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Ferrous market update: March 8-12

Ferrous Market Update 03/12/2021

 

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) slipped by $0.50/mt cfr on Friday on a new booking from the Baltic region.
  • An Iskenderun-based integrated steel mill purchased 28,000mt of HMS 1&2 (80:20) at $460/mt cfr and 7,000mt of bonus material at $470/mt cfr from a Latvian supplier on Mar 5.
  • US exporters are absent from the bulk market to Turkey as they wait for the US domestic markets to settle. Mills in the US kicked off March trade with increases of $50-70/gt in Detroit, while in other regions mills have attempted to secure lower increases.
  • With Turkish mills bidding for material in a $460-465/mt cfr range, suppliers have looked to other markets. A Venezuelan cargo was sold to Italy at $465/mt cfr for HMS 1&2 (80:20), which normalizes to around $470/mt cfr Turkey.
  • US West Coast and Australian bulk shippers have recorded strong sales to Vietnam, which booked three cargoes from the US and one from Australia at shredded scrap price levels of $465-477/mt cfr. The two most recent deals concluded this week, were booked at $474/mt and $477/mt cfr.
  • For shippers to Turkey, the short sea market has been active from the Azov-Black Sea basin. Romanian-origin HMS 1&2 (80:20) traded at $430-440/mt cfr during the week and Turkish mills booked more than 30,000mt in small vessels over the past week.
  • Daily rebar export prices fob Turkey were flat on Friday, while daily domestic spot rebar prices increased by TRY10-50/mt ($1-7/mt) ex-works, including 18pc VAT.
  • Icdas raised its local rebar prices by TRY20/mt ex-works Biga and Istanbul including 18pc VAT. ($1=TRY7.53) 

 

Turkey domestic

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey surged by TRY434/mt ($60/mt) on Monday on increases in imported scrap and Turkish rebar prices.
  • Purchase prices for shipbreaking scrap in the Izmir region rose by $35/mt over a week amid positive market sentiment. ($1=TRY7.26)

 

CIS

  • The weekly Davis Index for A3 scrap in Russia’s Baltic Sea region rose by $18/mt on Monday and by $24/mt in the Black Sea region on higher prices in new transactions.
  • Business activity revived significantly at the end of February after some Russian exporters chose to sell to Turkey, amid stronger demand and acceptable price levels. A supplier from St Petersburg closed a deal with a Turkish mill at $452.50/mt cfr for HMS 1&2 (80:20) and at $462.50/mt cfr for bonus material. A day earlier, a recycler from Kaliningrad agreed to ship the same material at around $450/mt cfr Turkey. 
  • Trading also resumed in Rostov-on-Don, where an exporter sold an A3 scrap cargo at $452/mt cfr Turkey.
  • Turkish importers are still actively looking for material because of which, Russian suppliers raised their targets to a minimum of $460/mt cfr for HMS 1&2 (80:20).
  • Collection prices for ferrous scrap increased in a firm export market. The weekly Davis Index for A3 scrap jumped by RUB2,325/mt ($31/mt) delivered St Petersburg dock and by RUB1,250/mt ($17/mt) delivered Rostov-on-Don dock. ($1 = RUB74.01) 

 

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region rose by €16/mt ($19/mt) on Tuesday amid an uptrend in the export market.
  • Exporters from the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) raised collection prices amid a positive market sentiment as Turkish importers accepted higher prices.
  • European exporters are targeting $450-455/mt cfr for HMS 1&2 (75:25) early this week as demand for the material persists in Turkey and many steelmakers require cargoes for April shipment. (€1 = $1.20)

 

UK dockside

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices increased by £10-13/mt ($14-18/mt) delivered dockside.
  • UK dockside ferrous scrap purchase prices rose after some bulk processors passed on a portion of relatively wider margins to merchant suppliers.
  • Most UK-based bulk exporters were heard to have raised dockside rates by £5-10/mt, while one large deepsea supplier was rumoured to have raised them by around £10-15/mt. A UK-based trader indicated that the large bulk processor had overpaid compared with the rest of the market as they were likely trying to secure volumes from a certain supplier.
  • The weekly indices for north and south UK OA (Plate & Structural) increased by £10-13/mt delivered dockside, respectively, during the week while north and south UK 5A/5C (frag feed) ferrous scrap indices climbed by £10/mt, over the same period. (£1 = $1.39)

 

Spain 

  • Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices declined by €10/mt ($12/mt) cfr, respectively on Friday.
  • Iberian ferrous scrap import prices dropped back €10/mt over the past week, largely tracking developments in major deepsea trade routes, particularly to Turkey.
  • For example, Turkish HMS 1&2 (80:20) import prices have scaled back by $17.50/mt in the past week to $447/mt cfr Turkey on Mar 11.
  • Shortsea small bulk coaster freight rates of €30-40/mt continue to be a bane for Spanish-based buyers, as it prices them out of the market.
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices increased by €9/mt fob, respectively, during the week.
  • With rumors of new deals to Turkey struck at approximately $435/mt there may be some further downside risk albeit temporarily, as the world enters the quarter of peak steel demand. (€1 = $1.19)

 

US dockside

  • US East Coast dock collection prices for ferrous scrap climbed for the fourth successive week on Tuesday amid domestic scrap price strength and continuing export activity, although the latter decelerated this week.
  • Houston dock prices have also risen, though they lag compared to other markets following delays from earlier weather issues. Houston dock prices are flat for now, but increases are expected in the near term. 
  • Dockside prices have risen by about $10-15/gt since Mar 2, based on dock location and prior price level. East Coast dock sales for #1 HMS are transacting between $340-370/gt, with remote material priced near $380/gt at various export yards. 
  • Exports have remained active with intermittent pauses in the past month. US HMS 1&2 (80:20) exports to Turkey increased by $58.08/mt in one month to $456.41/mt cfr on Tuesday, compared to a recent low of $398.33/mt cfr for HMS 1&2 (80:20) on Feb 9. 
  • Recent bids for US material have declined modestly as export destinations report rising material availability. Meanwhile, the shortage of prime scrap and increased domestic prices during March trading has added price pressure to all scrap grades in the US. 
  • In Boston, the weekly Davis Index moved up by $13/gt for #1 HMS $12/gt for P&S 5ft, and $17/gt delivered Boston export yard for shredder feed. 
  • The weekly Davis Index for export yard buying prices in New York increased for #1 HMS, P&S 5ft, and shredder feed by $12/gt delivered, $14/gt, and $13/gt delivered, respectively. 
  • In Philadelphia, the Davis Index for export yard collection prices of #1 HMS rose by $13/gt delivered. P&S 5ft increased by $14/gt delivered and shredder feed inclined by $14/gt. 
  • The indexes in Houston remained unchanged for #1 HMS, P&S 5ft and shredder feed.
  • Dock prices on the US West Coast trended sideways in Portland and Los Angeles but increased in San Francisco. Export demand has consistently firmed up over the past month.
  • West Coast market participants noted dockyards would continue buying scrap at higher prices to fill planned orders in March. Still, they remain concerned over deal prices and demand in the second half of March and in April given the latest development on iron ore prices, which has softened some overseas ferrous markets with deals on the West Coast experiencing a pause from Asian mills.
  • The recent increases in EU and UK dock prices slowed as Turkish mills rejected higher import scrap offers and South-Asian buyers lowered their bids. However, the fall in imported iron ore prices and buying import billing prices in China may place some pressure on sellers to concede to lower-priced deals. On the other hand, several market participants expect a steady demand for imported scrap from emerging Asian markets where domestic growth has continued to strengthen. 
  • In Japan, Tokyo Steel has kept its local buying prices unchanged but Japanese sales are facing limited growth in the domestic market. Japanese exporters may begin negotiating lower deals given the overall import expectations. Reduced export offers from Japan would also place pressure on the US exporters to soften prices. Moreover, as the weather improves, feedstock may increase scrap inventories and alleviate some pressure on the supply side. 
  • The weekly Portland Davis Indexes were rangebound with mild increases where #1 HMS climbed by $3/gt delivered, and both P&S 5ft and shredder feed rose by $2/gt delivered.
  • In San Francisco, the weekly indexes for #1 HMS climbed by $18/gt delivered, P&S 5ft rose by $15/gt, and shredder feed increased by $8/gt delivered. 
  • The weekly Los Angeles Davis Indexes at docks held unchanged for #1 HMS, P&S 5ft and shredder feed. 

 

US containers

  • US containerized ferrous scrap export prices fell on Thursday in tandem with a drop in iron ore prices after China issued steel production restrictions in the Tangshan province. 
  • The Asian country’s latest move has raised questions about the suspension being extended to other regions due to its environmental flagging systems. Iron ore import prices in China fell on Mar 9 but have since started to rebound.  
  • Turkey’s influence on the global scrap price dynamic has been evident as scrap import buying prices seem to be trending down.  
  • Inquiries on both coasts dropped as most participants preferred to wait and see the repercussions of China’s next move if any. Some buyers in New York and the East Coast, however, are aggressively bidding below the market indication levels with bids being heard as low as $385/mt fas for shredded scrap though sellers maintained offers firm at around $400-405/mt fas.  
  • Market participants expect some near-term volatility in scrap prices but believe they will remain strong due to a strong US domestic market, high steel prices, and solid global fundamentals. However, they remain uncertain about weaker demand and lower bids persisting amid seller resistance. 
  • Prices have dropped on the West Coast amid lower containerized scrap offers from Japan that reduced by $25-35/mt on lower domestic scrap prices and retreating Kanto auction rates, thus putting pressure on US export offers on the West Coast.  
  • Southeast Asian mills and traders have actively lowered bids on both bulk and container prices. Mills prefer bulk inquiries, due to the limited container access and high freight prices on containers, especially, given the slight downward adjustment on bulk prices this week. 
  • Asian mills have been heard increasing finished steel prices on strong demand despite some softness in imported billet prices to China. 
  • The weekly Davis Indexes for containerized scrap in New York dropped with #1 busheling and P&S 5ft falling by $18/mt fas, HMS 1&2 (80:20) declining by $22/mt, shredded decreasing by $20/mt, and machine turnings dropping by $27/mt.  
  • In Los Angeles, the weekly Davis Indexes decreased for #1 busheling by $44/mt as domestic mills in Texas and the central US purchased fewer than expected volumes and exporters reduced interest on high prices. HMS 1&2 (80:20) fell by $20/mt while P&S 5ft and shredded both decreased by $27/mt. The better grades at times have achieved an average $20-25/mt spread higher than HMS but the spread was narrowed to about $15/mt with the decline in inquiries this week.  
  • San Francisco’s weekly indexes decreased for #1 busheling, HMS 1&2 (80:20), P&S 5ft, and shredded by $42/mt, $20/mt, $28/mt, and $25/mt fas, respectively. 
  • In Seattle, the Davis Indexes moved down for #1 busheling, HMS 1&2 (80:20), P&S 5ft, and shredded by $32/mt, $15/mt, $22/mt, and $23/mt fas, respectively. 

 

Mexico

  • Mexico’s domestic ferrous scrap prices increased in the Bajío and Central regions on Friday after the US domestic market settled at up $50-70/gt earlier in the week. 
  •  Prices for prime grades such as #1 busheling increased by $70/gt in the US while cut grades such as #1 HMS rose by $50/gt from February settled prices.
  •  The Mexican scrap industry, which is the main supplier for the country’s automotive sector, is concerned about the repercussions of the 30pc decline in vehicle production over the past two months on scrap supply and demand. 
  •  The shortage in #1 busheling is also expected to continue, according to market participants.
  •  In Central Mexico, the weekly Davis Indexes for shredded and machine shop turnings rose by MXN250/mt delivered to Mexico consumer, respectively, while #1 busheling increased by MXN340/mt delivered, P&S 5ft climbed by MXN240/mt, and #1 HMS fell by MXN60/mt delivered.
  •  The weekly Davis Indexes in Bajío for #1 HMS, shredded, and machine shop turnings all rose by MXN204/mt delivered Mexico consumer while #1 busheling increased by MXN197/mt and P&S 5ft remained unchanged.
  •  In North Mexico, the weekly Davis Indexes remained unchanged for #1 HMS, shredded, machine shop turnings, P&S 5ft, and #1 busheling. ($1=MXN20.70)

 

Japan  

  • Ferrous scrap importers are realigning their bids to market sentiments post-Kanto tender. At Kanto, average bids for #2 HMS were at JPY42,976/mt, up JPY3,705/mt ($34/mt) from the prior tender in February. Winning bids bought 5,200mt at JPY43,060/mt fas, 5,200mt at JPY43,060/mt fas and 5,000mt at JPY42,800/mt fas.
  • Following the lower-than-expected rise in Kanto bids, Tokyo Steel cut scrap procurement prices, Wednesday, for Utsunomiya plant and on Friday for all plants by JPY500/mt ($4.6/mt), except Kyushu. Buyers expect a drop of JPY500-1,000/mt in bids from South Korea and other importing countries this week. Revised #2 HMS price delivered Utsunomiya plant was at JPY41,500/mt, JPY42,000/mt ($385/mt) delivered Tahara, JPY41,000/mt delivered Okayama, JPY41,000/mt delivered Kyushu, and JPY40,000/mt delivered Takamatsu.
  • Offers for HS fell by $5-10/mt cfr China with bids at $490/mt cfr on Wednesday. Early in the week, Chinese mills halted booking as they awaited Kanto results. The index for P&S 5ft (small bulk) China port, Wednesday, rose by $4/mt from the prior week but fell by $5/mt from the prior day on bearish sentiments.
  • Exporters raised offers for #2 HMS by JPY500/mt from the week prior with the index rising by JPY500/mt fob on Wednesday. On fas basis, the index rose by JPY958/mt fas with deals heard on Kanto bid prices. Traders indicated importers are not keen on purchasing at current prices and expect offers to fall in the coming days on weak global cues.
  • Bids for Japanese #1 busheling (Shindachi) were unchanged fob but are expected to fall by JPY500-1,000/mt due to limited demand from importing countries and domestic steel mills. 
  • The weekly index for the grade rose by JPY62/mt fob Japan, while on a fas basis the index rose by JPY1,250/mt fas.
  • The weekly Davis Index for HS and shredded, Wednesday, rose by JPY1,000/mt fas, respectively. Limited trades heard as most mills adopted a wait and watch strategy ahead of Kanto tender. South Korean, Taiwanese and Vietnamese mills were closely watching Chinese purchases before negotiations.
  • Offers for HMS 1&2 (50:50) fell by $5/mt to $460/mt cfr Vietnam this week. After Tokyo steel lowered bids, the index for the grade fell by $4/mt cfr Haiphong.
  • In Taiwan, the index for Japanese HMS 1&2 (50:50) fell by $10/mt cfr. Offers fell by $10/mt to $450/mt cfr. Export bids were held back to analyze Kanto results. Low domestic scrap demand and shutting down of a blast furnace by Nippon steel added to the bearish market sentiment.
  • Traders expect a fall in global ferrous scrap prices next week on improving supplies. ($1=JPY109)

 

South Korea  

  • The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, fell by $5/mt from the prior week cfr South Korea. Bids fell by $5/mt cfr on Wednesday from the prior week, while offers declined by $10-15/mt with suppliers trying to clear off inventory in anticipation of a further fall in global scrap prices. 
  • Early in the week, limited deals were heard at $425/mt cfr, but mills stepped back in anticipation of a further fall this week. With easing supplies, yards were keen on offering more volumes, but buyers exercised restraint. 
  • The weekly Davis Indexes for P&S 5ft and #1 HMS, Wednesday, fell by $14/mt and $7/mt cfr South Korea, respectively. The index for shredded fell by $/10mt cfr from the prior week. 
  • Daehan steel reduced bids by JPY500/mt to JPY42,500/mt ($389.6/mt) fob this week and Hyundai reduced them to JPY42,000/mt fob post-Kanto tender.
  • The Davis Index for domestic Heavy A rose by KRW11,250/mt ($9.9/mt) and KRW37,500/mt delivered Incheon and Pohang, respectively. Mills could reduce bids in the coming days due to piled-up inventory and weak global cues.
  • The weekly Davis Index for domestic Light A rose by KRW35,000/mt delivered Pohang mill. ($1=KRW1,137)

 

Taiwan  

  • The Davis Index for US-origin containerized HMS 1&2 (80:20), Friday, fell by $10/mt to $419/mt cfr Taiwan with bids dropping to $410/mt cfr amid sluggish demand. US-based exporters lowered offers to $425/mt cfr but buyers expected a further drop in prices. The index fell by $17/mt from the prior week (Mar 5).
  • Few Taiwanese mills lowered bids for Japanese HMS 1&2 (50:50) by $30/mt cfr amid falling domestic scrap prices in Japan. Traders said most mills are yet to bid and are cautious of falling scrap prices in the international markets. Importers are also tracking bids placed by South Korean and Chinese mills.
  • The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling fell by $15/mt, $11/mt, $11/mt and $15/mt cfr, respectively. Mills have turned cautious amid slow finished steel demand.
  • The weekly Davis Indexes for domestic HMS 1&2 (80:20) was flat delivered South Taiwan and North Taiwan mills, respectively. Feng Hsin raised bids by TWD200/mt ($7/mt) this week, while other mills kept bids lower in anticipation of a fall amid weak global cues. 
  • Taiwan’s ferrous scrap imports in February declined to 212,719mt, down by 42pc from the prior year, according to the country’s customs data. Scrap imports fell by 15pc from 2,50,633mt in January. The US was the top exporter with the shipment of 76,434mt, down by 49pc from 150,384mt in February last year and down by 18pc from 93,526mt in January. ($1=TWD28)

 

China

  • In China, Shagang Steel’s ferrous scrap purchase prices were flat this week, while iron ore 62pc Fe, Friday, fell by $16/mt cfr Qingdao to $170/mt from Monday, amid pollution-related production curbs. Chinese mills could focus on billet imports to fulfil domestic and international finished steel demand.
  • The weekly Davis Index for the HMS 1&2 (80:20) settled flat from the week prior. Price fell by $2/mt on account of currency depreciation. Steel prices are expected to be under pressure due to rising restriction and harsh weather.
  • In Tangshan, Q235 150mm square billets rose by CNY160/mt($24.6/mt) amid firm domestic demand. But with steel futures falling by 3-5pc, domestic billet prices are expected to be under pressure.
  • Japanese HS scrap offers remained firm at $505-515/mt cfr, Tuesday, while bids at $495-500/mt cfr. ($1=CNY6.5)

 

Vietnam 

  • Vietnamese mills lowered bids amid weak global cues. Mills still prefer bulk scrap due to a short supply of empty containers. Post Kanto tender, importers are cautious and waiting for prices to fall further. 
  • Mills are tracking Turkish and Chinese purchases, with the Turkish index for HMS 1&2 (80:20) falling by $17/mt to $447/mt cfr on Thursday from the prior week (Mar 5). 
  • In the containers market, the weekly index for US-origin HMS 1&2 (80:20) Thursday settled down by $5/mt cfr Vietnam from the prior week. Vietnamese mills bid at $430/mt, while offers remained at $435-440/mt.
  • The weekly index for P&S 5ft and shredded, Thursday, fell by $5/mt and $11/mt, cfr, respectively amid low bids from most importing destinations.
  • In bulk, offers for Japanese HMS 1&2 (50:50) fell by $5/mt from the prior week, while bids fell to $445-450/mt cfr. Two USWC bulk deals heard at $474/mt cfr and $477/mt cfr for shredded in the prior week.
  • Vietnamese steelmaker Formosa Ha Tinh (FHS) hiked its domestic hot-rolled coil (HRC) prices for April and May shipments on healthy demand and a positive outlook for HRC. The steelmaker has revised prices up by $45-50/mt after a gap of nearly two months. Formosa’s base price for SAE1006 HRC for April and May shipments would be the equivalent of $765/mt cif Haiphong and $770/mt cif Ho Chi Minh. 
  • The weekly Davis Index for domestic HMS 1&2 (80:20) was flat delivered South Vietnam inclusive of taxes. Prices fell by VND15,000/mt($0.64/mt) for northern mills. With sluggish finished steel demand in the domestic and export markets, steel mills were cautious of any scrap purchases. 
  • Most mills are negotiating for bulk over containerised due to a shortage of empty boxes in supplier destinations, but with bids falling from other countries, few deals were heard post-Kanto bids at JPY43,000/mt for #2 HMS. Bids are expected to fall further post-Hyundai bids at JPY42,000/mt fob. 
  • Low domestic scrap availability and anticipation of a further rise in prices prompted enquiries. Vietnamese mills were cautiously watching Turkish buying prices and Chinese bids for Japanese scrap.
  • A few deals for busheling heard at VND9,700,000/mt delivered South Vietnam on Tuesday.
  • In February, ferrous scrap imports into Vietnam decreased by 41pc to 321,623mt from the prior year, according to the country’s customs data. Ferrous scrap imports fell by 28pc compared to 413,248mt in January due to holidays and rising offers which were unviable for most Vietnamese mills. Imports from Australia were 43pc lower at 26,399mt from January. 
  • In terms of volumes, Japan remained the biggest exporter at 223,544mt, up 26pc from 177,175mt last month, but down by 37pc from 354,406mt in February 2020. ($1=VND23,278)

 

Indonesia

  • Indonesian mills limited bookings amid falling global ferrous scrap prices. Mills are also cautious of new bookings as many exporters are still processing export registration. Traders said that container shortage and reduction in Turkish and Chinese buying prices kept sentiment bearish. Mills preferred Malaysian busheling with bids at $445/mt and offers at $460-465/mt cfr.
  • The weekly Davis Index for HMS 1&2 (80:20) fell by $10/mt cfr Jakarta from the week prior. No deals were heard with bids falling in anticipation of a further dip in prices.
  • The indexes for P&S 5ft and shredded fell by $18/mt and $15/mt cfr Jakarta, respectively. Offers for US-origin P&S 5ft fell to $465/mt, while bids were at $455/mt cfr. Many traders indicated that offers fell by $30/mt but are still unviable for most mills.
  • The weekly Davis Index for #1 busheling fell by $25/mt cfr from the prior week with mills preferring domestic scrap and closely watching busheling purchase by other Asian countries.

 

Thailand

  • The weekly Davis Index for domestic HMS 1&2 (80:20) rose by THB200/mt($6.5/mt) delivered Rayong mill inclusive of taxes, amid deals at THB12,600-13,000/mt delivered mill. 
  • Mills raised bids on domestic scrap shortage. Steel mills are expected to restock scrap inventory this week and are cautiously tracking Turkish and Asian buyers’ purchase prices.
  • Deals for domestic P&S 5ft heard at THB13,300/mt on Tuesday, with mills preferring domestic scrap or imported billets amid rising scrap and iron ore prices. Container shortage and vessel delays added to the woes of steel mills, who are more interested in short transit imports. 
  • Billet deals heard at $580/mt fob India amid a rise in demand from Asian countries due to higher scrap and ore prices. ($1=THB30)

 

Malaysia 

  • The weekly indexes for HMS 1&2 (80:20) fell by $5/mt delivered western and eastern mills inclusive of taxes, respectively, mainly due to currency depreciation.
  • Malaysian steelmakers are cautious of falling global scrap prices. Trades slowed with offers for US-origin HMS 1&2 (80:20) in FEU at $405/mt unchanged from the prior week. Steel mills preferred competitively priced domestic scrap over imports. Mills have ample inventory for March and are focusing on domestic scrap for any immediate demand, said traders. ($1=MYR4)

 

India 

  • Imported ferrous scrap trading in India remained sluggish amid a wide disparity between offers and buying interest. Most buyers opted to purchase HMS from Dubai, East Africa, and Australia. 
  • Prices could recover next week amid rising demand due to bullish domestic fundamentals, claim traders.
  • The daily Davis Index for containerized shredded cfr Nhava Sheva fell by $8.75/mt. The index dropped by $28.75/mt from the prior week. The silence in Turkish markets lowered offers for the subcontinent. Most mills stayed away from negotiations as they await clarity in price direction.
  • The daily Davis Index for UAE-origin HMS 1&2 (80:20), Friday, cfr Nhava Sheva fell by $4/mt. From a week ago, the index dropped by $21/mt. 
  • The daily index for US-origin HMS 1&2 (80:20), Friday, cfr Nhava Sheva fell $5/mt. 
  • Trading for containerized P&S and #1 busheling remained halted. With a decline in shredded offers, the index for P&S and #1 busheling fell $21/mt from a week ago.
  • Rebar demand in India has been strong with the pick up in construction activities. Ingot prices ex-Mandi sustained in the latter part of the week supporting scrap prices. ($1=Rs72.47)

 

India domestic

  • In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) rose by Rs725/mt ($9.95/mt) on Thursday, but only by Rs300/mt from a week ago. Prices had come under pressure early in the week but recovered on Thursday amid tight supply. Improved demand for finished steel also gave raw material prices a lift. Steelmakers focussed on clearing inventories before the new financial year begins on April 1.
  • In Mumbai, the index for HMS 1&2 (80:20) fell by Rs1,150/mt from a week ago. Since late last week prices of finished steel were under pressure which weighed down ferrous scrap prices. A shortage of domestic material could support imports in the coming days. Most mills are likely to opt for HMS from the overseas market over other grades.

 

Pakistan  

  • Pakistani ferrous scrap importers continued to lower bids resulting in a few panic sales at low levels. Also, a downtrend in Turkish and Japanese markets have slowed trades as major mills in Pakistan decided to either postpone trades or lower bids sharply amid lacklustre steel demand. 
  • The Davis Index for containerized shredded, Friday, settled cfr Port Qasim, down by $11.25/mt from Thursday. Amid a few distressed sales in thin volumes, the index tumbled by $32.38/mt from the prior week.
  • Steel demand and ferrous scrap trades are expected to turn active next week as buyers would resume pre-Ramadan restocking. Traditionally, trading and transport activities slow down due to limited operating hours during the holy month of Ramadan, which starts from April 12.
  • The index for US-origin HMS 1&2 (80:20), Friday, dropped by $12.5/mt from the week prior. A sharp drop in fas basis offers from the US suppliers dampened sentiments further.
  • The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled cfr Port Qasim, down by $5/mt amid a sharp drop in bids. The daily Davis Indexes for P&S 5ft and #1 busheling settled at $475/mt and $490/mt cfr Port Qasim, respectively, down $7/mt. Only a few buyers were willing to negotiate for premium grades.
  • On weekly comparison, the index for domestic Bala billet rose by PKR750/mt ex-works. The Davis Index for G-60 billet was up PKR500/mt ex-works Punjab. 
  • Demand is expected to pick up gradually ahead of Ramadan before the market drops again in April. The weekly Davis Index for rebar rose by PKR500/mt ex-works Karachi, while in Punjab, the index increased by PKR250/mt.
  • Leading producers raised HRC prices by PKR3,000-3,500/mt following high imported offers.
  • As supply remains tight, the weekly index for Art Q toke scrap equivalent to a mix of HMS and P&S, Friday, settled higher by PKR2,500/mt ($15/mt) ex-yard Lahore. The weekly index for the grade settled at PKR88,250/mt ex-yards, up PKR2,000/mt. ($1=PKR157.14)

 

Bangladesh

  • Bangladeshi mills booked limited quantities of ferrous scrap to maintain their inventory levels. Most Dhaka-based mills decided to postpone their purchases and could return to the market next week. 
  • Availability of containers remained scarce and freight rates elevated, which gave domestic ferrous scrap deals a push.
  • The daily Davis Index for containerized shredded, Friday, cfr Chattogram, down by $6.25/mt. 
  • The daily index for HMS 1&2 (80:20) from Latin America cfr Chattogram fell $5/mt amid falling bids. From the prior Friday, prices dropped by $12/mt. 
  • In the medium term, sellers are bearish ahead of Ramadan in April-May. Also, finished steel prices usually decline ahead of monsoon by BDT5,000-7,000/mt as construction demand weakens. 
  • Only large-scale mills purchased containerized P&S and #1 busheling. To avoid losses, many furnaces focused only on competitively priced domestic melting and shipbreaking scrap. 
  • Amid rising supply from the shipbreaking operations, the weekly index for ship scrap equivalent to P&S and domestic HMS 1&2 (80:20) dropped by BDT1,500/mt ex-works. 
  • Domestic billet prices remained in the range of BDT55,000-55,500/mt ex-works Chattogram. Most government projects have delayed payment cycles resulting in cash flow issues for large mills. 
  • The index for large steelmakers’ rebar, Friday, dropped BDT250/mt ex-works. Large mills offered discounts of BDT500-1,000/mt to boost sales in the retail market. 
  • Supply from ship-breaking activities could increase as most yards are increasing the pace of demolition. ($1=BDT84.72)

 

Metallics

 

CIS 

  • The weekly Davis Index for CIS basic pig iron increased by $20/mt in the Black Sea basin amid active trading.
  • Pig iron demand remained strong in the US, driving global prices higher. A supplier from Russia sold 50,000mt of the material at $570/mt cfr New Orleans. The cargo is due to be shipped from the Baltic Sea in May. Last week, another Russian exporter closed a deal at $550/mt cfr.
  • New pig iron transactions were also fixed in Turkey this week. A supplier from Ukraine sold 5,000mt of the material at $565/mt cfr while another Ukrainian exporter traded similar tonnages at $573/mt cfr. Prices rose by $5-13/mt over a week.
  • The weekly Davis Index for CIS pig iron cfr Italy increased by $15/mt amid higher offers and price increases in deals at alternative outlets. However, negotiations were sporadic and did not result in transactions. CIS suppliers raised offers to $570/mt cfr, while Italian buyers were inactive.
  • A Russian pig iron exporter sold small cargoes to Western Europe, South Korea, and Saudi Arabia at $570/mt fob various ports this week. Total tonnages were around 20,000mt. 

 

US

  • The weekly Davis Index for basic pig iron (BPI) remained unchanged at New Orleans port on Friday, following three consecutive weeks of rising prices, amid a lack of transactions.
  • New offers for material this week remain at $570/mt cfr Nola, but interest was limited on Friday. Consumers have filled most of the current tonnage needs as March domestic trading concluded earlier in the week.
  • The most recent transactions comprised of a couple bookings from the CIS at $570/mt cfr Nola, which are scheduled for May shipment from the Baltic Sea. There were also two BPI cargos from South Brazil booked for high-phosphorus discounted material priced at $520/mt fob or around $560-565/mt cfr Nola. 
  • Basic pig iron consumption is projected to increase in the short term in relation to prime scrap supply tightness. Market participants noted that mills are adjusting scrap blends to cut prime scrap volume from the mix and replace with pig iron, including consumers that generally do not purchase the grade. 
  • Prime scrap may remain tight through Q3 as reinforced by blend changes observed as mills and foundries tend to make these adjustments when a trend is forecast to extend past the near-term. Moreover, pig iron is limited in supply, so prices are anticipated to continue moving upwards. 
  • The Davis Index for nodular pig iron (NPI) imports increased by $40/mt cfr Nola. Availability and offers are limited for the grade with no recent activity reported. The latest offers heard for NPI fall between $650-680/mt cfr Nola with bid level just under the range.
  • The weekly Davis Index for US hot briquetted iron (HBI) imports were flat with no new offers or bids heard for the material. The price estimate is based on current market prices for similar grades, price points sellers are willing to trade at and latest consumer interest levels.

 

India

  • The index for Sponge iron fell by Rs650/mt del Mumbai and Rs100/mt del Mandi mill from a week ago. Limited deals were reported as buyers found these prices unviable. But on Friday, the Sponge iron prices rose as international iron ore prices gained. Spot 62pc Fe Iron Ore prices rose by $6.35/mt to $171.05/mt from March 10. ($1=Rs72.81)

 

India semi-finished and finished steel

  • The daily Davis Index for billet in Mumbai decreased by Rs800/mt ($11/mt) ex-works on Friday amid a fall in imported scrap prices, while the index for rebar settled unchanged.
  • In Raipur, the daily index for billet rose by Rs200/mt ($3/mt) ex-works from the previous Friday amid a rise in raw-material prices (Sponge iron, Pig iron and silico-manganese). However, the daily index for rebar remained unchanged on moderate demand.
  • In Mandi Gobindgarh, the daily index for ingot increased by Rs200/mt ($3/mt) ex-works from the previous Friday in-line with the rise in local scrap prices.
  • In Durgapur, the bi-weekly index for billet rose by Rs300/mt ($4/mt) ex-works on Thursday compared to the prior week.
  • In Jalna, the bi-weekly index for billet settled unchanged as rebar prices remained stable ($1=Rs73.78) 

 

Shipbreaking 

  • Shipbreaking scrap prices started to inch up later in the week after declining on Monday and Tuesday. A shortage of raw material in the local yards supported sentiment.
  • The index for HMS Attachments rose by Rs550/mt($7.55/mt) ex-Alang during the week, while the index for 14Ani rose by Rs900/mt ex-Alang in the week.
  • Demand from re-rollers remained firm but they preferred to buy in a staggered manner amid fear of lockdown or new pandemic-related restrictions. 
  • The index for 2kg plates, Friday, rose by Rs700/mt ex-Alang from Monday.
  • Most mills expect markets to stay firm ahead of the Holi festival.

 

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