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Ferrous market update: February 1-5

Ferrous Market Update 02/05/2021

 

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) remained unchanged on Friday in a mixed market.
  • Three ferrous scrap bookings with significant differences in prices were reported to the market. A supplier from the UK sold HMS 1&2 (80:20) at $399/mt cfr and shredded scrap at $404/mt cfr to an Izmir-based mill, while another exporter from the UK closed a deal with an Iskenderun-based mill at $387/mt cfr for HMS 1&2 (80:20). Both UK deals were reportedly booked on Thursday. In a third deal, a Marmara-based mill purchased HMS 1&2 (80:20) at $380/mt cfr and bonus material at $390/mt cfr from Poland.
  • Shortly after these deals were announced most suppliers and traders said that the prevailing market level for US-quality heavy melt was still at around $395-400/mt cfr Turkey. Demand has strengthened on the back of fresh billet and rebar sales and suppliers are confident their market has bottomed. 
  • Still, a few mill buyers suggested they would continue pushing for $380-385/mt cfr for US heavy melt and market participants feel the deal-making will likely hit a standstill if the current buyer versus seller positions hold.
  • The mixed sentiment for deep-sea cargoes spilled into the Azov-Black Sea basin on Friday. Some mills insisted on lower prices for short-sea cargoes with bids at $376/mt cfr for HMS 1&2 (80:20) from Romania, while others bid at $400-402/mt cfr for A3 material from Russia (Rostov-on-Don).
  • Rebar sales continued upward momentum in the Turkish domestic market and daily spot prices increased by TRY90/mt ($13/mt) on Friday. Turkish mills in Marmara, Izmir, and Iskenderun regions have sold multiple orders of 5,000-15,000mt of rebar on several days this week.
  • The daily export rebar price in Turkey remained unchanged on Friday. ($1=TRY7.07)

 

Turkey domestic

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) decreased by TRY206/mt ($29/mt) on Monday as mills continued cutting their purchase prices amid a downtrend in rebar pricing.
  • Purchase prices for shipbreaking scrap in the Izmir region decreased by $30/mt as bearish sentiment prevailed. ($1=TRY7.18)

 

CIS

  • The weekly Davis Index for A3 scrap dropped by $21/mt fob Baltic Sea basin and by $24/mt fob Black Sea basin on Monday in a weak export market.
  • There were no ferrous scrap sales reported from Russia to Turkey at the end of January as importers insisted on lower rates due to falling steel product prices. Bids at lower prices were firm after buyers achieved lower prices for US material in several transactions. 
  • Russian cargoes for foreign destinations are limited because of slow ferrous scrap collections and a rise in export duty to a minimum of €45/mt. Some suppliers are hopeful that Turkish importers will resume purchases later in the week.
  • In the meantime, a seller from Far East Russia closed a deal with a South Korean producer at $391/mt cfr for a cargo of A3 material.
  • Russian dock collection prices diverged depending on the region. The weekly Davis Index for A3 scrap decreased by RUB675/mt ($9/mt) delivered St Petersburg dock on Monday but increased by RUB900/mt ($12/mt) delivered Rostov-on-Don dock. ($1 = RUB76.10) 

 

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region decreased by €15/mt ($18/mt) on Tuesday amid challenging export sales.
  • Most exporters from the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) reduced ferrous scrap collection prices further due to stagnant demand. Turkish importers, especially, showed minimal interest in scrap bookings due to sluggish orders for rebar.
  • Negotiations are slow in the European export scrap market at present with neither firm offers, nor bids reported. Most European suppliers are preferring to wait for the next deal to get more clarity on pricing outlook, which remains varied for now. (€1 = $1.20)

 

UK dockside

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices both fell by £3-6/mt ($4-8/mt) delivered dockside.
  • Dockside purchase prices in the UK extended recent declines as some bulk processors attempted to reduce the flow of material into their yards. In fact, one UK-based bulk exporter commented that they had dropped dockside rates given that their yards were “almost completely full.”
  • Other dockside collectors partially reflected recent weakness in major seaborne export prices over the past week, with Turkish HMS 1&2 (80:20) import prices falling by $40/mt since Jan 26.
  • The weekly index for north UK OA (Plate & Structural) declined by £5/mt over the same period to £240/mt, respectively, delivered dockside on Feb 2.
  • Davis’ north and south UK 5A/5C (frag feed) ferrous scrap indices declined by £7-13/mt delivered dockside over the past week. (£1 = $1.37)

 

Spain

  • Davis Index’s weekly northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices fell by €15/mt ($18/mt) cfr on Friday.
  • Spanish ferrous scrap buyers were heard to have completely pulled their bids this week, while the UK and North European sellers dropped HMS 1&2 (80:20) offer prices by €5/mt.
  • This was insufficient to spark any interest or purchasing activity, given that local prices of equivalent grades (E3) are trading at €285/mt delivered mill.
  • A Spanish trader commented that there was currently no price or market for imports and that some suppliers in the Basque Country (northern Spain) were able to sell to Turkey.
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices declined by €5/mt fob on Feb 5. (€1 = $1.20)

 

Spain domestic

  • Davis Index’s monthly Spanish consumer ferrous scrap indices plunged by €60-70/mt ($72-84/mt) delivered depending on grade following the conclusion of mill-yard negotiations in early February.
  •  Domestic ferrous scrap benchmarks have similarly tracked developments in major seaborne trade routes, particularly to Turkey, over the past month.
  • Davis Index’s Turkish HMS 1&2 (80:20) ferrous scrap import index plummeted $83.75/mt since Jan 4 to $397.50/mt, cfr Turkey, on Feb 4.
  • According to the latest trade data, Spanish ferrous scrap exports jumped 48pc and 80pc to 110,586mt and 88,187mt in October and November 2020, respectively. (€ = $1.20)

 

US domestic

  • US domestic ferrous scrap trading wrapped up within a day of starting in the Midwest and East Coast markets on Feb 5, with drops of $50-60/gt depending on grade, against January settled prices.
  •  Turnings was the only grade to see some variation in secondary grade prices, which settled down $50/gt. Shredded prices moved down by $60/gt against January settled prices, while #1 bundles and other prime grades remained unchanged. 
  •  Secondary grades encountered an oversupply of scrap, especially shredded, after the flow increased in January. Busheling though remained in tight supply amid strong demand that compounded the increased spread. 
  • The monthly Davis Index in Chicago remained flat for #1 bundles. The index ticked down for #1 busheling by $4/gt delivered, #1 HMS by $55/gt delivered, P&S 5ft by $56/gt delivered, and shredded by $61/gt delivered. The index for machine shop turnings decreased by $50/gt delivered Chicago region.
  •  In Detroit, P&S 5ft sold easily at $380/gt while #1 busheling and #1 bundles were flat. #1 HMS dropped as low as $320/gt but some sales took place as high as $360/gt delivered.
  • Shredded is selling as low as $385/gt in Pittsburgh, though some sales were closer to $400/gt delivered. In Philadelphia too, P&S 5ft moved down to $350-365/gt with primes remaining unchanged.
  • Some scrap dealers in the South and Southeast reported selling out their inventories while others expect to trade into Monday. In the Dallas region, for example, mills bid at $50/gt below January settled numbers across secondary grades. 
  • Unlike the Midwest, shredded, structural, and heavy melt traded in tandem. Some sellers closed at bid levels, but others opted to offer at prices down only $30/gt from January hoping for improved pricing as mills are still seeking scrap. 
  • According to some dealers, the upward push is unlikely due to the weaker competition from export. The Carolinas mostly settled at prices down $50/gt across all secondary grades including shredded. #1 busheling traded at unchanged prices against January settled across the South and Southeast.

 

US dockside

  • US East Coast and Houston dock collection prices for ferrous scrap trended down for the third straight week, falling by about $30/gt, in line with declining export prices and lowered price estimations in the domestic market.
  • Export prices to Turkey from the US for HMS 1&2 (80:20) have consistently fallen since the first week of January and decreased by $16.05/mt in one week to $398.75/mt cfr on Tuesday. Prices in Turkey have dropped by $83.36/mt since their peak of $482.11/mt cfr on Jan 11.
  • Export yard buying prices for #1 HMS on the East Coast are averaging near $310-315/gt, with some export yards asking as low as $300-305/gt for local tons on Tuesday. Price drops tally at around $25-30/gt or more for most sellers since last week and involve a full range of deals between $300-330/gt. 
  • Industry participants believe additional declines may ensue later this week, though sellers reporting from the lower end of the price range do not foresee further, near-term price adjustments. East Coast dockside values have fallen by around $90/gt since Jan 12 when #1 HMS was at $404/gt delivered Philadelphia.
  • In Boston, the weekly Davis Index for export yard #1 HMS, P&S 5ft, and shredded fell by $29/gt, $30/gt, and $33/gt delivered Boston export yard, respectively. 
  • Shredder feed was transacting as low as $200/gt delivered East Coast dock for new deals on Tuesday. Some sellers assert they are retaining material in hopes of new, improved pricing after February’s lowered-prospect trade concludes.
  • The weekly Davis Index for export yard buying prices in New York moved down by $28/gt delivered for #1 HMS $29/gt delivered dock for P&S 5ft and $35/gt delivered for shredder feed. 
  • In Philadelphia, the Davis Index dropped for #1 HMS by $29/gt delivered, P&S 5ft by $30/gt delivered, and for shredder feed by $32/gt delivered.
  • In Houston, the weekly Davis Index decreased for #1 HMS, and P&S 5ft by $19/gt delivered, and for shredder feed by $24/gt delivered.
  • Export yard ferrous scrap prices on the West Coast declined across all ports. Contracts that guaranteed incoming flows saw some scrap sellers striking deals at early January levels while others had to absorb lower buying prices. 
  • Though some dock buyers referenced drops of $90/gt and others thought declines at around $70/gt were warranted based on recent market trends, dock price declines have averaged $30-50/gt depending on buyers, volume loads, and the overall need to fill vessel commitments in February. 
  • In Los Angeles, docks announced another round of $20/gt drops across all grades at the end of last week for some sellers and proceeded to make the pricing effective to additional sellers early this week. The #1 HMS grade more effectively reflected the lower buying price while P&S 5ft resisted the new decline through the week. 
  • An additional decline of $20/gt may be announced as containers and bulk scrap deals continue declining in the export market, though some market participants believe that the market may begin climbing again after China returns to active scrap import buys after Feb 22. 
  • Asian buyers are quiet, and news of the latest South Korean bulk buy at substantially lower prices from the US West Coast is keeping export sellers focused on filling pre-sold orders. 
  • Japanese export scrap offers are being reported at decreases of about $10/mt from a week ago and domestic mills have reduced domestic scrap buying prices. With the main buyers in Taiwan, South Korea, and Vietnam likely to seek scrap at reduced bidding prices, US export prices will remain under pressure at least for the next few weeks. 
  • In Portland, the index for #1 HMS dropped by $13/gt, P&S 5ft fell by $12/gt delivered, and shredder feed decreased by $18/gt delivered. 
  • While prices declined, docks have ensured feedstock with some sellers guaranteeing 50-90pc of the output towards docks instead of domestic mills. 
  • The San Francisco weekly Davis Indexes declined for the third consecutive week on Tuesday and encountered wide buying ranges as some sellers retained January pricing and others adjusted to the latest market conditions. #1 HMS, P&S ft, and shredder feed dropped by $7/gt, $10/gt, and by $9/gt delivered, respectively. 
  • The weekly Davis Indexes in Los Angeles trended down for #1 HMS by $20/gt, P&S 5ft by $13/gt, and shredder feed by $28/gt delivered, respectively, as docks focused on prepared scrap selections. 
     

US containers

  • US containerized ferrous scrap prices trended down for the fourth consecutive week on both coasts. However, on the East Coast – prices began to inch up in the middle of the week, even though they registered a week-over-week decline at the index level.  
  • Some East Coast buyers made unmatched bids on shredded at $340-350/mt fas during the week and on Thursday, increased them to $370/mt fas for some sellers, while others closed deals at $375-380/mt fas.  
  • Japanese ferrous export offers seem to have bottomed out. Sellers believe most US markets will reach a trough next week before facing renewed interest from Asian buyers towards the end of the month. Some US West Coast sellers have opted to keep offers high despite limited sales potential, in anticipation of a demand surge at the end of the month.  
  • The weekly Davis Indexes in New York fell by $11-20/mt fas against a range of $10-18/mt fas last week, except machine turnings, which had larger fluctuations. 
  • The index for #1 busheling declined by $15/mt, HMS 1&2 (80:20) slipped by $20/mt, and P&S 5ft and shredded both fell by $11/mt fas. Machine shop turnings dropped by $23/mt as it encountered a narrower spread against HMS 1&2 (80:20).  
  • In Los Angeles, the weekly Davis Indexes dropped for #1 busheling by $33/mt, HMS 1&2 (80:20) by $23/mt, P&S 5ft by $27/mt, and shredded by $25/mt fas.  
  • Some containers became available for several large buyers who proceeded to book containerized loads after a few months of tight availability. Freight costs are noted anywhere between $30-50/mt now. LA-based deals for HMS 1&2 (80:20) were noted between $310-325/mt on Thursday, with the most common contract expectations at $315-320/mt fas.  
  • In San Francisco, the indexes declined by $35/mt for #1 busheling and by $28/mt for HMS 1&2 (80:20). Both P&S 5ft and shredded decreased by $25/mt fas. 
  • The Davis Indexes in Seattle also dropped for #1 busheling by $22/mt, HMS 1&2 (80:20) by $21/mt, P&S 5ft by $17/mt, and shredded by $18/mt. 
     

Mexico

  • Mexico’s domestic ferrous scrap prices decreased across North, Bajío, and Central in tandem with the price declines in the initial monthly trade in the US domestic ferrous scrap market, which began on Feb 4.
  • Prices in Mexico may continue falling in February, in a range, which like the US domestic market, is anticipated to decline by $30-50/mt for #1 HMS and shredded and by $10/mt for #1 busheling, according to market participants.
  • In Central Mexico, the weekly Davis Indexes for #1 HMS, P&S 5ft, shredded, machine shop turnings, and #1 busheling fell by MXN250/mt delivered Mexico consumer.
  • In Bajío, the weekly Davis Indexes for #1 HMS, P&S 5ft, shredded, machine shop turnings, and #1 busheling, fell by MXN375/mt, MXN387/mt, MXN100/mt MXN300/mt, and MXN150/mt delivered, respectively.
  • In North Mexico, the weekly Davis Indexes for #1 HMS, P&S 5ft, shredded, machine shop turnings, and #1 busheling fell by MXN135/mt, MXN45/mt, MXN130/mt, MXN130/mt, and MXN65/mt delivered, respectively.

 

Japan  

  • Sluggish finished steel demand in Asian markets pressured importers to further reduce bids for Japanese ferrous scrap by JPY1,200-1500/mt ($11-14/mt) in the earlier part of the week with many exporters refusing to sell at those bids. 
  • Steel demand is weak amid renewed lockdowns and nearing Lunar New Year holidays. Domestic ferrous scrap prices also declined this week with Tokyo Steel reducing prices on Tuesday. Tokyo Steel lowered #2 HMS purchase prices by JPY500/mt del plant Tahara and JPY1,000/mt for three steel plants while bids for deliveries to Utsunomiya remained unchanged. Amid power shortage and reduction in steel demand in Japan, prices are expected to fall further this week. 
  • Traders focused on exports to reduce inventory as power shortage throughout the week forced production cuts in many industries including steel. Sellers are cautious of exporting to China due to delays at ports caused by documentation and quality issues in previous Japanese scrap shipments amid new grading standards implemented by Chinese authorities.
  • The index for P&S 5ft (small bulk) China port settled down $50/mt cfr from the prior week on Wednesday but offers and bids rose on Thursday in anticipation of strong demand for finished steel post-holidays. The weekly Davis Index for Japanese #2 HMS fell by JPY1,200/mt fas, while the index for the grade on a fob basis fell by JPY1,250/mt fob Japan on Wednesday with prices unchanged from the prior Thursday after Hyundai and Dongkuk bids.
  • Bids for Japanese #1 busheling (Shindachi) fell by JPY1,350/mt fob from a week ago. The weekly index for the grade fell by JPY1,225/mt fas Japan. South Korean Hyundai steel purchased 30,000 mt bulk scrap from Russia and 45,000 mt of mix grades from the US for March shipments. Traders anticipate low bids till the holidays due to high inventory in South Korea, Vietnam, and Taiwan. 
  • The weekly Davis Index for HS and shredded, Wednesday, fell by JPY1,550/mt and JPY1,375/mt fas, respectively. Bids for HS and shredded were down by JPY1,000/mt fas from the prior week.
  • Offers for HMS 1&2 (50:50) fell by $30-35/mt cfr Vietnam this week, and the index for the grade fell by $30/mt cfr Haiphong.
  • Buyers from Vietnam, Korea, and Taiwan have either paused trades or continue to negotiate with Japanese exporters amid a bearish sentiment in Asian ferrous scrap markets. The decline in Japanese scrap prices could be short-lived, opined few market participants, as they expect prices to rise in February amid a global shortage of scrap and increased finished steel demand after the Chinese Lunar New Year holidays. ($1=JPY105)

 

South Korea  

  • Prices of containerized imported ferrous scrap fell amid slow finished steel demand. Also, a switch to bulk buying from the US, Russia, and Japan due to container shortage lowered containerized scrap purchases. Many steel mills are under annual maintenance and are expected to resume scrap buying after the Lunar New Year holidays. 
  • The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, settled down by $19/mt cfr from the prior week.
  • The weekly Davis Indexes for P&S 5ft and #1 HMS, Wednesday, dropped by $20/mt and $19/mt cfr South Korea, respectively. The index for shredded fell by $26/mt cfr from the prior week. 
  • South Korean Hyundai steel purchased 30,000mt bulk scrap from Russia and 45,000mt of mix grades from the US for March shipments. 
  • Bids for Japanese #2 HMS were down by JPY1,500/mt from the prior week. 
  • South Korean domestic ferrous scrap prices trended down this week. Suppliers reduced offer prices to match lower bids placed by mills. 
  • The Davis Index for domestic Heavy A fell by KRW10,000/mt ($9/mt) and KRW20,000/mt delivered Incheon and Pohang, respectively. Mills could reduce their bids for domestic scrap next week amid scheduled maintenance. Most mills have enough inventory for the month. 
  • The weekly Davis Index for domestic Light A fell by KRW22,000/mt delivered Pohang mill. ($1=KRW1,123)

 

Taiwan  

  • Asian buyers lowered imported ferrous scrap bids amid sluggish finished steel demand, cold weather, and rising COVID-19 cases. 
  • The Davis Index for containerized US-origin HMS 1&2 (80:20), Thursday, fell by $5/mt from Jan 28 as buyers reduced purchases from the US and focused on negotiating Japanese scrap.
  • Japanese exporters refused to negotiate at lower prices and raised offers by JPY1,000-1,500/mt ($9.52-14.28/mt) on Thursday. 
  • Taiwanese buyers said most mills have lowered booking volumes and adopted a wait-and-watch strategy until the Chinese Lunar New Year holidays in February. 
  • The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling fell by $10/mt, $6/mt, $10/mt, and $4/mt cfr, respectively. Amid a fall in Japanese ferrous scrap offers over the week and a drop in Turkish purchase price, mills have turned cautious and shied away from deals. 
  • Yards are keeping offers firm or waiting till Chinese New Year in anticipation of a price rise when mills return post their scheduled maintenance.
  • Domestic scrap prices remained lower than for imported material. 
  • On Monday, Feng Hsin Steel reduced rebar and ferrous scrap prices by TWD800/mt ($28.58/mt) for February deliveries. 
  • The weekly Davis Indexes for domestic HMS 1&2 (80:20) fell by TWD800/mt this week to delivered South Taiwan and North Taiwan mills, respectively. ($1=TWD28)

 

China

  • In China, Shagang Steel’s ferrous scrap purchase prices fell by CNY20/mt ($3/mt) on Monday from the prior week. Chinese HRC manufacturers were cautious of a possible cut in rebates to 8-9pc from 13pc to curb steel output. Semi-finished steel prices also fell due to sluggish demand amid production cuts to reduce pollution.
  • Prices are likely to stabilize after the Chinese New Year as demand rises and inventories fall.
  • The weekly Davis Index for the HMS 1&2 (80:20) fell by CNY20/mt delivered mill. The market was bearish due to limited buying, cold weather, rising COVID-19 cases restriction, and production cuts due to pollution control. ($1=CNY6.5)

 

Vietnam 

  • A sluggish finished steel demand, fall in billet export prices, and the upcoming holidays kept Vietnamese scrap bids low this week. Due to market uncertainty and shortage of containers, Vietnamese mills preferred negotiating for bulk scrap from Japan and Russia. 
  • In the containers market, the weekly index for US-origin HMS 1&2 (80:20) Thursday settled down by $7/mt cfr Vietnam from the prior week. Vietnamese mills’ offers remained unchanged from the prior week. Traders expect bids to rise as exporters were not ready to reduce offers.
  • The weekly index for P&S 5ft and shredded fell by $7/mt and $12/mt, cfr, respectively, on Thursday, amid lower bids. 
  • The weekly Davis Index for domestic HMS 1&2 (80:20) fell by VND83,333/mt ($3.6/mt) delivered South Vietnam inclusive of taxes. 
  • In bulk, offers for Japanese HMS 1&2 (50:50) fell by $40-50/mt cfr on Monday. ($1=VND23,184)

 

Indonesia

  • Indonesian mills stayed away from the imported scrap market. Many yards are yet to register to adhere to Indonesia’s import policy, thereby limiting offers. Traders are negotiating deals from Hong Kong, Australia, Singapore, and the US, but are wary of falling prices.
  • Buyers expect ferrous scrap prices to drop until Lunar New Year. The weekly Davis Index for HMS 1&2 (80:20) fell $12/mt cfr Jakarta. Bids fell by $10/mt cfr Jakarta on Thursday from the prior week.
  • The indexes for P&S 5ft and shredded fell by $16/mt and $10/mt cfr Jakarta, respectively. Offers for UK-origin P&S 5ft fell by $10/mt from the prior week. The weekly Davis Index for #1 busheling fell by $16/mt cfr on low bids.

 

Thailand

  • The weekly Davis Index for domestic HMS 1&2 (80:20) settled flat delivered Rayong mill inclusive of taxes, amid limited deals and weak global cues. Steel mills are expected to raise bids as they restock scrap inventory in anticipation of a rise in steel demand in mid-February. Several infrastructure projects are expected to be delayed following a rise in COVID-19 cases. 
  • Container shortage and vessel delays added to the woes of steel mills interested in short transit imports. Thai steelmakers expect prices for HMS 1&2 (80:20) to remain unchanged until Lunar New Year amid limited supply. ($1=THB30)

 

Malaysia 

  • The weekly indexes for HMS 1&2 (80:20) fell by MYR70/mt ($17/mt) delivered western mills and eastern mills inclusive of taxes.
  • Malaysian steelmakers were cautious due to sluggish domestic steel demand amid an extension of lockdown in Malaysia. Exports also remained slow. Traders expect MYR100/mt fall next week on weak demand. ($1=MYR4)

 

India 

  • Barring scrap from UAE, prices for the material of other origins were on a decline on Friday. Small mills preferred competitively priced domestic scrap. 
  • Domestic steel prices remained mixed as mills focused on sales of finished steel and accessing the impact of the recent duty cut on ferrous scrap by 2.5pc to zero and steel imports from 10-12.5pc to flat 7.5pc. 
  • The daily Davis Index for containerized shredded, Friday cfr Nhava Sheva, flat from Thursday. Prices dropped by $20/mt from the prior Friday. Alloy steel producers lifted their bids to match offers amid depleting inventories. 
  • HMS from Dubai was a preferred option for most buyers on shorter delivery times and competitive prices. 
  • The Davis Index for UAE-origin HMS 1&2 (80:20), Friday, cfr Nhava Sheva, up by $1/mt from a day earlier but down $9/mt from January 29. 
  • The daily Davis Index for US-origin HMS 1&2 (80:20), Friday, dropped by $1.25/mt cfr Nhava Sheva. The same was down by $10/mt from a week ago. Trades for grades like busheling and P&S are still slow with their indexes down $2/mt and $4/mt respectively. 
  • The weekly index for Turning scrap dropped by $12/mt cfr Nhava Sheva. 
  • Indian mills were still under pressure for the billet export with offers dropping by $10-15/mt from a week earlier. Also, billet prices in Iran and SE Asia lowered by the same amount on bearish demand. ($1=Rs72.93)

 

India domestic

  • The Davis Index for HMS 1&2 (80:20) registered an uptick of Rs200/mt ($2.75/mt) from the prior day. From last Friday, however, the index declined by Rs900/mt weighed down by weak steel demand. Mills bought limited volumes amid uncertainty in the price direction. But the supply of domestic material has started to dip, which could give prices a lift in the coming days. 
  • In Mumbai, the index for HMS 1&2 (80:20) rose by Rs500/mt in a week. With sellers unwilling to lower offers, mills with low inventories in hand were pressured to increase their bids.

 

Pakistan  

  • Pakistani mills bought limited volumes of imported ferrous scrap available at lower prices. Active rebar sales ahead of peak construction demand season in the next two months is expected to increase trades as mills with limited inventories restock ferrous scrap in the coming days.
  • Opinions on the price direction were mixed with some believing prices have bottomed out and could rebound in Turkey as mills resume booking for March and April shipments.
  • The Davis Index for containerized shredded, Friday, fell $22.5/mt from the prior week. Sellers were unwilling to match present bid levels amid tight supply, re-lockdowns, elevated processing cost for shredded, and high freight rates. 
  • A fall in US fas prices pulled bids down in the South Asian market. 
  • The Davis Index for UAE-origin HMS 1&2 (80:20), Friday, dropped by $16/mt from a week ago. Some UAE sellers refused to lower offers as they in no desperation to sell until prices rebound. 
  • The weekly Davis Indexes for P&S 5ft and #1 busheling cfr Port Qasim, dropped $26/mt and $23/mt. The gap between premium grades vs medium grades is expected to widen in the coming days. 
  • In Lahore, the weekly index for domestic Bala billet dropped by PKR2,000/mt ex-works. 
  • Demand for rebar remained strong but sales of other steel products remained hit. The weekly Davis Index for rebar dropped by PKR3,000/mt ex-works Karachi. The weekly index for Art Pure Q toke scrap equivalent to a mix of HMS and P&S Friday decreased by PKR2,750/mt ($17/mt) ex-yard Lahore.  ($1=PKR160.20)

 

Bangladesh

  • Bangladeshi mills bought limited volumes of containerized ferrous scrap as only a few sellers were willing to match the present bid levels. 
  • Domestic steel demand is expected to remain strong pushing mills to be back in the ferrous scrap market next week for restocking. 
  • The daily Davis Index for containerized shredded on Friday was up by $0.04/mt cfr Chattogram from Thursday, but down by $20.71/mt from Jan 29. Prices have declined by $95/mt from their on Jan 12. 
  • The indexes for containerized HMS 1&2 (80:20) from the US and Latin America tumbled by $20/mt from a week ago. Many suppliers stayed away from offering in the seaborne market amid strong domestic realization. UK yards were away from negotiations with the country under lockdown due to rising COVID-19 infections.
  • Indian mills offered sponge iron down by $5-10/mt amid weak domestic fundamentals. Trades for containerized P&S and #1 busheling and prices for the grades fell by $19/mt and $21/mt, respectively.
  • The weekly index for ship scrap equivalent to P&S fell by BDT500/mt ($7/mt) ex-works. Some yards offered domestic ship scrap at BDT37,000-37,500/mt ($437-442/mt) ex-works.
  • The index for domestic billet was down by BDT500/mt ex-works Chattogram. Due to squeezed margins, mills lowered discounts on steel to BDT500-1,000/mt from BDT1,500-2000/mt last week. 
  • For shipbreakers, offers for vessels were cnf Chattogram, unchanged from the prior week.($1=BDT84.74)

 

Metallics

 

CIS 

  • The weekly Davis Index for CIS basic pig iron decreased by $10/mt in Black Sea basin on Friday amid weak demand in the global market.
  • Negotiations were slow in the CIS export pig iron market as some suppliers tried to offer material but failed to receive firm bids since most importers expected lower prices.
  • The weekly Davis Index for CIS pig iron in Italy dropped by $14/mt on Friday on suspended trading. CIS exporters reduced offers to $520-525/mt cfr from $550-560/mt cfr a week ago, but still found no interest from buyers.
  • No sales were reported from the CIS Black Sea region during the week, while a transaction was fixed in the Baltic Sea region for a small cargo of around 5,000mt of pig iron from Russia at $500/mt fob to Western Europe. 

 

US

  • The weekly Davis Index for basic pig iron (BPI) climbed by $7/mt cfr New Orleans port on Thursday as fresh cargoes for March shipment were booked to the US from Brazil with deals priced at similar levels to the prior week.
  • The most recent deals are priced with wide ranges for the second week due to a disparity in material specifications. The lowest-priced deals originated in Southern Brazil for high phosphorus material, containing 0.15pc for the chemical, while a higher-priced deal at $535/mt cfr Nola details prompt shipment for normal grade material. 
  • Sales for BPI ranging between $500-535/mt cfr Nola concluded over the past couple of days, with the low end representing discounted low-grade material. Further offers heard remain at $530-540/mt cfr Nola this week, matching last week’s offers. Bids are just under those numbers near $525-530/mt cfr Nola.
  • The Davis Index for nodular pig iron (NPI) imports moved down by $3/mt cfr Nola. There is a low activity for the grade that also holds limited availability, but the latest offers and bids heard for NPI have ranged from $560-600/mt cfr Nola with delivery in May and beyond. 
  • The weekly Davis Index for US hot briquetted iron (HBI) imports increased by $20/mt cfr Nola. Offers or bids have not been reported recently, however, the price estimation for the material is adjusted based on consumer interest levels and prices for other grades.

 

India

  • Offers for Sponge iron in the Mandi Gobindgarh market declined by Rs400/mt from Thursday. The index for Sponge iron declined by Rs900/mt in a week. In Mumbai, the index for Sponge iron declined by Rs1,650/mt in a week.
  • Despite the fall, Sponge iron prices remain unworkable for mills. Steelmakers thus focused on domestic scrap purchases over imported or Sponge iron. ($1=Rs72.93)

 

India semi-finished and finished steel

  • The daily Davis Index for billet in Mumbai decreased by Rs500/mt ($6.85/mt) from last Friday. Prices gained on Friday amid a rise in input cost as the Maharashtra state government abolished power subsidy. Mills have kept rebar offers unchanged since the Union Budget was announced on Monday. 
  • In Raipur, the index for billet was down by Rs2,000/mt ($27.43/mt) from the previous Friday amid a dip in sponge iron and rebar prices. The daily index for rebar dropped by Rs1,800/mt ($24.69/mt) on weak sales. Steel mills believe prices could have bottomed out.
  • In Mandi Gobindgarh, the daily index for ingot was decreased by Rs500/mt from the previous Friday on a fall in local scrap prices.
  • In Durgapur, the bi-weekly index for billet down by Rs3,300/mt ($45.26/mt) on Thursday while the index for rebar was down by Rs2,600/mt ($35.66/mt)
  • In Chennai, the bi-weekly index for billet fell by Rs4,000/mt ($54.86/mt) weighed down by a decline in rebar prices due to sluggish demand. 

 

Shipbreaking 

  • Shipbreaking scrap prices dropped on Friday amid tepid demand from rolling mills in Mandi Gobindgarh and Gujarat. Trading thinned at the current price levels.
  • The daily Davis Index for 8Ani declined by Rs1,750/mt ex-Alang yard. 
  • The index for 5kg plates declined by Rs1,550/mt ex-Alang. Shipbreakers are pinning hopes on the government’s infra push to boost domestic consumption of finished steel. Some market participants believe the sluggish steel consumption is also due to liquidity crunch
  • The Davis Index for HMS attachments and Melting fell by Rs1,200/mt ex-Alang. 

 

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