demand for long finished steel remains under pressure with the Maharashtra government announcing a complete lockdown and imposing additional curbs on businesses. Market participants expect the state economy to take a severe hit.
  • In Mandi Gobindgarh, the daily index for ingot rose Rs500/mt. From the prior Friday, the index rose by Rs100/mt ex-works. ($1=Rs74.91)

Shipbreaking 

  • From a week ago, the index for HMS attachments and Melting rose by Rs500/mt ($6.66/mt).
  • Re-rolling scrap prices declined by Rs1500-2,000/mt as mills purchased material only on a need basis. The index for 12Ani declined by Rs2,000/mt ex-Alang in the same period. The index for 14Ani declined by Rs22,00/mt ex-Alang.
  • Due to the stringent lockdown measures demand from the construction sector remained low. The index for 5kg plates declined by Rs900/mt ex-Alang on Friday from a week ago.
  • Shortage of tonnage continued as very few ships beached in April till date. ($1=74.38)

 

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