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Ferrous market update: February 15-19

Ferrous Market Update 02/19/2021

 

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) rose by $5/mt on Friday as sellers withdrew from negotiations due to unattractive bids.
  • Some Turkish mills were looking for HMS 1&2 (80:20) from the USA or the Baltic region at $420/mt cfr. However, most exporters refused to negotiate at those levels as they believe scrap prices should reach $430-450/mt cfr, considering the most recent Turkish rebar sales at around $620/mt fob and $620-625/mt ex-works. 
  • Recyclers are also bullish on scrap demand from alternative outlets, particularly in the Middle East, Asia, and Latin America. In the Azov-Black Sea basin, most scrap suppliers were also reluctant to sell to Turkey.
  • The daily domestic spot rebar prices in Turkey increased by TRY30-70/mt ($4-10/mt) on Friday due to active trading, while the daily exported rebar prices were flat as negotiations were in progress with no new deals reported so far. ($1=TRY6.97)

 

Turkey domestic

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey increased by TRY57/mt ($8/mt) on Monday as demand for the material improved in the domestic market.
  • Turkish electric arc furnace (EAF) mills raised their purchase prices for local ferrous scrap, considering production requirements, while most basic oxygen furnace (BOF) mills held them unchanged.
  • Purchase prices for shipbreaking scrap in the Izmir region rebound by $5/mt over a week as market sentiment improved. ($1=TRY6.96)

 

CIS

  • The weekly Davis Index for HMS 1&2 (80:20) rose by $21/mt fob Baltic Sea and by $17/mt fob Black Sea on Monday as the export market regained strength.
  • Trading activity was slow despite improved demand, as sellers resisted raised bids in anticipation of achieving higher prices. The only deal reported was for 18,000mt of HMS 1&2 (95:5) at $399.5/mt cfr Turkey from Murmansk. The cargo is due to be shipped this month.
  • Most exporters from St Petersburg and Rostov-on-Don expect prices in Turkey to reach $420-430/mt cfr for HMS 1&2 (80:20) soon.
  • Collection prices for ferrous scrap decreased further at Russian docks. Thus, the weekly Davis Index for HMS 1&2 (80:20) dropped by RUB325/mt ($4/mt) delivered St Petersburg dock and by RUB950/mt ($13/mt) delivered Rostov-on-Don dock. ($1=RUB73.22) 

 

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region increased by €16/mt ($19/mt) on Tuesday amid positive export market sentiment.
  • Ferrous scrap suppliers in the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) raised collection prices anticipating higher deal prices in Turkey due to better demand. Importers are looking for European-origin HMS 1&2 (75:25) at around $400/mt cfr now, while exporters target at least $10/mt higher. Negotiations are expected to bring new deals in the short term. (€1 = $1.21)

 

UK dockside

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices increased by £15/mt ($21/mt) delivered dockside over the past week.
  • UK dockside ferrous scrap purchase prices leaped by £10-15/mt during the week in response to robust domestic and export demand. Local merchants commented that a major domestic smelter had requested an increase on top of agreed volumes following monthly settlements last week.
  • Other export focussed suppliers experienced an improvement in South Asian demand, particularly for containerized scrap to Pakistan.
  • The weekly index for north and south UK OA (Plate & Structural) increased by £15/mt delivered dockside over the same period.
  • Davis’ north and south UK 5A/5C (frag feed) ferrous scrap indices climbed by £10/mt delivered dockside, respectively. (£1 = $1.39)

 

Spain 

  • Davis Index’s weekly northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices increased by €15/mt cfr ($18/mt) over the past week, respectively.
  • Buyers are returning to the market to secure cargoes before prices climb much higher with Turkey re-entering the market. With one Spanish-based mill resuming idled output after maintenance, Davis Index has heard that there is more interest for fresh cargoes.
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices increased by €15/mt fob, respectively, on Feb 19. (€1=$1.21)

 

Germany domestic

  • Davis Index’s monthly German ferrous consumer scrap indices declined on average by €34/mt ($41/mt), depending on grade and location, following the conclusion of mill-yard negotiations in February.
  • German monthly mill-yard settlements fell over the past month, as domestic benchmarks largely took their cues from the export market, despite a relatively tight local supply-demand balance.
  • Some domestic steel producers initially opened negotiations at down €45/mt versus the prior month in early February, as they tried to capture much of the weakness exhibited in major seaborne trade routes. 
  • That said, most mills struggled to secure sufficient volumes at those levels, which was made more challenging by a material rebound in north European export prices to Turkey during the monthly negotiations. As a result, German steel producers were obliged to make two downward revisions to those initial bids, first to down €30/mt and then to down €20/mt compared with January settled prices.
  • Some ferrous scrap traders commented that local supply availability, particularly of prime grades, had become relatively tight, as the global shortage of semiconductor chips had impinged domestic vehicle production rates.
  • North, East, South, and West German ferrous scrap indices declined by €27-45/mt, €20-37/mt, €26-37/mt, and €35-45/mt delivered consumer over the past month, respectively, for Sorte 1 (E1), Sorte 2 (E2), Sorte 3 (E3), Sorte 4 (E40), Sorte 5 (E5), and Sorte 8 (E8). (€1=$1.21)

 

US dockside

  • US East Coast dock collection prices for ferrous scrap increased by about $5-10/gt while Houston dock prices rose about $22-23/gt during the week as export activity improved gradually, amid restricted material flow to the docks. 
  • Incoming material paused in many US regions as extreme weather conditions impeded flows. Transactions were restricted to yards holding existing material and concluding at improved prices. Dockside sales of #1 HMS were reported between $315-335/gt at various East Coast export yards on Tuesday.
  • Shredder feed prices have fluctuated the most in tandem with zorba prices that started climbing again recently. Shredder operators have been focusing on their captive tonnage over the past month while stopping further material movements from independent yards. Shredder feed continues with wide price ranges transacting at $215-255/gt delivered, based on dock location and prior sales level.
  • Exports to Turkey will likely pick up soon as mills are short by about 10 deep-sea cargoes for March shipment and may look for April bookings as well. Mill inquiries on cargoes were not readily met with offers on Tuesday as some suppliers await higher prices.
  • In Boston, the weekly Davis Index for export yard #1 HMS rose by $10/gt and climbed by $9/gt for P&S 5ft, delivered Boston dock. Shredder feed increased by $17/gt delivered. 
  • The weekly Davis Index for export yard buying prices in New York moved up by $10/gt delivered for both #1 HMS and P&S 5ft and inclined for shredder feed by $15/gt delivered. 
  • In Philadelphia, the Davis Index for export yard collection prices of #1 HMS increased by $6/gt delivered while P&S 5ft rose by $8/gt and shredder feed increased by $15/gt delivered. 
  • In Houston, the weekly Davis Index increased for #1 HMS, P&S 5ft and shredder feed by $23/gt delivered, $22/gt delivered, and $22/gt delivered, respectively.
  • The US West Coast weekly export yard ferrous scrap prices were unchanged in Portland, inched up in Los Angeles and declined in San Francisco.
  • Turkey’s higher import scrap prices, China’s imminent entry into the scrap market after the Lunar New Year holiday, and an overall expectation of the Asian economic activity rising have the US scrap exporters anticipating a stronger scrap market in late February and March. 
  • The EU and UK’s dock buying prices increased by about $20/gt over the past week. Japan’s export offers are firming up as inquiries rise from Asian mills seeking to restock raw material inventories. Offers on bulk from Japan have also increased by $40-50/mt in the past week to countries like Vietnam. 
  • Asia’s domestic scrap prices are increasing. Japan’s Tokyo Steel increased domestic bids on tight supply, which will further support export prices. High iron ore and pellet prices are also supporting global scrap prices. 
  • The upward mobility of scrap prices is further supported by the expectation that US domestic scrap prices will increase by $20-30/gt in March and depending on weather trends, some market participants note that mills may potentially pay more for grades or rushed truck deliveries.
  • In Portland, the Davis Indexes remained unchanged as the region got hit by a snowstorm. Several yards remained closed as others were hampered by power outages and limited functionality. 
  • The weekly indexes in San Francisco adjusted down over the past week though market participants expect them to firm up again on export activity by the end of the month. Buying prices are heard to be varying widely as some sellers are more willing to sell to docks while others are holding on to inventories in anticipation of an upward swing. The index for #1 HMS, P&S 5ft, and shredder feed decreased by $27/gt delivered, $25/gt delivered, and $14/gt delivered, respectively.
  • The weekly Davis Indexes for dock prices in Los Angeles were mostly rangebound. The index for #1 HMS increased by $2/gt delivered and P&S 5ft climbed by $4/gt delivered. Shredder feed also rose by $2/gt delivered. Dock prices may increase in case of additional export activity at higher prices.  

 

US containers

  • US containerized scrap prices rose for the second successive week on positive cues from China and Asia where steel demand has improved resulting in increasing scrap import needs. 
  • US export ferrous scrap prices are also receiving support from higher Turkish import prices and rising offers from competing Japanese exporters. Offer prices from Australia, Russia, the EU, Baltics, UAE, and Latin America are also on the rise. 
  • The availability of containers throughout the West Coast continues to remain a concern along with higher freights. 
  • Market participants expect a surge of up to $10/mt next week as the market revives after the recent Lunar holiday. Buyers that have remained on the sidelines waiting for lower prices are now realizing that the bottom was a few weeks ago and prices are likely to remain strong through March. 
  • The weekly Davis Indexes for containerized scrap in New York leaped by $9-20/gt during the week. The index for machine turnings held unchanged while #1 busheling increased by $20/mt, HMS 1&2 (80:20) climbed by $9/mt, P&S 5ft rose by $16/mt and shredded moved up by $13/mt fas.
  • In Los Angeles, the weekly Davis Indexes increased by $16-20/mt fas with #1 busheling climbing by $16/mt, shredded rising by $19/mt, and both HMS 1&2 (80:20) and P&S 5ft increasing by $20/mt fas.
  • In San Francisco, the weekly indexes climbed by $8-11/mt with #1 busheling and shredded rising by $9/mt. HMS 1&2 (80:20) increased by $8/mt and P&S 5ft rose by $11/mt fas.
  • The Davis Indexes in Seattle gained $5-20/mt this week with #1 busheling, shredded, HMS1&2 (80:20), and P&S ft rising by $5/mt, $15/mt, $20/mt, and $18/mt fas, respectively. 
     

Mexico

  • Mexico’s domestic ferrous scrap prices fell in the Central area after it was severely affected by a shortage of natural gas.
  • Prices began to fall in Central Mexico as some mills reduced or halted operations after the government asked them to cut down on consumption of natural gas due to a shortage in the country.
  • Scrap prices are expected to continue falling next week in the Central area as supply is significantly outpacing demand. 
  • The unavailability of natural gas, which is mostly imported from Texas, was felt acutely by bigger steelmakers like Altos Hornos de México (Ahmsa), which has reportedly lost 20,000mt of steel production this week due to the shortage.
  • 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, respectively.
  • In Bajío, the weekly Davis Index for #1 busheling rose by MXN250/mt delivered Mexico consumer, while the indexes for #1 HMS, P&S 5ft, shredded, and machine shop turnings held unchanged.
  • In North Mexico, the weekly Davis Index for machine shop turnings fell by MXN200/mt delivered Mexico consumer while #1 HMS, P&S 5ft, shredded, and #1 busheling settled flat. ($1=MXN20.51)

 

Japan  

  • Tokyo Steel raised domestic scrap bids by JPY2,000/mt ($19/mt) at Utsunomiya works and by JPY500/mt delivered Okayama, Kyushu, and Takamatsu, effective Feb 19. Prices were unchanged at the Tahara plant.
  • Most mills were away this week amid annual maintenance, while others are waiting for Chinese importers to resume trade. With Japanese domestic scrap prices rising by JPY5,000-7,000/mt ($47.61-66.66/mt) from the prior week, mills in South Korea, Vietnam, and Taiwan stayed away from imports and opted for local scrap this week.
  • Shortage of domestic scrap in Japan and the rise in Kanto and Kansai tender bids prompted exporters to raise offers, while limited trades were heard this week due to holidays. Also, an anticipated rise in scrap demand post-holidays supported higher offers. 
  • In Japan’s monthly Kansai export tender, which concluded on Monday, the winning bid for 5,000mt of #2 HMS was up JPY8,335/mt ($79/mt) fas Tokyo bay, from the previous tender.
  • Traders raised offers for HS to $470-480/mt cfr China this week following higher bids at Kansai tender amid expectations of brisk demand post-Lunar New Year holidays. Bids were heard at $450-455/mt cfr. 
  • Chinese mills are expected to increase purchase volumes post-holidays but HRC manufacturers in China are cautious of a possible cut in export rebates to 8-9pc from 13pc in a move to curb steel output. This could pressure raw material prices in China in the coming days.
  • The index for P&S 5ft (small bulk) China port rose by $9/mt cfr from the prior week on higher offers. The weekly Davis Index for Japanese #2 HMS rose by JPY2,750/mt fas, while the index for the grade on fob basis rose by JPY2,750/mt fob Japan due to rising offers. Many traders indicated that offers are rising every day while bids were limited due to holidays.
  • Exporters raised offers for #2 HMS by JPY1,000-2,000/mt fob from the week prior. 
  • Offers for Japanese #1 busheling (Shindachi) rose by JPY5,000/mt fob from a week ago. The weekly index for the grade rose by JPY3.25/mt fas Japan. With Turkish mills raising scrap purchase volumes as well as prices and the index rising by almost $4/mt cfr on Tuesday from Feb 12, many traders are expecting a rise in global ferrous scrap prices next week.
  • The weekly Davis Index for HS and shredded, Wednesday, rose by JPY3,250/mt fas, respectively. Limited trades were heard this week as most mills waited for cues from the Chinese market.
  • Offers for HMS 1&2 (50:50) rose by $25-30/mt cfr Vietnam this week. After Kansai bids, the index for the grade rose by $25/mt cfr Haiphong. Buyers resisted offers and were cautious of rising prices.
  • In Taiwan, the index for Japanese HMS 1&2 (50:50) rose by $20/mt cfr on Wednesday. Offers rose to $405-415/mt cfr on Wednesday, up by $25-35/mt from the prior week. ($1=JPY105.6)

 

South Korea  

  • The Davis Index for domestic Heavy A rose by KRW5,000/mt ($4.5/mt) and KRW10,000/mt delivered Incheon and Pohang, respectively. Mills are slowly raising bids for domestic scrap as yards refused to sell at lower prices. Most mills are expected to refill inventories post-holidays. Offers are expected to rise further as domestic supplies remain tight.
  • US exporters raised offers for bulk HMS 1&2 (80:20) from USWC to $440-450/mt cfr South Korea on Thursday. Offers are expected to rise on strong demand and global scrap shortage.
  • The weekly Davis Index for domestic Light A rose by KRW15,000/mt delivered Pohang mill. Demand is limited amid Lunar New Year, said importers.
  • Containerized imported ferrous scrap prices increased amid rising offers supported by scrap and container shortage in most exporting countries. Mills stayed away from purchases this week on account of the Lunar New Year holidays. A few buyers raised bids to secure material in anticipation of a further rise next week. Many steel mills in East Asia are under annual maintenance and expected to resume scrap buying post-holidays.
  • The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, rose $5/mt cfr South Korea on Wednesday. Bids were flat, while offers heard at $375/mt. No deals were heard amid Lunar New Year festivities.
  • The weekly Davis Indexes for P&S 5ft and #1 HMS, Wednesday, rose by $3/mt and $1/mt to cfr South Korea, respectively. The index for shredded rose by $3/mt cfr from the prior week. Hyundai booked 15,000mt of #1 HMS from New Zealand at $391/mt before the holidays for March shipment amid rising Japanese offers.
  • Traders anticipate a further rise in Japanese export prices after Kanto and Kansai Tender. With higher purchases by Turkish mills on the back of rising finished steel demand, the Turkish index rose $4/mt on Tuesday from Friday.
  • Offers for Japanese #2 HMS rose by JPY1,000-2,000/mt fob from the prior week post-Kansai tender. Most mills in Korea are cautious and waiting for cues from the Chinese market post-holidays. ($1=KRW1,106)

 

Taiwan  

  • The Davis Index for containerized US-origin HMS 1&2 (80:20), Thursday, rose by $17/mt cfr Taiwan with buyers eager to match offers. US-based exporters raised offers to $390-400/mt in anticipation of a rise in finished steel demand post-holidays. The index rose by $20/mt from the prior week (0Feb 11). 
  • The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling rose by $25/mt, $23/mt, $29/mt, and $25/mt cfr, respectively. Mills have turned cautious amid a rise in offers for Japanese scrap after Kanto and Kansai tenders. Buyers are negotiating with Japanese and US suppliers to secure deals before prices go up further. No deals heard this week, but traders expect bookings to resume soon.
  • The weekly Davis Indexes for domestic HMS 1&2 (80:20) was flat on Tuesday delivered South Taiwan and North Taiwan mills, respectively. Feng Hsin raised ferrous scrap bids by TWD500/mt on Wednesday to procure domestic scrap instead of imports.
  • In bulk, offers for HMS 1&2 (50:50) rose to $415/mt cfr Taiwan on Thursday.
  • Most mills are under maintenance and will be back in the market post-holidays. 
  • Limited offers for HMS 1&2 (90:10) from Central America in FEU heard on Tuesday at $360-365/mt cfr. Most suppliers preferred other regions for better prices. Taiwanese importers indicated that domestic scrap is still cheaper than imports, but supply is tight. ($1=TWD28)

 

China

  • In China, Shagang Steel’s ferrous scrap purchase prices were unchanged from the prior week amid the Lunar New Year holidays on Tuesday. With importers booking trial orders for 3,000mt each from South Korea and Singapore cfr in the prior week, traders expect prices to rise post holidays on strong finished steel demand from infrastructure and real estate sectors. 
  • Also, iron ore demand rose this week and is expected to rise further next week. This week, Iron ore Fe 62pc hit an 11-year high surpassing $175/mt cfr Qingdao as mills resuming buying post-holidays.
  • The weekly Davis Index for the HMS 1&2 (80:20) settled flat delivered mill, down by $1.5/mt from the week prior due to the depreciation of Chinese yuan against the US dollar.
  • In Tangshan, Q235 150mm square billets traded flat due to high inventory, holidays, and pollution-related stoppages, this week. Many mills are expected to raise billet prices post-holidays. Prices are likely to stabilize after holidays as demand rises and inventories fall.
  • Traders overseas expect Chinese demand for ferrous scrap to sustain in February after holidays as steel mills start restocking. Importers indicated that scrap shortage in Japan and anticipation of a rise in finished steel demand post-holidays made exporters raise offers this week. No small bulk deals heard this week after China expanded sources for imported scrap with trial orders from South Korea and Singapore in the prior week. ($1=CNY6.4)

 

Vietnam 

  • Vietnamese mills have raised bids post-holidays but still prefer to buy bulk scrap from Japan and Russia. Offers for Russian 3A scrap heard at $450/mt but no deals confirmed. 
  • A deal for Japanese #2 HMS on fas basis heard this week, while offers rose to $420-430/mt cfr. Mills negotiated with Japanese, US, and Russian exporters on Thursday. Buyers are taking cues from Hyundai’s bids and Turkish prices before confirming deals. Hyundai raised bids for Japanese #2 HMS post-Kansai tender to JPY40,500/mt fob and HS, shredded and busheling (shindachi) at JPY44,500/mt fob and HMS 1&2 (50:50) at JPY41,000/mt fob.
  • In the containers market, the weekly index for US-origin HMS 1&2 (80:20) Thursday settled up $18/mt from the prior week. While Vietnamese mills raised bids to $390/mt, while offers rose to $405/mt, but no deals heard. 
  • The weekly index for P&S 5ft and shredded rose by $12/mt and $14/mt cfr, respectively, on Thursday, amid rising offers.
  • In bulk, offers for Hong Kong HMS 1&2 (50:50) heard at $410/mt on Tuesday. Offers for Japanese #2 HMS rose by $15-20/mt, while bids at $418/mt on Thursday.
  • The weekly Davis Index for HMS 1&2 (80:20) was flat this week at VND8,400,000/mt ($365.6/mt) delivered South Vietnam inclusive of taxes. Prices are expected to rise post-holidays and on global cues with Vietnamese mills expected to book Japanese scrap next week. 
  • Demand for finished steel is anticipated to rise in March on the recovery of auto and infrastructural sectors. With exporters and mills waiting for price direction post-holidays, bookings are expected to increase in the next few days, said traders. A few deals for busheling heard in South Vietnam on Tuesday.
  • In bulk, offers for Japanese #2 HMS rose by $40-50/mt cfr on Tuesday. ($1=VND23,030)

 

Indonesia

  • Indonesian mills raised bids to spur some deals this week. Buyers are cautious of new bookings as registrations of many yards will expire in March. Traders are negotiating deals from Hong Kong, Australia, Singapore, and the US but are wary of rising prices.
  • The weekly Davis Index for HMS 1&2 (80:20) rose by $17/mt cfr Jakarta. Limited deals heard at $395-400/mt cfr Jakarta on Thursday. Mills preferred scrap from Malaysia and Hong Kong for immediate requirements and to avoid delays in shipment.
  • The indexes for P&S 5ft and shredded rose by $8/mt and $10/mt cfr Jakarta, respectively. 
  • The weekly Davis Index for #1 busheling rose by $18/mt cfr. Offers for New Zealand origin P&S 5ft heard at $435/mt cfr Jakarta, up by $10/mt from the prior week. Limited deals were heard for the grade as most mills preferred to wait amid rising global scrap prices.

 

Thailand

  • The weekly Davis Index for domestic HMS 1&2 (80:20) settled flat delivered Rayong mill inclusive of taxes, amid limited deals. Mills are opting to wait and buy cautiously post Chinese New Year. Steel mills are expected to raise bids as they restock scrap inventory in anticipation of a rise in steel demand. Several infrastructure projects are expected to be delayed following a rise in COVID-19 cases. Deals for domestic P&S 5ft heard at on Tuesday.
  • Container shortage and vessel delays added to the woes of steel mills interested in short transit imports. 
  • Billet offers rose by $10/mt cfr Thailand from the Russian mills, but buyers preferred to wait to gain clarity on price direction. ($1=THB30)

 

Malaysia 

  • The weekly indexes for HMS 1&2 (80:20) remained unchanged at MYR1,410/mt ($350/mt), and MYR1,445/mt delivered western mills and eastern mills inclusive of taxes, respectively.
  • Malaysian steelmakers are cautious amid an extension of lockdown in Malaysia and rising global scrap prices. Buyers prefer to wait and analyse market sentiments. Trades slowed with offers for US-origin HMS 1&2 (80:20) in FEU up $10/mt from the prior week. Few bids at $360/mt. 
  • Importers are closely watching Turkish and Chinese scrap purchases ahead of new bookings. ($1=MYR4)

 

India 

  • Strong domestic steel demand and production ramp-ups boosted imported scrap trades in India. Small mills preferred competitively priced domestic scrap but if local supplies tighten, they would be forced to buy imports to refill inventories.
  • The daily Davis Index for containerized shredded, Friday, cfr Nhava Sheva, up $0.44/mt from Thursday. The index rose $36.07/mt from the prior Friday (Feb 12). 
  • Prices for the UAE origin HMS 1&2 (80:20) jumped by $45/mt cfr from a week prior. 
  • The daily Davis Index for US-origin HMS 1&2 (80:20), Friday, rose by $2.5/mt cfr Nhava Sheva. US-based suppliers held offers high amid a bullish outlook for domestic settlements in March.
  • There was no demand for grades other than HMS and Turning. Trades for grades like busheling and P&S remain halted. The indexes for the grade rose $35/mt and $28/mt cfr Nhava Sheva, respectively, amid high offers. 
  • The weekly index for Turning scrap increased by $26/mt cfr Nhava Sheva. Offers for West and East African HMS with CI-GI recovered by $25-30/mt from a week ago.
  • Southeast Asian billet importers were upbeat due to the resumption of Chinese buying. Indian primary mills resumed billet exports as secondary mills focused on the domestic market. Last week, the Indian government revised procurement policies and allowed the use of secondary steel in infrastructure projects. 
  • An Indian primary mill exported 30,000mt of billet at $560-565/mt cfr Southeast Asia, up $15/mt from the prior deals. 
  • A sharp rise in freight rates on the US West Coast to Asia routes has resulted in limiting trades and supply in the subcontinental markets. ($1=Rs72.92)

 

India domestic

  • The Davis Index for HMS 1&2 (80:20) in the Mandi Gobindgarh registered an uptick of Rs2,250/mt from the prior week. On Friday, the index increased by Rs650/mt amid high imported scrap offers. Mills bought actively amid strong steel demand and bullish global outlook. The supply of domestic material has started to dip, which could lift prices in the coming days. 
  • In Mumbai, the index for HMS 1&2 (80:20) rose by Rs1,250/mt this week. With sellers unwilling to lower offers, mills with low inventories are pressured to increase bids

 

Pakistan  

  • Demand for imported ferrous scrap in Pakistan continued to remain high. Steel prices rose amid tight supply as mills attempt a price hike to cover the increased landed price of imported scrap. 
  • The Davis Index for containerized shredded, Friday, increased by $38.22/mt from the prior week. Pakistani buyers paid higher than their Indian and Bangladeshi counterparts early in the week, but on Friday turned cautious and stepped back to check if Chinese prices sustain. 
  • The index for US-origin HMS 1&2 (80:20) cfr Port Qasim, up by $34.79/mt from Feb 12. Importers said, higher March settlements in the US domestic market could have a bearing on offers to South Asian markets in the coming days. 
  • Trades for containerized UAE-origin HMS 1&2 (80:20) at $415-420/mt cfr Port Qasim. Mills opted for Dubai-origin HMS 1&2 (80:20) as shredded prices rose above expectations. 
  • The weekly Davis Indexes for P&S 5ft and #1 busheling rose by $31/mt and $35/mt, respectively, but trades remain halted. 
  • On Friday, the weekly index for domestic Bala billet rose by PKR5,750/mt ($36/mt) to PKR102,500/mt ($646/mt) ex-works. Demand is expected to pick up gradually as positive sentiment spreads across the market. 
  • Rebar prices rose by PKR500-1,500/mt depending on quality amid slow trades. 
  • The weekly index for Art Pure Q toke scrap equivalent to a mix of HMS and P&S Friday increased by PKR3,500/mt ($22/mt) ex-yard Lahore. ($1=PKR158.9)

 

Bangladesh

  • Bangladeshi mills actively sought ferrous scrap trades as domestic steel prices showed signs of recovery. Amid expectations of healthy finished steel demand in the ongoing peak construction season, mills resumed restocking of ferrous scrap buying both containers and bulk cargoes. 
  • Sentiments were also driven by a jump in steel and raw material prices in China and Japan. Iron ore prices hit an 11-year high surpassing $175-176/mt cfr China for 62pc Fe content as mills resumed spot bulk iron ore purchases post-holidays. Japanese sellers were bullish with Tokyo Steel announcing successive price hikes. 
  • The Davis Index for containerized shredded, Friday, cfr Chattogram, up by $43.75/mt from Feb 12. With some offers at even higher levels.
  • Brazilian sellers have resumed exports to Bangladesh on higher bids. The daily Davis Index for US-origin and Latin America origin containerized HMS 1&2 (80:20) Friday cfr Chattogram, up by $2.19/mt and by $2/mt.
  • UK yards stayed away from negotiations as freight charges remain elevated. The weekly index for P&S was up by $42/mt; while that for #1 busheling cfr Chattogram, up by $35/mt on Friday.
  • The weekly index for ship scrap equivalent to P&S rose by BDT1,250/mt ($15/mt) ex-works. Improved vessel cutting rates could ease the shortage of domestic scrap in the coming days. For shipbreakers, offers for vessels were up by $20/ldt from the prior week. 
  • Domestic billet traded with its index rising BDT2,000/mt from the prior week. The index for large steelmakers’ rebar, Friday, rose BDT500/mt ex-works. Mills cancelled discounts amid rising imported scrap prices and intend to hike steel prices in the coming days. 
  • The index for rebar from medium-scale mills in Dhaka rose BDT2750/mt ex-works. ($1=BDT84.75)

 

Metallics

 

CIS 

  • The weekly Davis Index for CIS basic pig iron increased by $10/mt fob Black Sea on Friday amid new deals in Turkey and Italy.
  • Exporters continued booking small cargoes (5,000-10,000mt) to Turkey and achieved higher prices in a busy pig iron market. An uptrend in ferrous scrap and steel product segments supported the increase in pig iron prices. 
  • A Russian supplier sold basic pig iron at $520/mt fob Black Sea and semi-nodular pig iron at $545/mt fob for distribution, mainly to foundries. A Ukrainian supplier was heard to have closed a deal at $530-535/mt cfr Turkey.
  • The weekly Davis Index for CIS pig iron rose by $12/mt cif Italy on Friday amid existing demand. A Ukrainian exporter sold two cargoes of the material at around $535/mt cfr to different traders during the week. 

 

US

  • The weekly Davis Index for basic pig iron (BPI) increased by $7/mt cfr New Orleans port as offer prices increased after recent transactions to Turkey and Italy concluded at higher prices.
  • The latest US BPI deals transacted earlier this month for discounted material from South Brazil at $500/mt cfr Nola. That followed a cargo of BPI from a CIS producer selling to the US at $510/mt cfr Nola from the Baltic Sea for May shipment. 
  • Offer levels and next deals are projected at $530-535/mt cfr Nola. Ocean freight has increased substantially supporting higher import prices to the US. Considering the current freight rates and sale prices to other locations, US BPI imports could compare at $530-540/mt cfr, although buyers hesitated to purchase at these numbers and await further cues next week.
  • After pig iron prices peaked in mid-January, new activity decelerated and offers reduced to some extent. Meanwhile, buyers have been bidding far lower over the past two weeks for BPI cargoes as domestic sentiment and prices fell further than anticipated during February trading. 
  • The Davis Index for nodular pig iron (NPI) imports increased by $8/mt cfr Nola. There has been low activity for the grade and availability is tight, but the latest offers and bids heard for NPI have ranged from $575-580/mt cfr Nola with delivery in May or late Q2.
  • The weekly Davis Index for US hot briquetted iron (HBI) imports increased by $7/mt cfr Nola. Offers or bids have not been reported recently, however, the price estimation for the material has been adjusted based on consumer interest levels and price movements for comparable grades.

 

India

  • The index for Sponge iron in the Mandi Gobindgarh market increased by Rs900/mt this week. In Mumbai, the index for Sponge iron increased by Rs1,750/mt this week.

 

India semi-finished and finished steel

  • The daily Davis Index for billet in Mumbai surged by Rs2,500/mt ($34.4/mt) from the prior week amid a rise in imported scrap prices along with a similar rise in rebar prices. The index for rebar rose Rs1,700/mt ex-works Mumbai. 
  • In Raipur, the daily index for billet rose Rs2,500/mt from the prior Friday in-line with the rise in rebar prices. The daily index for rebar rose Rs2,500/mt amid healthy sales.
  • In Mandi Gobindgarh, the daily index for ingot increased by Rs800/mt ($11/mt) from the prior week in-line with a rise in local scrap prices.
  • In Chennai, the bi-weekly index for billet surged by Rs3,500/mt ($48.2/mt) on Thursday compared to the previous week on account of an increase in imported and local scrap prices, along with good demand for rebar. 
  • In Kutch, the bi-weekly index for billet rose Rs2,000/mt ($27.5/mt) on Thursday compared to the previous week. ($1=Rs72.5) 

 

Shipbreaking 

  • Shipbreaking prices rose amid increased demand from re-rollers in Mandi Gobindgarh and Gujarat. The daily Davis Index for 12Ani rose by Rs2,100/mt compared to the prior week.
  • The daily Davis Index for 2kg plates rose by Rs2,350/mt from the week prior amid rising demand for finished steel from the infrastructure sector. 
  • Rising imported scrap prices and a supply crunch in the domestic scrap market, pushed mills to buy rolling scrap. The Davis Index for HMS attachments and Melting rose by Rs2,500/mt each from the prior week.

 

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