Ferrous Market Update 02/26/2021
- The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) increased by $1.72/mt on Friday amid a buying spree in the country.
- Turkish mills purchased more than 10 deep-sea cargoes during the week, with half the volume scheduled to be shipped in March. Demand for imported material remains high as producers require around 40 cargoes for April shipment.
- Suppliers are bullish and believe prices will breach the previous high of $482.5/mt cfr for HMS 1&2 (80:20) from early-January. Soaring bulk freight rates are another driving factor, with 40,000mt-sized vessels now closing in on a $40/mt freight cost from New York to Turkey, up from $23/mt in January.
- Baltic offers are now at around $460/mt cfr for HMS 1&2 (80:20), while one US exporter has offered HMS 1&2 (90:10) at $475/mt cfr.
- The most recent contract in Turkey was signed between a Baltic recycler and a Marmara-based mill at $456/mt cfr for HMS 1&2 (80:20) on Feb 26, but further details were not available at the time of publication.
- New transactions were also reported in the Azov-Black Sea basin where a supplier from Russia (Rostov-on-Don) sold A3 at $452/mt cfr Turkey and an exporter from Romania traded HMS 1&2 (80:20) at $440/mt cfr Turkey.
- Asia bulk markets have also recorded significant gains in the past week with a US cargo into Vietnam concluding at above $460/mt cfr on a heavy melt basis. Bulk shred to Bangladesh is now on offer at $490-495/mt cfr, with bids at $480-485/mt cfr.
- Scrap price increases have also been supported by rebar sales. The daily domestic spot rebar prices in Turkey surged by TRY170-180/mt ($23-24/mt) on Friday, and exported rebar prices increased by $5/mt.
- Icdas raised its local rebar prices by TRY190/mt ex-works including 18pc VAT and opened sales in Biga and Istanbul. ($1=TRY7.43)
- The weekly Davis Index for DKP scrap in Turkey increased by TRY43/mt ($6/mt) on Monday amid better demand and higher prices for imported material and steel products.
- Purchase prices for shipbreaking scrap in the Izmir region rose by $15/mt over a week in a bullish market. ($1=TRY7.05)
- The weekly Davis Index for A3 scrap increased by $7/mt in the Baltic Sea and by $14/mt in the Black Sea on Monday as trading prospects improved.
- Deals were missing despite the improvement in ferrous scrap prices in the Russian export market because most suppliers held off on negotiations in anticipation of a further uptrend.
- Sellers from St Petersburg and Rostov-on-Don targeted $10-20/mt higher than the most recent sale from the USA, which was reported at an equivalent price of $435/mt cfr for HMS 1&2 (80:20). Russian exporters cite slow collection, high export duty, and more expensive freight rates as reasons to increase their offers.
- Ferrous scrap inflow was sluggish to Russian docks amid severe winter weather. The weekly Davis Index for HMS 1&2 (80:20) or A3 material rose by RUB1,700/mt ($23/mt) in St Petersburg dock on Monday but held unchanged in Rostov-on-Don. ($1 = RUB74.44)
- The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region increased by €14/mt ($17/mt) on Tuesday in a bullish export market.
- Collection prices for ferrous scrap rose in the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) as suppliers closed deals at higher prices to foreign outlets.
- European exporters were targeting $430-440/mt cfr Turkey for HMS 1&2 (75:25) on Tuesday, while on Feb 15 a German recycler sold 26,000mt of the same grade at $410/mt cfr and 4,000mt of bonus material at $425/mt cfr to a large Turkish mill. Another supplier was heard to have reached an agreement with an Egyptian importer last week. (€1 = $1.21)
- Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices were unchanged over the past week.
- UK dockside purchase prices plateaued with most bulk processors still able to procure sufficient volumes without having to raise rates, despite the recent strength in major export markets.
- Turkish HMS 1&2 (80:20) import benchmarks jumped by $21/mt over the past week to $434.84/mt cfr Turkey on Feb 22. At the same time, two separate UK-based traders were heard to have had booked trial batches of containerized ferrous scrap to China in the past 24 hours.
- Many UK bulk exporters are rumored to be holding sufficient stocks to meet this modest rebound in orders.
- The weekly indices for north and south UK OA (Plate & Structural), as well as UK 5A/5C (frag feed), were unchanged on Feb 23. (£1=$1.41)
- Davis Index’s weekly northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices jumped by €22/mt cfr ($27/mt), respectively, over the past week.
- Spanish HMS 1&2 (80:20) import benchmarks extended recent increases, as prices largely tracked developments in competing major deepsea trade routes.
- Turkish HMS 1&2 (80:20) import prices have jumped by $33.43/mt over the past week after a flurry of new bookings. Shortsea small bulk ferrous scrap coaster rates have increased in tandem also driven by relatively firm demand from Spanish buyers.
- A UK-based trader sold one cargo early this week and was contacted with new bids for follow-up delivery.
- Another UK ferrous scrap supplier noted that Spanish mills needed more material and that they would have to buy now.
- It is also likely that some Spanish consumers want to buy cargoes now before prices escalate and eat away precious steel margins.
- Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices increased by €17/mt fob, respectively, on Feb 26. (€1=$1.21)
- US East Coast ferrous scrap dock collection prices climbed by around $5/gt but were flat at Houston dock. Export activity has picked up since last week, though inclement weather and stronger price expectations for March have slowed scrap movement.
- Dockside #1 HMS was transacting flat at $320-335/gt for most sellers in East Coast export yards on Tuesday.
- Price increases for both exports and bulk export yards are anticipated later this week into next week. Domestic ferrous may also gain $20-30/gt or more for secondary grades next week. Mills are projected to have strong scrap buying programs in March while exports have been trending up for the past two weeks, also driving price gain expectations.
- In Boston, the weekly Davis Index for export yard #1 HMS, P&S 5ft, and shredder feed increased by $4/gt, $5/gt, and $10/gt delivered Boston export yard, respectively.
- The weekly Davis Index for export yard buying prices in New York moved up by $3/gt for #1 HMS by $5/gt for P&S 5ft and by $7/gt delivered for shredder feed.
- In Philadelphia, the Davis Index for export yard collection prices of #1 HMS, P&S 5ft, and shredder feed increased by $5/gt, $3/gt, and $10/gt delivered dock, respectively.
- The weekly Davis Index in Houston remained unchanged for #1 HMS, P&S 5ft, and shredder feed. Houston is recovering from extreme weather and resulting logistic issues, which paused dockside activity while the focus shifted to domestic obligations.
- US West Coast weekly export yard ferrous scrap prices inched up in Portland, Los Angeles, and San Francisco.
- Cold weather conditions that are affecting the Pacific Northwest, Southeast, and South have reinforced the previously anticipated increase in March domestic scrap prices. Prices of #1 busheling may also increase in tandem, given the increase in the grade’s futures market, tight supply, robust demand, and strong HRC prices.
- In Asia, increases in billet and finished steel prices along with rising demand in China, Taiwan, Thailand, and Vietnam are supporting higher import scrap offers. Domestic prices have increased in South Korea and Taiwan this week on limited availability and strong demand. Scrap offers may increase in March for the domestic and import markets supported by historically high iron ore prices.
- Japanese domestic scrap prices are also supporting rising export scrap offers with market participants anticipating further increases from Japanese exporters, which could support higher US scrap offers. An increase in bids from regional buyers such as South Korea, Vietnam, and Taiwan will put additional pressure on global scrap prices.
- In Portland, the Davis Indexes increased for #1 HMS by $8/gt delivered while P&S 5ft and shredder feed improved by $10/gt, and $6/gt, respectively.
- Some scrap dealers continued receiving January prices on scrap as others began increasing their buying prices. The region was hit with snowstorms that affected flows and production at scrap yards. A large dock was heard increasing effective prices by $15/gt and potentially raising those prices again by March 1.
- The weekly San Francisco indexes for #1 HMS increased by $1/gt delivered and P&S 5ft rose by $2/gt delivered. The shredder feed index trended flat.
- The weekly Davis Indexes for dock prices in Los Angeles encountered a second consecutive week of inclines with the index for both #1 HMS and P&S 5ft rising by $2/gt. Shredder feed inched up by $1/gt delivered. Dock buying prices have increased within the previous range for some feeder yards.
- US containerized scrap prices climbed for the third successive week accumulating robust increases in February.
- The upward movement is supported by demand from Asia, Chinese activity in the steel markets, higher ferrous import prices, pressure on domestic scrap supplies globally, and stronger finished steel demand. These global cues along with higher Turkish import prices are pushing the uptrend in the US export ferrous market.
- Bookings are thin from Asia but ferrous scrap prices are rising on higher offers and expectations of increased interest. Inquiries from India have increased over the past week and Japanese export offers, an alternative to US-sourced ferrous scrap, have been heard rising by $30-40/mt against the prior week. Chinese traders have been heard seeking P&S 5ft and shredded grades urgently and are willing to pay higher prices to compete against other buyers.
- Tight container availability and high freight prices continue affecting the market as pricing depends on booking and container lines. Some market participants commented that scrap yards are caught between the availability of bookings and immediate loading versus an evaluation on price negotiated.
- The weekly Davis Indexes in New York for containerized #1 busheling and shredded rose by $23/mt, respectively. HMS 1&2 (80:20), P&S 5ft, and machine shop turnings increased by $28/mt, $21/mt, and $29/mt, respectively.
- In Los Angeles, the weekly Davis Indexes leaped for #1 busheling by $44/mt and for HMS 1&2 (80:20) by $39/mt. P&S 5ft and shredded both increased by $40/mt.
- The index for HMS 1&2 (80:20) in Los Angeles has risen by $67/mt since Feb 4. Busheling offers by some scrap dealers are $20/mt above the indexed price as US domestic mill prices via rail are more attractive than export at present.
- Several regional scrap dealers, given the upward price expectation for March, are holding on to scrap inventories for negotiations next week. Negotiations have the potential to close early next week in the $400-405/mt fas range on HMS (1&2) 80:20, dealers said adding that there was a possibility of prices climbing by another $10-15/mt next week.
- In San Francisco, the weekly indexes for #1 busheling rose by $45/mt and HMS 1&2 (80:20) increased by $47/mt. P&S 5ft and shredded rose by $49/mt fas each. Obtaining containers was a struggle in this market and some participants were focusing on fulfilling old orders this week.
- The Davis Indexes in Seattle increased for #1 busheling, HMS 1&2 (80:20), P&S ft, and shredded by $40/mt, $37/mt, $32/mt, and $33/mt, respectively.
- Mexico’s domestic ferrous scrap prices increased in the Central region and were mixed in the Bajío and North regions this week on higher demand.
- Mills consumed more scrap as they ramped up production during the week to make up for the lost time due to the natural gas shortage last week. Scrap prices are also expected to rise by $10-20/mt in early March in tandem with the anticipated increase in the US domestic ferrous scrap market, which may rise by $30-50/mt.
- In Central Mexico, the weekly Davis Indexes for #1HMS, P&S 5ft, shredded, machine shop turnings, and # busheling rose by MXN210/mt delivered Mexico consumer, respectively.
- In Bajío, the weekly Davis Index for #1 busheling rose by MXN50/mt delivered Mexico consumer, P&S 5ft moved up by MXN237/mt, and #1 HMS increased by MXN75/mt. Shredded remained unchanged and machine shop turnings fell by MXN450/mt delivered.
- In North Mexico, the weekly Davis Index for #1 busheling rose by MXN167/mt delivered Mexico consumer, and P&S 5ft and shredded moved up by MXN67/mt and MXN9,150/mt, respectively. Machine shop turnings fell by MXN250/mt delivered, and #1 HMS declined by MXN83/mt. ($1=MXN20.92)
- A shortage of domestic scrap in Japan and a rise in global scrap prices prompted exporters to raise offers but export deals were limited as bids lagged.
- Tokyo Steel raised prices for the second time this week. Effective Feb 27, the steelmaker raised ferrous scrap purchase prices by JPY1,000/mt ($9.4/mt) del Utsunomiya and Tahara plant, while prices for the other three plants were raised by JPY500/mt.
- Traders raised offers for HS by $10/mt cfr China. The index for P&S 5ft (small bulk) China port was up by $15/mt cfr.
- Exporters raised offers for #2 HMS by JPY1,000/mt fob from the prior week with the index rising by JPY1,250/mt fas. The index remained unchanged on a fob basis.
- Bids for Japanese #1 busheling (Shindachi) rose by JPY1,500/mt fas from a week ago. The weekly index for the grade rose by JPY1,625/mt fas Japan but remained unchanged on a fob basis.
- The weekly Davis Index for HS and shredded, Wednesday, rose by JPY1,500/mt fas. 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 on Wednesday. After Kansai and Kanto tenders this month, the index for the grade rose by $27/mt cfr Haiphong. Buyers resisted offers.
- In Taiwan, the index for Japanese HMS 1&2 (50:50) rose by $32/mt cfr. Offers rose by $30/mt from the prior week.
- Buyers from Vietnam, South Korea, and Taiwan have either paused bookings amid elevated offer levels or tried to negotiate for trades at last week’s price levels. ($1=JPY106)
- Containerized imported ferrous scrap prices increased this week amid rising offers, short supply of scrap, and container shortage in most exporting countries. Mills stayed away from containerized purchases after a bulk deal for HMS 1&2 (80:20) from the US heard late last week.
- Exporters from USWC raised offers for bulk HMS 1&2 (80:20) by $20-30/mt from the prior week. Offers are expected to rise on strong demand and global scrap shortage. A few buyers raised bids to secure material in anticipation of a further rise next week. Many steel mills in East Asia have resumed buying after annual maintenance.
- The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, rose by $51/mt from the prior week cfr South Korea. Bids rose by $40-50/mt cfr.
- The weekly Davis Indexes for P&S 5ft and #1 HMS, Wednesday, rose by $51/mt and $52/mt cfr South Korea, respectively. The index for shredded rose by $52/mt cfr.
- The Davis Index for domestic Heavy A rose by KRW10,000/mt ($9/mt) del Incheon and Pohang. Few mills have raised bids for domestic scrap as yards refused to sell at lower prices on firm global ferrous scrap demand. Most mills are expected to refill inventories and offers are expected to rise on tight domestic supplies.
- The weekly Davis Index for domestic Light A remained flat del Pohang mill. ($1=KRW1,123.5)
- The Davis Index for containerized US-origin HMS 1&2 (80:20) was flat this week. US-based exporters raised offers amid firm iron ore prices and a rise in finished steel demand. The index rose by $41/mt over the week from February 18.
- The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling rose by $33/mt, $37/mt, $29/mt, and $35/mt cfr, respectively. Mills have turned cautious amid a rise in offers for Japanese ferrous scrap.
- On Wednesday, steelmaker Feng Hsin raised ferrous scrap bids by TWD1,000/mt ($36/mt) from the prior week and opted for domestic scrap instead of imported. The weekly Davis Indexes for domestic HMS 1&2 (80:20) rose this week by TWD1,000/mt del South Taiwan and North Taiwan mills. Rising international scrap prices have prompted most mills to start negotiation for domestic and imported scrap after maintenance work during holidays.
- Taiwanese importers state that domestic scrap is still cheaper than imported but supply remains tight. ($1=TWD27.8)
- In China, Shagang Steel held ferrous scrap purchase prices amid strong domestic demand and high finished steel inventories.
- Iron ore prices rose this week by $10/mt from the prior week.
- The index for P&S 5ft (small bulk) China port increased by $15/mt cfr over the week.
- The weekly Davis Index for the HMS 1&2 (80:20) settled up by CNY50/mt ($7/mt) delivered mill. Steel prices are expected to rise further amid a positive demand outlook and successful vaccination drives, globally.
- In Tangshan, Q235 150mm square billets rose by CNY400/mt due to a rise in domestic and global demand for finished steel. Many mills are expected to raise billet prices further due to low inventories and rising raw material costs.
- China will speed up recycling and utilization of renewable resources such as metals scrap to meet its carbon neutrality goal as per the State Council on Monday, which is expected to push demand.
- Japanese HS scrap offers rose by $10/mt from the prior week. ($1=CNY6.5)
- Vietnamese mills raised bids after the holidays. Most steelmakers preferred to buy bulk scrap due to the short supply of empty containers. Offers for Russian 3A scrap were up by $19/mt from the week prior. A bulk scrap deal of HMS 1&2 (80:20) from USWC was heard late last week at $440/mt cfr. Offers rose to $470/mt cfr and bids were at $460/mt cfr on Thursday.
- Offers for Japanese HS rose by $30-40/mt cfr from the prior week. Mills are cautiously checking Chinese and Turkish buying prices before booking more material. South Korean offers for P&S rose by $30/mt cfr China from prior deals.
- In the containerized scrap market, the weekly index for US-origin HMS 1&2 (80:20) increased by $35/mt cfr Vietnam.
- The weekly indexes for P&S 5ft and shredded rose by $40/mt and $39/mt cfr, respectively, on Thursday, amid rising offers. In the bulk market, offers for Hong Kong HMS 1&2 (50:50) rose by $25-30/mt.
- The weekly Davis Index for HMS 1&2 (80:20) rose by VND350,000/mt ($15/mt) del South Vietnam, inclusive of taxes. With a rise in HRC price following recovery in the auto sector, traders expect bids to rise higher in the short term. ($1=VND23,080)
- Indonesian mills have started raising bids and some tonnages were booked this week. Buyers are cautious of new bookings as many yards are still to complete export registration. Traders said Indonesia has emerged as a preferred destination for scrap exports from the US due to better freight rates.
- The weekly Davis Index for HMS 1&2 (80:20) rose by $37/mt cfr Jakarta. Mills preferred ferrous scrap from Malaysia and Hong Kong for immediate requirements.
- The indexes for P&S 5ft and shredded rose by $45/mt cfr Jakarta each.
- The weekly Davis Index for #1 busheling rose by $35/mt cfr. Few deals for Malaysia busheling were at prices up by $15/mt from the prior week.
- The weekly Davis Index for domestic HMS 1&2 (80:20) del Rayong mill settled flat inclusive of taxes, amid limited deals. Price fell by $2/mt due to currency depreciation. Mills are opting to wait or buy cautiously amid rising offers. Steel mills are expected to raise bids as they restock scrap anticipating a rise in steel demand.
- Mills preferred domestic scrap or imported billets due to rising raw material prices. Container shortage and vessel delays added to the woes of steel mills interested in short transit imports.
- Billet prices rose by $20/mt cfr Southeast Asia. ($1=THB30)
- The weekly indexes for HMS 1&2 (80:20) rose by MYR10/mt($2.5/mt) del Western mills and MYR5/mt del Eastern mills, inclusive of taxes.
- Malaysian steelmakers are cautious amid an extension of lockdown in Malaysia due to COVID-19 and rising global scrap prices. Trades slowed with offers for US-origin HMS 1&2 (80:20) in FEUs going up by $10/mt from the prior week. Traders expected an MYR50-100/mt rise this week as global scrap prices remained firm. ($1=MYR4)
- Imported ferrous scrap offers in India stayed bullish on global cues. Secondary mills sought lower-priced scrap despite the resumption of rebar and billet exports boosting seller sentiment.
- Only some alloy makers booked shredded.
- The Davis Index for UAE-origin HMS 1&2 (80:20) cfr Nhava Sheva rose by $13/mt from a week ago. But some Dubai-based suppliers were desperate to sell the materials amid extended silence from buyers. The Davis Index for US-origin HMS 1&2 (80:20), Friday, rose $10/mt from February 19. Offers have gone up by at least $30/mt from the prior week in the US fas market but Indian mills resisted the price hike.
- Prices of higher grades like busheling and P&S remained unviable for Indian mills. The indexes for these grades rose $21/mt and $31/mt, respectively, amid high offers.
- Despite the fear of another wave of COVID-19 and related restrictions in major scrap markets, the shortage of materials kept prices firm.
- Chinese HRC prices rose amid rising futures despite the heavy piled-up of inventories at mills. Australian iron ore of 62pc Fe content rebounded to reach above $175/mt cfr China on Friday.
- Billet offers were neared $600/mt cfr Southeast Asia on Friday. Iranian mills sold billet at prices $18-20/mt higher than prior deals. ($1=Rs74.09)
- Domestic ferrous scrap prices in India remained firm following global cues. Sustained demand for finished and semi-finished steel also gave prices a lift.
- In Mumbai, the index for HMS 1&2 (80:20) rose by Rs500/mt delivered mill from last Friday, while in Mandi Gobindgarh, it rose marginally by Rs50/mt delivered mill. Mills have largely focused on domestic scrap purchases over imported material as they found the latter unviable amid rising prices and vessel delays as well as container shortages.
- Pakistani mills slowed purchases of imported ferrous scrap due to a continuous rise in offers. Typical of a month-ending trend, mills focused on settling electricity and utility bills.
- On February 25, the customs department enforced new regulation to consider replacement of fixed (ITP) import tariff on steel scrap and compressor scrap imports by a metal price reporting agency, London Metal Bulletin pricing. The landed cost for ferrous scrap is expected to rise by PKR1,500/mt in the coming days.
- The Davis Index for containerized shredded, Friday, increased by $11.43/mt from the prior week, consequently, trades slowed.
- The daily index for US-origin HMS 1&2 (80:20) cfr Port Qasim was up by $5/mt from Thursday amid firm offers and a healthy domestic outlook for March. But buyers’ interest was limited due to the long transit period for the US materials and uncertainties about timely delivery of the shipments due to logistic challenges at transshipment ports.
- Following a global trend, prices for #1 HMS and P&S from UAE rose by $15-25/mt depending on quality.
- The weekly Davis Indexes for P&S 5ft and #1 busheling cfr Port Qasim, up by $25/mt and $15/mt, respectively. Only some buyers were willing to negotiate for premium grades amid a sharp jump in prices and limited offers in the market.
- Bala billet prices maintained their uptrend and the weekly index for domestic Bala billet rose by PKR1,000/mt ($6/mt) ex-works.
- The weekly Davis Index for rebar rose by PKR5,250/mt ex-works Karachi, while in Punjab, the index increased by PKR3,250/mt ex-works.
- On short supply, the weekly index for Art Pure Q toke scrap equivalent to a mix of HMS and P&S increased by PKR500/mt ($4/mt) ex-yard Lahore.
- Availability of shipbreaking melting scrap at $15-20/mt lower than imported material encouraged buyers for trades. ($1=PKR157.9)
- Bangladeshi mills actively raised inquiries to secure additional inventories before prices move up further. Demand outlook remained strong on ongoing peak construction season. Sentiment strengthened by global cues with Turkey resuming bulk scrap trades and Chinese mills restocking billets.
- Container freight charges could see another hike effective early March, which led to the withdrawal of some offers on the lower end of the spectrum from the market.
- The Davis Index for containerized shredded, Friday, rose by $16.43/mt from last Friday, Feb 19. Prices are close to early January peak and could chart new highs next week, claim traders.
- Japanese sellers were bullish with Tokyo Steel raising scrap bids twice during the week while rising Chinese inquiries.
- The daily index for HMS 1&2 (80:20) from Latin America on Friday was up by $7/mt. There were several small tonnage trades for lower-priced material from Brazil, Trinidad, the Caribbean, and Central America.
- The daily Davis Index for US-origin containerized HMS 1&2 (80:20) rose by $16.96/mt from a week ago. Offers were high amid a strong outlook for the March domestic market.
- The index for P&S increased by $24/mt; while that for #1 busheling was up $25/mt on Friday.
- The weekly index for ship scrap equivalent to P&S rose by wBDT1,295/mt ($18/mt) ex-works. Buyers opted for domestic ship scrap for faster delivery time.
- The index for domestic billet index jumped by BDT2,250/mt ex-works Chattogram from the prior week. The index for large steelmakers’ rebar, Friday, rose BDT1,500/mt as mills canceled discounts amid rising imported scrap prices and intend to hike steel prices in the coming days. ($1=BDT84.72)
- The weekly Davis Index for CIS basic pig iron rose by $7/mt on Friday amid robust trading. A price increase in ferrous scrap and steel products supported the uptrend for pig iron.
- Pig iron buyers around the world were active and accepted higher prices at the end of February. A Russian supplier sold 50,000mt of the material at $550/mt cfr to the USA, and after this transaction, other CIS exporters raised offers to $570/mt cfr.
- The weekly Davis Index for CIS pig iron in Italy rose by $18/mt on Friday on new deals. A Ukrainian exporter sold a cargo at $550/mt cfr at the beginning of the week and another one at $555/mt cfr at the end of it. The material is assigned for distribution. Last week, CIS pig iron changed hands at $535/mt cfr in Italy.
- Turkey continued to purchase pig iron from the CIS. Thus, a Ukrainian supplier sold 5,000-10,000mt at $560/mt cfr for distribution, and a Russian exporter traded 5,000mt of the material at $550/mt fob for foundries.
- The weekly Davis Index for basic pig iron (BPI) increased by $24/mt cfr New Orleans port on Friday as fresh deals concluded at higher prices originating from both the CIS and Brazil.
- The most recent transactions include a BPI cargo from the CIS priced at $550/mt cfr Nola for April shipment and a few of discounted deals from South Brazil at $530-535/mt cfr Nola for high phosphorus, reduced quality material.
- A similarly priced sale from Italy to Ukraine was also reported this week at $550/mt cfr. Meanwhile, Chinese bids to CIS producers are below the current price trends, at $480-485/mt fob, which equates to $525-530/mt cfr.
- Additional bids and offers for BPI to the US range from $550-570/mt cfr Nola with further upside potential in March as domestic ferrous pricing is forecast to increase as well. Sources feel that scrap alternatives may increase by $20/mt in the next week or so.
- The Davis Index for nodular pig iron (NPI) imports increased by $15/mt cfr Nola. There has been no new activity for this grade, but the latest offers and bids heard for NPI have ranged from $585-595/mt cfr Nola, with the possibility to move higher.
- The weekly Davis Index for US hot briquetted iron (HBI) imports increased by $13/mt cfr Nola. New offers or bids have not been heard lately, however, the price estimation for the material has been modified based on price movements for similar grades along with the latest consumer interest levels.
- From last week, the indexes for Sponge iron rose by Rs850/mt del Mandi and Rs200/mt del Mumbai mill. Prices rose fuelled by a rise in iron ore prices. In the international market, iron ore prices increased by $10/mt in a week. Mills opted for scrap instead of Sponge iron due to its unavailability.
India semi-finished and finished steel
- The index for rebar in Mumbai increased by Rs500/mt ($7/mt ex-works from last Friday due to robust sales. The index for billet increased by Rs300/mt ($4/mt) ex-works on elevated imported scrap prices.
- In Raipur, the index for billet was up by Rs300/mt ex-works from the previous Friday following a rise in rebar prices. In Mandi Gobindgarh, the index for ingot remained unchanged from the previous Friday.
- In Chennai, the bi-weekly index for billet surged by Rs1,000/mt ($14/mt) ex-works on Thursday compared to the previous week.
- In Kutch, the bi-weekly index for billet was up by Rs700/mt ($10/mt) ex-works compared to last Thursday. ($1=Rs74.09)
- Shipbreaking prices witnessed rose on Friday aided by healthy demand in Mandi Gobindgarh and Gujarat.
- The index for 4Ani rose by Rs250/mt from the prior week, while that for 0.5kg and 1kg plates rose by Rs750/mt ex-Alang. Prices rose amid improved demand for finished steel supported by infrastructure push.
- The Davis Index for HMS attachments and Melting rose by Rs750/mt. Shipbreakers indicated positive sentiment.