Ferrous market update: April 5-9

Ferrous Market Update 04/09/2021

 

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) declined by $1.45/mt on Friday on a sale from Canada.
  • An Iskenderun-based mill purchased 35,000mt of HMS 1&2 (95:5) and 15,000mt of shredded scrap at an average price of $436/mt cfr from Canada. The supplier has potentially sold one more cargo to Turkey, but no details were available at the time of publication.
  • Turkish mills continue to seek scrap cargoes amid healthy steel product sales but have pushed back on higher prices. Suppliers who offered cargoes at heavy melt price levels of $435/mt cfr and higher have not yet seen those levels materialize. Bids were heard at no higher than $430/mt cfr for premium quality HMS 1&2 (80:20) on Friday. 
  • Several suppliers have offered material in a bid to secure sales ahead of the Ramadan holidays and Turkish mills are confident they will be able to secure their requirement without having to drive up prices.
  • Daily domestic spot rebar prices in Turkey were flat on Friday. Domestic rebar sales remained slow, while billets sales picked up. Several cargoes of semis traded at around $585/mt ex-works in Iskenderun. ($1=TRY8.17)

 

Turkey domestic

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey increased by TRY212/mt ($26/mt) on Monday on improving demand in the domestic market.
  • Purchase prices for shipbreaking scrap in the Izmir region remained unchanged over a week, but they are expected to follow the general uptrend in the market in the near term. ($1=TRY8.11)

 

CIS

  • The weekly Davis Indexes for HMS 1&2 (80:20) or A3 scrap in the Baltic Sea and the Black Sea regions of Russia were flat on Monday due to the lack of trading.
  • No deals were reported though ferrous scrap demand improved in Turkey, with suppliers from St Petersburg offering HMS 1&2 (80:20) at $430-435/mt cfr not finding any takers as buyers preferred to pay around $420/mt cfr for the same grade from the EU. Still, Russian exporters believe that their price targets are achievable this week, considering rebar prices in Turkey at $620-630/mt ex-works and in the same price range for exports along with active sales to Asia last week.
  • Most suppliers from Rostov-on-Don preferred to hold off negotiations with Turkish mills last week amid limited availability of the material and anticipation of higher prices this week.
  • The weekly Davis Index for A3 scrap declined by RUB325/mt ($4/mt) in St Petersburg dock on Monday and remained unchanged in Rostov-on-Don dock. ($1=RUB76.46) 

 

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region increased by €4/mt ($5/mt) on Tuesday in a revived export market.
  • Collection prices for ferrous scrap rose in the Netherlands and Belgium after suppliers closed deals to Turkey at higher prices in the range of $417.25-421/mt cfr for European-origin HMS 1&2 (80:20), last week.
  • European exporters are targeting $425/mt cfr Turkey for HMS 1&2 (75:25) and $430/mt cfr for HMS 1&2 (80:20) in anticipation of bookings continuing this week. Suppliers are also bullish due to the slow inflow of material to the docks. (€1=$1.18)

 

UK dockside

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices edged up by £2/mt ($3/mt) delivered dockside on Tuesday.
  • UK’s dockside ferrous scrap prices consolidated at the higher end of their range over the past week, taking positive cues from a marginal firming in major seaborne benchmarks.
  • Over the past week, Davis Index’s Turkish HMS 1&2 (80:20) ferrous scrap import benchmark nudged $2/mt higher cfr Turkey on Apr 5.
  • Trade in the UK has been comparatively lethargic as the market waits on a firm direction from negotiations with deepsea buyers. At the same time, domestic monthly mill-yard negotiations have also diverted attention away from dockside trade for the first 10 days of the month. A UK-based merchant noted that one large local smelter had opened negotiations down £5/mt compared with March’s levels.
  • The weekly indices for north and south UK OA (Plate & Structural) climbed by £5/mt delivered dockside during the week and north and south UK 5A/5C (frag feed) ferrous scrap indices were unchanged. (£1=$1.38)

 

Spain 

  • Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices climbed by €14/mt ($17/mt) cfr on Friday.
  • The Spanish ferrous scrap import index has climbed over the past week in response to firmer European and UK dockside rates and major seaborne benchmarks.
  • Davis Index’s Turkish HMS 1&2 (80:20) ferrous scrap import index has climbed more than $14/mt over the past eight working days.
  • That said, some UK shortsea small bulk ferrous scrap suppliers have preferred to sell transshipment coasters to northern Europe instead of Spain given the hindrance of “killer” freight rates.
  • Shortsea small bulk coaster freight rates remain around €30-35/mt, with some UK suppliers opting to only offer on a fob basis to avoid the “headaches” of fixing vessels.
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices increased by €10-12.50/mt fob, respectively, during the week. (€1=$1.19)

 

US domestic

  • The April ferrous scrap trade that commenced Monday continued concluded on Friday with most markets following the trend that started in Detroit carrying no price change for primes and $20/gt declines for secondary grades such as #1 HMS, P&S 5ft, and shredded. 
  • East Coast markets such as Philadelphia settled quickly on Tuesday with prime grade #1 busheling remaining unchanged compared to March settled prices. Secondary grades including #1 HMS and P&S 5ft fell by $19/gt and $20/gt delivered, respectively, while other obsolete grades such as machine shop turnings moved down by $20-50/gt.
  • In Pittsburgh #1 busheling softened slightly, falling by $5/gt delivered while #1 HMS declined by $21/gt with deals encompassing $395-410/gt. Machine shop turnings dropped and P&S 5ft fell by $23/gt and $20/gt delivered Pittsburgh consumer, respectively.
  • Detroit primes were flat with #1 busheling transacting at wide price ranges of $540-595/gt based on prior starting point from March. The index for #1 HMS dropped by $21/gt delivered Detroit consumer with the full scope of deals between $370-390/gt.
  • The monthly Davis Index for # 1 busheling remained unchanged delivered Chicago consumer while #1 HMS, P&S 5ft, and machine shop turnings moved down by $20/gt, $21/gt, and $28/gt delivered, respectively.
  • The market was described as slightly improved in the Cincinnati/Indianapolis region on strong mill demand in some sections near Indianapolis with price strength extending into some of Chicago’s and Detroit’s later transactions.
  • In Chicago, where the current spread between #1 busheling and shredded has reached $121/gt compared to the average historical gap closer to $30/gt, demand may lessen next month on upcoming outages, though there was enough this week to pull some material from the Indiana corridor also affecting supply in the Cincinnati/Indianapolis market.
  • The Davis Indexes in Birmingham for #1 busheling decreased by $2/gt delivered as #1 HMS and P&S 3ft fell by $19/gt. P&S 5ft and shredded both declined by $21/gt delivered. Machine shop turnings slipped by $23/gt. Birmingham and Carolinas areas held the price decline on turnings at about $20/gt, while some regions decreased their price by $25-30/gt.
  • In Cleveland, #1 busheling remained sideways. The monthly Davis Index for #1 busheling remained flat, while #1 HMS, P&S 5ft. and shredded dropped by $20/gt delivered.
  • Prime grade #1 busheling transacted at $535-560/gt delivered Cincinnati/Indianapolis consumer. A large portion of P&S 5ft sold at $400-415/gt in the region, with some deals as high as $435/gt.
  • In the Carolinas, the market was also called at minus $20/gt on secondary grades against March settled prices, but probing deeper into transactions, obsolete indexes decreased by a little more than initially expected. The #1 busheling index decreased by $1/gt delivered and #1 HMS dropped by $25/gt. P&S 5ft, shredded, and machine turnings fell by $26/gt, $22/gt, and $27/gt delivered, respectively.
  • Texas scrap sales have been completed by some market participants while others are calling it undecided. Some market participants report drops of $20-40/gt on secondary grades against March settled numbers depending on the distance. 
  • Several large dealers reported doing very little in the way of transactions by Friday afternoon. Some pricing updates indicate deeper cuts accepted by sellers to fulfill transactions. Mills were making offers of down $20/gt when last month they negated the national gains of $45-50/gt in the region. Some speculate the offers were low due to the low need for inventories.
  • Market participants’ early outlook detects fewer price movements anticipated for May with prime strength continuing. The latest basic pig iron US import offers from the CIS are flat to up $20/mt at $570-590/mt cfr Nola on tight supply. The material has been in higher demand throughout March and sold as a prime grade replacement as #1 busheling has faded on the continuing semiconductor shortage along with its impacts on the auto industry.

 

US dockside

  • US East Coast and Houston dock collection prices for ferrous scrap trended sideways for the third successive week. Dockside prices are in line with rangebound export prices along with slow export activity over the past month.
  • Dockside activity was quiet on Tuesday with no new price announcements coming from bulk exporters as coastal activity was overshadowed by the domestic ferrous trade that kicked off on Monday with secondary grades falling by $20/gt in the Midwest and domestic East Coast transactions following the trend.
  • East Coast dock sales for #1 HMS were transacting in the full range of $315-340/gt on Tuesday like last week, with remote material priced at the top of the scale. The material is largely transacting closer to $335-340/gt in Philadelphia, with transactions in New York at the mid- to low-range and deals in Boston at the low-end of the scale.
  • The Davis Index for US HMS 1&2 (80:20) exports to Turkey inched up by $3.25/mt over last week on Tuesday compared to Mar 30. Price levels are climbing as Turkish mills plan to book cargoes for May and June shipment.
  • In Boston, the weekly Davis Index for export yard #1 HMS moved down by $2/gt and remained unchanged for P&S 5ft delivered Boston dock. Shredder feed ticked down by $3/gt delivered Boston export yard. 
  • The weekly Davis Index for export yard buying prices in New York decreased by $3/gt for #1 HMS delivered and by $5/gt for P&S 5ft and shredder feed. 
  • In Philadelphia, the Davis Index for export yard collection prices ticked up by $3/gt and $2/gt delivered for #1 and P&S 5ft, respectively. Shredder feed fell by $2/gt delivered. 
  • Houston’s weekly Davis Indexes moved up by $3/gt and $2/gt for #1 HMS and P&S 5ft, respectively, while shredder feed fell by $3/gt delivered. The region has shifted focus from export to domestic trading.
  • US West Coast export yard ferrous scrap prices moved down in Portland and were rangebound in Los Angeles and San Francisco on Tuesday. Export scrap prices may increase in early April as export scrap inquiries rise and dock prices move up. 
  • Global activity such as Asian mills seeking bulk and higher dock prices in the UK are supporting higher ferrous scrap price expectations and deals from the US in early April. 
  • India’s domestic ferrous scrap prices are rising on tight inventories and higher iron ore prices. Indian buyers actively purchased steel over the past week after having retracted inquiries earlier despite the rising COVID-19 infections in the country that might affect demand and result in a price correction. 
  • Domestic ferrous scrap prices are also rising in South Korea, Malaysia, Taiwan, Thailand, and Vietnam. One large South Korean firm is expected to actively bid for Japanese and Russian scrap this week. Due to limited volumes from those destinations, mills could turn to US sources to complete their buying plan, further supporting US export bulk prices. Chinese mills are also increasing prices on finished steel, which may push them to increase domestic scrap prices from the present flat trend. 
  • Bangladesh and Pakistan are expected to return to imported scrap deals after the holiday with a preference for bulk over containers. 
  • Japanese export offers have increased in cfr terms due to an increase in freight rates but offer prices are also firming up with rising inquiries. 
  • The weekly Davis Indexes for export yard scrap in Portland decreased for #1 HMS by $8/gt delivered, shredder feed by $7/gt delivered, and P&S 5ft by $9/gt delivered. 
  • Participants in Portland were expecting regional mills to decrease prices on shredded and #1 HMS grades by $10-15/gt in April but received offers with a price erosion of $20-25/gt against March settled prices. The lower prices received some resistance, and most grades dropped by $20/gt. 
  • In Los Angeles, dock prices have publicly remained unchanged over the past two weeks, but some market participants received a premium on higher load transactions. #1 HMS and P&S 5ft were flat while shredder feed increased by $7/gt delivered. Export dock prices fell in March and regional docks are expected to firm up prices in April with the uptrend in export scrap both in bulk and containers. 
  • San Francisco’s export yard indexes rose slightly with #1 HMS increasing by $1/gt delivered while P&S 5ft and shredder feed rose by $2/gt delivered.

 

US containers

  • The US containerized ferrous scrap market increased for the second successive week in most markets on Thursday. Containerized deals remain affected by low availability of containers and high freight costs.
  • Rising import bulk scrap prices in Turkey are buoying the global ferrous market’s sentiments. India, Bangladesh, Pakistan, Taiwan, and other emerging markets are actively making scrap inquiries for the purchase of imported scrap planned for May and June shipments amid tightening domestic supplies. 
  • Some participants believe that buyers will want to continue securing loads prior to any price increases while others expect buyers to hesitate next week due to potential economic slowdowns amid new COVID-19 restrictions in some regions where infections have risen. 
  • Given the expectation of a strong US domestic ferrous market in May that may trade sideways to only slightly lower on seasonal effect, sellers are likely to remain firm on offers both in bulk and containers. Some buyers are expected to book bulk in the next few weeks due to the container shortage. 
  • In New York, the weekly Davis Indexes for containerized scrap increased for #1 busheling by $10/mt fas, for shredded by $11/mt, for P&S 5ft by $5/mt fas, for HMS 1&2 (80:20) by $4/mt and for machine turnings by $2/mt fas.
  • The weekly Los Angeles containerized scrap indexes rose for #1 busheling, HMS 1&2 (80:20), P&S 5ft, and shredded by $6/mt, $10/mt, $7/mt, and $9/mt fas, respectively. 
  •  In San Francisco, the weekly indexes gained as Asian buyers returned on a buying spree since prices did not seem to be going down as expected. The index for #1 busheling climbed by $10/mt fas, HMS 1&2 (80:20) rose by $9/mt, P&S 5ft climbed by $7/mt, and shredded rose by only $5/mt fas. 
  • The Seattle Davis Indexes trended unchanged for #1 busheling, HMS 1&2 (80:20), P&S 5ft, and shredded. 
  • On the West Coast, some participants are rumored to be negotiating forward deals at or above $380/mt fas on HMS 1&2 (80:20) with a key factor being container access.

 

Mexico

  • Mexico’s domestic ferrous scrap prices increased on strong demand in the North and the Central regions on Friday.
  • Prices in Central and Bajío are expected to rise by MXN300/mt next week as Deacero, Mexico’s largest steelmaker plans to continue lifting its purchase prices for scrap.
  • Mexican mills are mulling importing scrap from the US as prices for some scrap grades in Mexico are higher than the US domestic prices after Detroit mills dropped secondary grades prices by $20/gt this week.
  • In North Mexico, the weekly Davis Indexes for #1 HMS, P&S 5ft, shredded, machine shop turnings, and #1 busheling rose by MXN84/mt, MXN50/mt, MXN16/mt, MXN175/mt, and MXN119/mt delivered Mexico consumer, respectively.
  • In Central Mexico, the weekly Davis Indexes for #1 HMS, P&S 5ft, shredded and #1 busheling rose by MXN350/mt delivered Mexico consumer, respectively. Machine shop turnings rose by MXN50/mt to MXN8,650/mt delivered.
  • The weekly Davis Indexes in Bajío for #1 HMS fell by MXN300/mt delivered, shredded dropped by MXN670/mt, and machine shop turnings declined by MXN495/mt delivered. The indexes for P&S 5ft rose by MXN225/mt delivered, and #1 busheling climbed by MXN450/mt. ($1=MXN20.16)

 

Japan  

  • Japan’s monthly Kanto Tetsugen scrap tender concluded on Friday, April 9 with a single winning bid fetching 20,000mt #2 HMS at JPY43,380/mt ($396.96/mt) fas Tokyo bay, up JPY404/mt or $4/mt from last month’s average of JPY42,976/mt fas Tokyo bay. Industry sources told Davis Index that the total volume in four shipments of 5,000mt each would be supplied to Vietnamese consumers latest by May.
  • During the week, Japanese exporters raised ferrous scrap offers on strong global cues. Most suppliers are waiting for higher bids from Asian steel mills this week post-Kanto tender. The weekly index for #2 HMS rose JPY1,458/mt ($13.3/mt) fob with traders raising offers to JPY43,000-44,000/mt fob after Korean mills bought at JPY41,500/mt fob this week. On a fas basis, the index rose by JPY1,625/mt fas. 
  • The Japanese yen depreciated to JPY109.35 against the US dollar from 108.2 levels a month earlier. Depreciation of the yen tends to support ferrous scrap exports and more deals are expected in the coming days.
  • Tokyo steel bids remained flat this week, while suppliers anticipate a rise of JPY1,000-2,000/mt soon due to short supply and increased demand from China and other South Asian countries.
  • The index for P&S 5ft (small bulk) China port rose $9/mt from the prior week on rising offers. Offers for HS or P&S rose to $495-505/mt cfr China while bids rose to $485-490/mt cfr on Wednesday. Production cuts in China lifted steel prices to a decade’s high, while the price of 62pc Fe iron ore rose $5.5/mt to around $171/mt on Wednesday on recovering demand.
  • Offers for Japanese #1 busheling (Shindachi) rose by over JPY2,000-3,000/mt due to a shortage of scrap and strong global cues. Freight charges have remained high resulting in costlier imports for overseas buyers. The weekly index for the grade rose by JPY2,500/mt fob Japan, while on a fas basis, the index rose by JPY2,000/mt fas. Offers rose to JPY46,000-47,000/mt fas, while bids were still lower by JPY1,000-1,500/mt fas on Wednesday.
  • The weekly Davis indices for HS and shredded, Wednesday rose JPY2,000/mt fas and JPY2,125/mt fas, respectively. Limited trades heard as most mills adopted a wait and watch strategy due to high volatility.
  • Offers for HMS 1&2 (50:50), Wednesday, rose by $5-10/mt cfr from the prior week with the index for the grade up $2/mt cfr on global cues.
  • The index for Japanese HMS 1&2 (50:50) rose by $10/mt cfr Taiwan. Traders indicate prices are supported by rising Chinese steel and iron ore futures. Most offers rose by $10/mt from the prior week. ($1=JPY109.50)

 

South Korea  

  • South Korean mills raised domestic scrap bids by KRW10,000-20,000/mt ($9-18/mt) on Tuesday. Major steel mills were negotiating for bulk deals from Australia, Russia and the US instead of containerised to avoid delays.
  • The weekly Davis Index for domestic Heavy A rose by KRW10,000/mt and by KRW20,000/mt delivered Incheon and Pohang, respectively. Mills have raised new bookings due to low inventory, said traders.
  • The weekly Davis Index for domestic Light A rose by KRW20,000/mt delivered Pohang mill. With the current rise in buying prices in Turkey and China, mills are expected to remain cautious and closely watch purchases by other Asian countries.
  • Limited containerised bookings heard from South Korean mills following a rise in imported scrap prices to Taiwan and a shortage of containers at the USWC. Leading steelmakers bought bulk cargoes last week and are negotiating for more shipments amid tight domestic scrap supply. Traders opine mills could announce bids for Japanese scrap late this week, while few mills concluded deals at JPY41,500/mt ($378/mt) fob on Monday, offers rose to JPY43,000-44,000/mt fob.
  • The Davis Index for containerized HMS 1&2 (80:20), Wednesday, rose by $19/mt from the prior week cfr South Korea with few deals heard. Bids rose by $10-20/mt cfr South Korea, with offers rising to $425/mt. Traders indicated that offers for Taiwan and South Korea were similar due to supply constraints and higher freight rates. 
  • The Davis Indexes for P&S 5ft and #1 HMS, Wednesday, rose by $26/mt and $15/mt cfr South Korea, respectively, from the prior week. The index for shredded rose $25/mt from the prior week. ($1=KRW1,121)

 

Taiwan  

  • Imported ferrous scrap prices rose in Asia amid restocking by mills. Bullish global cues, higher freight charges and upcoming Ramadan break in Malaysia, Indonesia, and other destinations supported the price rise.
  • The daily Davis Index for US-origin containerized HMS 1&2 (80:20), Friday, settled flat with bids rising to $415-420/mt cfr Taiwan and offers rising to $425-430/mt. US-based exporters are expected to raise offers further on container shortage and higher freight rates. Brisk buying by Turkish mills is also lifting offers. The index rose by $15/mt from the prior Thursday (April 1).
  • Offers for Japanese HMS 1&2 (50:50) rose by $10/mt cfr Taiwan while bids were at $435/mt cfr. Traders said most mills are yet to raise bid and are cautious of rising scrap prices in the international markets.
  • On a weekly basis, the Davis Indexes for containerized #1 HMS, shredded, P&S 5ft and #1 busheling rose by $18/mt, $24/mt, $21/mt and $19/mt cfr, respectively, from April 1. 
  • Mills are cautiously watching Turkish and Chinese buying trends. Traders anticipate a $10/mt cfr rise next week. Early in the week, mills awaited Kanto tender results slowing negotiations for Japanese scrap.
  • Taiwanese mills raised bids after return from the Qingming festival holidays. Most yards are expecting a further rise this week as many mills are low on inventory.
  • The weekly Davis Indexes for domestic HMS 1&2 (80:20) rose by TWD200/mt ($7/mt) delivered South Taiwan and North Taiwan mills, respectively. Feng Hsin raised domestic scrap bids by TWD200/mt on Tuesday while kept rebar offers flat at TWD18,400/mt ex-works.
  • Few offers for HMS 1&2 (70:30) from Central America in FEU, Tuesday, heard up $5-10/mt cfr from the prior week. Taiwanese importers indicated that domestic scrap is still cheaper than imports, but supply remains tight. ($1=TWD28.50)

 

China

  • In China, Jiangsu Shagang Group lifted prices of long and flat finished steel products by CNY100-300/mt ($15-46/mt) for early April deliveries amid stable raw material prices. The hike also comes in line with China’s top economic council reiterating the resolve to lower crude steel output in 2021. 
  • Production cuts lifted steel prices to a decade’s high in China. Prices of 62pc Fe iron ore rose by $5.5/mt to around $171/mt on Wednesday on recovering demand. With bullish steel, coal and iron ore futures and stricter production curbs, market participants expect good demand for ferrous scrap in the coming days. 
  • Mills could also focus on importing billets to fulfil domestic and international finished steel demand. Production restrictions and rising demand for finished steel pushed domestic billet prices to a 12.5 year high of CNY4,960/mt($756/mt) ex-mill, up CNY180/mt from the prior week.
  • The weekly Davis Index for the HMS 1&2 (80:20) remained unchanged at CNY3,425/mt ($523/mt) delivered mill from the prior week. Bids for imported scrap rose following the limited availability of domestic scrap. ($1=CNY6.6)

 

Vietnam 

  • The weekly Davis Index for domestic HMS 1&2 (80:20) rose by VND215,000/mt ($9/mt) delivered South Vietnam inclusive of taxes. Some traders expect bids to rise further on improved finished steel demand and higher raw material prices, globally. 
  • Bulk HMS 1&2 (80:20) offers from the US West Coast rose by $10-15/mt from the week prior. Most mills opted to bid for bulk over containerised due to a shortage of empty boxes at supplier destinations. 
  • A few deals for busheling in the domestic market were at VND9,700,000/mt delivered South Vietnam on Tuesday. A European company sold a cargo for heavy melt at $455/mt cfr Vietnam and shredded at $460/mt. While a US exporter sold shredded at $465/mt cfr Vietnam.
  • Mills are cautiously checking Chinese and Turkish purchases ahead of Ramadan. 
  • In the containers market, the weekly index for US-origin HMS 1&2 (80:20), Thursday, rose by $15/mt cfr Vietnam from the prior week. Mills bids $15/mt higher, but traders raised offers to $435-440/mt cfr in TEU containers citing higher freight charges and positive global cues.
  • Mills anticipate a rise in demand for HRC and rebars in the export markets and this could increase scrap purchases to ramp production.
  • On a weekly basis, the Davis Indexes for containerized #1 HMS, shredded, P&S 5ft and #1 busheling rose by $15/mt, $21/mt, $25/mt and $21/mt, respectively, from March 25. Hong Kong oversized P&S deals heard at $453/mt cfr in TEU, while in bulk, a deal heard at $469/mt cfr this week.
  • In small bulks, offers for Japanese #2 HMS rose $10/mt cfr after some deals at $445/mt cfr prior week. Some mills paused bookings ahead of the Kanto tender on Friday. ($1=VND23,169)

 

Indonesia

  • The Davis Index for HMS 1&2 (80:20) settled up $11/mt cfr from the week prior on Thursday. After Easter, Indonesian mills have been slow in purchasing scrap and are exercising caution amid rising scrap prices and freight rates. Bids chased limited offers this week. Offers for Australian HMS 1 and 2 (80:20) heard at $430-440/mt cfr on Thursday.
  • Mills raised bids ahead of Ramadan to restock inventory. Traders indicated mills could increase purchases as billet exports from Indonesia and Malaysia to China rose after deals for 30,000mt heard at $660/mt cfr. 
  • The weekly indexes for P&S 5ft and shredded rose by $11/mt each cfr Jakarta. Offers for Australia and the UK-origin P&S 5ft rose $20-25/mt cfr, while bids were at $450/mt cfr. 
  • Deals for domestic busheling heard at $470/mt delivered Jakarta mill amid a tight supply of high-grade scrap.
  • Imports from Malaysia remained paused following the announcement of a 15pc export duty on ferrous scrap.

 

Thailand

  • The weekly Davis Index for domestic HMS 1&2 (80:20) rose by THB300/mt ($9.6/mt) to delivered Rayong mill inclusive of taxes. Deals reported at THB12,800-13,000/mt delivered mill. Mills raised procurement for domestic scrap amid imported scrap shortage and rising freight.
  • A leading exporter in the US confirmed that a Thailand-based steelmaker may buy higher volumes amid a shortage of raw material from Australia and other nearby regions. 
  • Deals for domestic P&S 5ft heard above THB13,500-13,800/mt on Tuesday, with mills preferring domestic scrap or imported billets. Deals for billets heard at $640-650/mt cfr Thailand on Tuesday. Demand, however, has been limited as buyers decided to wait for more clarity on the price direction. ($1=THB31.4)

 

Malaysia 

  • The weekly indexes for HMS 1&2 (80:20) rose MYR20/mt delivered western mills and eastern mills inclusive of taxes, respectively. Offers for domestic P&S 5ft at MYR1,850-1,880/mt delivered mill on Tuesday.
  • Malaysia has imposed a 15pc duty on exports of ferrous scrap. Through this duty, the government aims to restrict ferrous scrap exports and secure material for domestic producers. This could lower the country’s dependency on imports, while many traders expect higher demand for domestic scrap in the coming weeks, thereby spiking bids.
  • Few offers for US-origin HMS 1&2 (80:20) in FEU rose $10-15/mt from the prior week on global cues. Steel mills preferred domestic scrap as it remained competitively priced against imports. ($1=MYR4)

 

India 

  • Demand for imported ferrous scrap in India is impacted by 11 major states seeing a massive spike in COVID-19 infections. Varying degree of restrictions are in place in many cities and high-risk areas which could slow down economic activities in the coming days. 
  • Migrant labourers are rushing to their hometowns to avoid inconveniences if the government imposes stringent lockdown like last year. Construction activities and small-scale industries have started experiencing labour crunch despite assurances from the government that manufacturing and industrial activities will not be stalled.
  • Scrap buyers preferred short delivery or high seas cargoes, while trading in long delivery periods remained almost paused. Most importers have adopted a wait and watch stance to gain more clarity on the domestic situation. 
  • Steel prices, globally, are charting new highs and could move further amid production curbs in China. Flat steel prices in India hit an all-time high after leading primary mills hiked prices in April. If demand sustains, there could be another round of price hikes as Indian mills look to fill the void created by the reduction in Chinese exports.
  • The daily Davis Index for UAE-origin HMS 1&2 (80:20), Friday, settled stable cfr Nhava Sheva. The index rose by $8/mt from the prior Friday. Buyers competed to secure UAE origin scrap where supply is known to tighten during Ramadan.
  • Offers for turning scrap cfr Nhava Sheva rose by $10/mt from a week ago. A few deals for West African HMS for 20-21mt loading with CI-GI reported by sponge consumers in Goa. From a week ago, the indexes for P&S and #1 busheling cfr Nhava Sheva, up by $10/mt.
  • High offers pushed the Davis Index for containerized shredded to a month’s high. The index for US-origin HMS 1&2 (80:20) cfr Nhava Sheva rose $10/mt from prior Friday. 
  • In Mumbai, rebar prices remained unchanged since Monday on suspended demand. Mills offered discounts of up to Rs1,000/mt. Weekend lockdown in Maharashtra is likely to impact rebar sales, thereby lowering demand for imported scrap. 
  • In China, mills expect steel prices to trend up on sustained demand. The production curbs in Tangshan, kept spot imported iron ore 62pc ferrous content prices rangebound at $172-173/mt cfr North China. Domestic billet prices on Friday dropped by CNY20/mt to CNY5,040/mt ($768/mt) ex-Tangshan, including 13pc VAT. Indian mills also focused on exports, targeting billets at $615-625/mt fob India. ($1=Rs74.28)

 

India domestic

  • In Mumbai, the index for HMS 1&2 (80:20) rose Rs500/mt delivered mill from last Friday amid a local shortage of scrap and higher import prices. Suppliers resisted lower bid on strong global cues. 
  • The finished steel demand remained tepid following mini lockdowns and restrictions to control the spread of COVID-19 infections in major cities and high-risk zones. 
  • In Mandi Gobindgarh, the index for HMS 1&2 (80:20) dropped by Rs200/mt delivered mill from the prior week amid restriction imposed by the state government.

 

Pakistan  

  • Pakistani imported ferrous scrap offers remained firm, but trades were slow amid limited supply and non-availability of containers. A few mills restocked ferrous scrap in hopes of another round of infrastructure push and cash infusion through the fiscal budget.
  • Major trades were suspended ahead of Ramadan as new restrictions have been put in place due to the resurgence of COVID-19 infections. Usually, activities peak after the Eid holidays. 
  • The Davis Index for containerized shredded, Friday, cfr Port Qasim up $0.36/mt from Thursday. The index rose by $7.5/mt over the week. Resumption in bulk trades pushed offers up in South Asia both in containers and bulk cargo. 
  • The daily index for US-origin HMS 1&2 (80:20), Friday, was unchanged from Thursday but rose $10/mt cfr Port Qasim from the prior week. Stable domestic demand in the US and European markets reduced export offers to South Asia. 
  • Mills were largely inclined to purchase UAE-origin HMS on a short delivery period. Offers for mixed #1 HMS and P&S from UAE rose $10/mt from the prior week depending on quality. 
  • The Davis Indexes for P&S 5ft and #1 busheling rose $12/mt and $8/mt cfr Port Qasim, respectively, from the prior Friday. Scaling back of auto production due to a shortage of semiconductors could impact the generation of prime grade scrap.
  • Limited availability of imported scrap offers amid shipping line issues raised domestic scrap trades. Prices for Art Q toke scrap equivalent to a mix of HMS and P&S and Pure Q toke scrap equivalent to shredded remained unchanged ex-yards Lahore. 
  • In Gadani, demolition work slowed after intense activity during the past 10 days. Recyclers resisted scrapped vessels or container carrier deals at high prices ahead of Ramadan.
  • HRC producers announced price hikes for April shipments amid strong international prices and bullish auto demand. 
  • On Friday, the Bala billet index fell PKR500/mt ex-works Lahore from the prior week. The Davis Index for G-60 billet fell PKR1,000/mt ex-works Punjab. 
  • Trades for rebar remained comparatively slow at higher prices. The weekly Davis Index for rebar dropped PKR500/mt ex-works Karachi, while in Punjab, the index decreased by PKR500/mt. ($1=PKR153.21)

 

Bangladesh

  • Imported containerized ferrous scrap bookings in Bangladesh paused amid a weeklong lockdown to control the resurgence of COVID-19. The daily Davis Index for containerized shredded, Friday, cfr Chattogram, rose by $8.75/mt from the prior week amid thin trades. 
  • In the bulk market, three deals in the prior week boosted offer prices, while a rise in Kanto tender bids, Friday, lifted Japanese small bulk offers.
  • US and Latin American yards preferred to sell in the domestic market as Bangladeshi bids turned unattractive. Yards held asking prices firm amid tight vessel space. The daily index for HMS 1&2 (80:20) from Latin America rose $10/mt cfr Chattogram. The indices for US-origin, UK-origin, and Australia-origin containerized HMS 1&2 (80:20) rose $5/mt cfr Chattogram, respectively. 
  • Trades for premium scrap grades like P&S and Busheling were thin on limited offers and tightened industrial generation due to the shutdown of auto plants. The Davis indexes for P&S and #1 busheling, Friday, rose $9/mt and $7/mt, respectively, from the prior week. 
  • Increased demand for domestic scrap and bullish global cues pushed the weekly index for ship scrap equivalent to P&S and HMS 1&2 (80:20) up by BDT1,250/mt ex-yards. 
  • Billet offers surged on high scrap prices, despite slow demand. The weekly index for billet rose by BDT5,375/mt ex-works from the prior Friday. 
  • Large steelmakers like BSRM, AKS, GPH, and KSRM raised their asking rates for rebar by BDT500-1000/mt. The index for large steelmakers’ rebar, Friday, increased by BDT1,125/mt ex-works. Large mills cancelled discounts to maintain the spread between scrap and rebar.
  • Prices of 16mm ship plate ex-yards remained unchanged. The imported scrapped vessel offers crossed $500-510/ldt cnf Chattogram limiting purchases and slowing demolition rates. ($1=BDT84.5)

 

Metallics

 

US/CIS

  • The weekly Davis Index for basic pig iron (BPI) ticked up by $7/mt cfr New Orleans port on Friday as import offer prices rose on bullish supplier sentiment. This positive outlook also lifted the weekly Davis Index for CIS BPI by $4/mt fob Black Sea.
  • Offers for BPI from the CIS are stronger rose to $570-590/mt cfr Nola with one producer offering the material at $650/mt cfr Nola on limited availability. However, this level was rejected by US buyers.
  • A tightening market for prime scrap supply is also expected to boost US pig iron imports in the near term. Prime scrap grades held firm on pricing in the US domestic ferrous market this month, unchanged against March settled prices with no near-term correction expected.
  • The most recent BPI transactions in the US were reported earlier this week from Southern Brazil at around $540-555/mt cfr Nola for high-phosphorus, lower grade material and a spot pig iron trade by barge was reported out of the Nola port at $575/mt late last week.
  • A large Turkish steelmaker also purchased 30,000mt of pig iron from Brazil at $555/mt cfr during the week. Turkish importers are opting for alternative routes after CIS exporters raised offers to $550-570/mt fob Black Sea with a Russian supplier who is sold out until the second half of June offering the material at as high as $620/mt fob.
  • The Davis Index for nodular pig iron (NPI) imports remained unchanged at Nola. The material is in tight supply and current offers entail shipment only by July. Offers heard for NPI this week remain between $650-680/mt cfr Nola with bid level just under the range.
  • For US hot briquetted iron (HBI) imports stayed flat with no new offers or bids heard for the material. The price is based on current market prices for similar grades and price points sellers are willing to trade at given current consumer interest.
  • In Italy, the weekly Davis Index for CIS pig iron remained unchanged on Friday in a quiet market. Italian mills are considering lower priced alternatives such as ferrous scrap imports after the gap between scrap and pig iron increased to more than $130/mt this week

 

India

  • Higher iron ore prices supported Sponge iron prices this week. The indexes for Sponge iron rose Rs100/mt del Mumbai and Rs600/mt del Mandi Gobindgarh mill.

India semi-finished and finished steel

  • Weekend curfew in the state of Maharashtra is expected to dampen semi-finished sales in April. The daily Davis Index for billet in Mumbai drops by Rs1,200/mt ($16/mt) from the prior week on limited buying interest by the re-roller due to moderate rebar sales. The index for rebar remained unchanged during the week on lesser consumption of rebar in the region.
  • In Jalna, Maharashtra, the bi-weekly index for billet fell by Rs1,000/mt ex-works on Thursday from the prior week. 
  • In Raipur, the daily index for billet fell Rs1,400/mt ($19/mt) ex-works from the previous Friday as demand dampened following the announcement of a 10-day lockdown in the city starting April 9. The daily index for rebar fell Rs1,000/mt ($13/mt) on lower sales. 
  • In Mandi Gobindgarh, the daily index for ingot drops by Rs1,000/mt ex-works from the prior week due to a fall in local scrap prices. ($1=Rs74.74) 

 

Shipbreaking 

  • Shipbreaking rolling scrap prices rose this week amid a shortage of tonnage. Many yards are operating with fewer workers due to fear of COVID-19 and restrictions hindering the movement of people. Gas cutting activity slowed in a few yards due to a short supply of oxygen cylinders. The government has started diverting industrial oxygen for medical use amid increased hospitalizations due to COVID-19.
  • The index for 14Ani, Friday, rose by Rs1,000/mt ($13.3/mt) ex-Alang from Monday, while the index for 8Ani rose Rs1,000/mt in the same period.
  • Demand from the construction and auto sectors remained firm pushing ship plate prices up. The index for 2kg plates, Friday, rose Rs1,200/mt ex-Alang from Monday.
  • As local mills are buying on a need basis the index for HMS attachments and Melting declined by Rs200/mt ex-Alang in the same period.
  • After a gap of two months, a cruise ship MV Columbus with a total tonnage of 29,058ldt was bought at $414/ldt. The vessel is yet to be beached and is at Alang’s outer anchorage currently.
  • ($1=Rs74.6)

 

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