Ferrous Market Update 05/07/2021
- The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) increased by $8.29/mt on Friday as suppliers targeted higher prices.
- US and Baltic exporters raised offers to $500-510/mt cfr for HMS 1&2 (80:20) after a sale from Sweden was heard at $488/mt cfr for this grade. Still, bids from Turkish mills remained at around $480/mt cfr, widening the bid-offer gap significantly and resulting in no reported deals today.
- Meanwhile, new bookings for HMS 1&2 (80:20) from Romania were fixed at $457-460/mt cfr in Turkey, up by $17-20/mt from yesterday.
- Spot rebar prices in the Turkish domestic market increased by TRY50-70/mt on Friday. Bastug Metalurji raised its local rebar prices by TRY120/mt ex-works, while Icdas kept them unchanged ex-works Biga and ex-works Istanbul. All domestic prices include 18pc VAT.
- Turkish mills increased export rebar offers to $715-730/mt fob actual weight on Friday, while the most recent sale was done at around $705/mt fob to the Far East. ($1=TRY8.24)
- The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey was flat on Monday after Turkish steelmakers opted to hold their purchase prices.
- Purchase prices for shipbreaking scrap in the Izmir region surged by $28/mt on Monday after a month of stability. ($1 = TRY8.28)
- The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap increased by $19/mt in the Baltic Sea and by $13/mt in the Black Sea on Monday on improved trading prospects.
- St Petersburg exporters have lifted the price point of HMS 1&2 (80:20) sales to $445-450/mt cfr Turkey, after a Belgian supplier sold the material at an equivalent price of $448/mt cfr at the end of last week. At least three cargoes from Russia’s Baltic region were sold to Turkey at $423-426/mt cfr around 7-10 days ago, with one of them scheduled for prompt shipment.
- In Rostov-on-Don, a deal with a Turkish mill was heard at $419-420/mt cfr for A3 material last week, while the previous transaction was fixed at $407/mt cfr.
- The weekly Davis Indexes for A3 scrap remained unchanged in St Petersburg and Rostov-on-Don docks on Monday. Collection is slow amid Easter holidays in the country. ($1=RUB74.84).
- The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region increased by €8/mt ($10/mt) on Tuesday amid positive export market outlook.
- Ferrous scrap exporters from the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) raised collection prices as they plan to achieve higher prices in sales to Turkey, considering solid demand. (€1=$1.20)
- Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices climbed by £7-10/mt ($10-14/mt) to £248/mt and £245/mt, delivered dockside, respectively, on Tuesday.
- UK-based dockside buyers increased purchases by £5-10/mt, depending on grade and location, over the past week, as strong export prices encouraged most to lift rates to secure inflows.
- Some bulk suppliers are concerned that typically syndicated bookings have not eventuated this month despite stronger export prices, particularly to Turkey. Nevertheless, the few bookings that have materialized have continued to drive Turkish ferrous scrap import prices higher.
- Davis Index’s Turkish HMS 1&2 (80:20) ferrous scrap import index climbed $9/mt higher over the past week to $452/mt cfr Turkey on May 3, giving some exporters optimism.
- The weekly indices for north and south UK OA (Plate & Structural) climbed by £5/mt to £260/mt, delivered dockside, respectively, during the week.
- Davis’ weekly north and south UK 5A/5C (frag feed) ferrous scrap indices also increased by £8/mt over the past week to £158/mt, on the same basis. (£1=$1.39)
- Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices jumped by €18/mt ($22/mt) cfr, on Friday.
- A Spanish-bound cargo of HMS 1&2 (80:20) was heard to have been sold late last week at around €350 cfr northern Spain. Since then, however, offer prices have spiralled higher in response to robust pricing action on major seaborne trade routes, particularly to Turkey.
- Offers to Spain for HMS 1&2 (80:20) now stand close to €370/mt cfr northern Spain, though no deals have been concluded at these levels yet. UK-based small bulk ferrous scrap suppliers believe that the market is hot and expect Spanish mills to pay more.
- Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices increased by €13/mt to €325/mt and €335/mt fob, respectively, during the week. (€1 = $1.21)
- The US May ferrous scrap market settled in most regions on Friday with increased pricing on secondary grades amid improved demand compared to April activity.
- In Pittsburgh, prime grade #1 busheling remained flat for the most part although some sales were reported as high as $585/gt. Shredded rose by $23/gt delivered Pittsburgh consumer and P&S 5ft increased by $20/gt delivered.
- In the Ohio valley, prices moved up by $20/gt for #1 HMS, P&S 5ft and shredded scrap. Regional primes remained rangebound for #1 bundles that trended flat and #1 busheling that ticked up by $2/gt delivered.
- Houston indexes were unchanged for #1 busheling as secondary grades traded at $15-20/gt above April settled prices. The index for #1 HMS increased by $18/gt delivered, shredded rose by $19/gt delivered, and P&S 5ft was up by $20/gt delivered.
- In the Carolinas, #1 busheling remained unchanged, #1 HMS rose by $20/gt delivered, P&S 5ft climbed by $21/gt and shredded increased by $18/gt delivered.
- In the Dallas region, some garnered prices up by $20/gt against April settled prices on secondary grades, while primes were unchanged, but others are still waiting to place their volumes as a large local mill is offering sideways mill pricing on secondary grades. Some market participants also informed that they were withholding some volumes on expectations of higher price moves in June or did not place as many tons due to maintenance at their scrap yards in May.
- The present, improved momentum is anticipated to carry into next month as well as into Q3. Expectations for June began at up $10-20/gt against May settled prices.
- With Turkish import prices increasing and expectations of deals above $500/mt cfr on HMS 1&2 (80:20) and futures market estimated at $530/mt cfr on the grade, some along the coastlines are evaluating if domestic prices in those regions could increase by $40-50/gt in June.
- The expectation of higher Turkish import prices, which would support global moves, is also supported by the Turkish rebar price levels that have room to increase and give room to raw materials price increases.
- US domestic finished steel prices on HRC and rebar continue increasing without foreseeable drops soon on strong demand.
- US East Coast dock collection prices for ferrous scrap began to inch up this week while Houston docks remained unchanged. Dock prices have been rangebound with only small movements over the past month, in tandem with export activity.
- The Davis Index for US HMS 1&2 (80:20) exports to Turkey increased by $24.97/mt since last week amid rising demand on Tuesday compared to Apr 27.
- East Coast dock sales for #1 HMS are generally transacting between $340-360/gt on Tuesday with some remote deals reported as high as $370/gt also based on dock location and prior price point. Sources report prices range from flat to up $10/gt this week.
- In Boston, the weekly Davis Index for export yard #1 HMS inched up by $5/gt and rose by $7/gt for P&S 5ft delivered Boston dock. Shredder feed ticked up by $3/gt delivered Boston export yard.
- The weekly Davis Index for export yard buying prices in New York moved up for #1 HMS, P&S 5ft, and shredder feed by by $7/gt delivered, $6/gt and $2/gt delivered, respectively.
- In Philadelphia, the Davis Index for export yard collection prices of #1 HMS ticked up by $3/gt delivered while P&S 5ft and shredder increased by $4/gt delivered and $2/gt delivered, respectively.
- In Houston, the weekly Davis Index remained unchanged for #1 HMS, P&S 5ft and shredder feed delivered Houston dock. Market participants note the region is quiet, but activity and prices are projected to increase later in the week or by next week.
- San Francisco’s export yard indexes were unchanged for #1 HMS, P&S 5ft and shredder feed.
- The weekly US West Coast export yard ferrous scrap prices trended unchanged in Los Angeles and San Francisco but increased in Portland on Tuesday.
- The Turkish Davis Index for US-origin HMS 1&2 (80:20) increased by $12.48/mt last week. This week the rise doubled by $24.97/mt cfr Turkey on the latest deals. Several market participants believe that with active rebar and tight global scrap, Turkish import prices could rise by another $10-15/mt over the next few weeks.
- Higher bulk prices in Turkey have lifted offers in South Asia. Bangladeshi buyers are contemplating higher offers but are concerned about lockdowns on increased COVID-19 cases and heavy rains that may slow down construction projects.
- Domestic scrap prices are rising in India on tight supply flows, which will support higher import scrap prices. The shortage of oxygen resulting in production reductions at mills due to resource management could affect the pace of buying. Some large mills though are also receiving export orders and increasing prices on finished steel sales, which will further support raw material purchases at potentially higher prices due to the tight global supply.
- Mills in South Korea, Taiwan, and Vietnam are also facing higher domestic scrap prices. Regional mills expect higher demand from China in both semi-finished and finishes steel goods along with adequate domestic economic growth. Smaller buying countries like Malaysia and Thailand are also encountering higher domestic scrap prices on active demand. With domestic scrap prices rising, bulk buys are expected in May.
- Japanese exporters slowed offers on active holiday schedules but are expected to return with firm to higher offers. Domestic buyers are active and domestic scrap and finished steel prices are holding firm. Higher Japanese scrap offers will support increases in the US market.
- US domestic mills in the Pacific Northwest are being heard with scrap prices up $10-15/gt on secondary grades against April settled prices. Docks are being heard beginning to extend higher offers.
- The weekly Davis Index in Portland for export yard scrap rose by $8/gt for #1 HMS and P&S 5ft. Shredder feed increased by $5/gt delivered. Docks may increase prices more robustly through the week to compete with domestic mill increases.
- In Los Angeles, the indexes were rangebound with #1 HMS rising by $1/gt delivered and by $2/gt for P&S 5ft delivered. Shredder feed remained unchanged.
- US containerized ferrous scrap prices rose on both coasts with stronger gains on the East Coast as buyers were active in bulk inquiries and containers. The West Coast improved after two weeks of mostly rangebound trends.
- Some Indian buyers were active on Thursday while others reported a lag in entering the market given the US domestic trading activity. The strong export activity along with a robust domestic market indicates the low probability of softer container prices over the next few weeks.
- Indian finished steel prices have risen in some regions in tandem with domestic scrap prices. Some regions encountered softer domestic scrap prices, but this trend may not last due to positive market sentiment despite the active COVID-19 related lockdowns. Mill producers are focusing on export markets amid slower domestic activity with large mills announcing price hikes on finished goods.
- Bangladesh and Pakistan are also facing regulations on lockdowns and oxygen resources. Pakistan’s steel production remains unchanged. Bangladesh’s buys have slowed on an upcoming holiday but are expected to return with interest for raw materials and participate in active Japanese tenders.
- Domestic scrap prices in South Korea, Japan, Taiwan, and Vietnam are expected to rise on global cues and continued strong steel-making activity. Japanese exporters have increased scrap export offers this week. The Asian region’s positive sentiment is supported by Chinese import activity of semi-finished and finished steel goods.
- In New York, the weekly Davis Indexes rose by $8-17/mt, against last week’s gains of $5-10/mt, supported by Turkish imports and active demand. The shredded index rose by $17/mt to followed by #1 busheling, which climbed by $14/mt fas. HMS 1&2 (80:20) increased by $12/mt while P&S 5ft climbed by $13/mt. Machine turnings increased by $5/mt fas.
- The weekly Los Angeles containerized scrap indexes grew by $6-11/mt after a mild increase of $2-3/mt in the prior week. The index for #1 busheling rose by $6/mt to, shredded climbed by $11/mt, and HMS 1&2 (80:20) and P&S 5ft both rose by $9/mt.
- Some market participants reported a higher number of inquiries for shredded that increased their own spread against P&S 5ft, which usually trends parallel to the grade. While container availability remains tight, some reported relief in the past two days and, therefore, increased bookings on pent-up interest.
- In San Francisco, the weekly indexes increased by $9-10/mt after remaining unchanged in the prior week. The index for #1 busheling and shredded both increased by $10/t to as HMS 1&2 (80:20) and P&S 5ft both rose by $9/mt.
- Seattle’s Davis Indexes climbed by $3-6/mt with #1 busheling rising by $6/mt and P&S 5ft climbing by $3/mt. The HMS 1&2 (80:20) and shredded indexes both climbed by $5/mt.
- Mexico’s domestic ferrous scrap prices increased on Friday amid strong demand following China’s decision to eliminate the country’s import tax on billet.
- Moreover, prices are expected to continue rising next week, after Deacero, Mexico’s largest steelmaker, continued raising its purchase prices for scrap. Mills are bidding aggressively for scrap amid limited material availability due to increased exports this month.
- In North Mexico, the weekly Davis Index for #1 HMS climbed by MXN133/mt delivered Mexico consumer, P&S 5ft moved up by MXN217/mt delivered, shredded increased by MXN267/mt delivered, machine shop turnings rose by MXN142/mt and #1 busheling climbed by MXN661/mt delivered.
- The weekly Davis Indexes in Bajío for #1 HMS, shredded, and machine shop turnings climbed by MXN67/mt delivered, respectively and #1busheling rose by MXN33/mt delivered. P&S 5ft increased by MXN133/mt delivered.
- In Central Mexico, the weekly Davis Indexes for #1 HMS, P&S 5ft, shredded, machine shop turnings, and #1 busheling climbed by MXN200/mt delivered. ($1=MXN19.92)
- Japanese trade activities were closed for Golden Week Holidays from Apr 29 till May 5. The market resumed on May 6, while Japanese scrap exporters await Kanto Tetsugen tender result to gain clarity on the price direction.
- Tokyo steel has held ferrous scrap purchase prices unchanged at all five works since Apr 21.
- The weekly index for #2 HMS, Wednesday, rose JPY250/mt fob Japan. On a fas basis, the index for the grade rose JPY500/mt ($4.6/mt). Major South Korean mills stayed away from Japanese scrap this week.
- Firm HRC and billet prices lifted the profit margins of Japanese EAF steelmakers. But amid a shortage of scrap and the resulting rise in prices, margins could narrow.
- The weekly index for the grade rose JPY500/mt fob Japan. On a fas basis, the index rose JPY750/mt.
- Offers for Japanese HMS 1&2 (50:50) were at $480/mt cfr Vietnam from the prior week with the index for the grade up $3/mt cfr Haiphong on limited availability and higher small bulk freights.
- The index for Japanese HMS 1&2 (50:50) rose $2/mt cfr Taiwan. The disparity between bids and offers weighed on trades. ($1=JPY108.2)
- Domestic ferrous scrap prices in South Korea rebound this week on higher imported scrap offers. Most mills opted for domestic scrap purchases over imported on logistic challenges.
- The weekly Davis Indexes for domestic Heavy A, Tuesday, rose KRW5,000/mt to delivered Incheon and Pohang. The weekly Davis Index for domestic Light A del Pohang, up KRW7,500/mt. Bullish steel prices in China after the Labour day holiday could promote Korean mills to ramp production for exports.
- The Davis Index for containerized HMS 1&2 (80:20) cfr South Korea, Wednesday, fell $2/mt from the prior week. Mills refused to accept high offers for containerized HMS 1&2 (80:20) amid ample supply of domestic scrap.
- Trades for medium and low-grade scrap in containers remained paused as most buyers bought only premium grades from the overseas markets. South Korean mills resisted bulk purchases from Russia, Japan, and the US west coast this week. ($1=KRW1,111)
- Leading Taiwanese steelmakers Feng Hsin raised ferrous scrap bids by TWD200/mt on Monday. The steelmaker hiked its rebar prices by TWD400/mt. Domestic mills are preferring local scrap amid a jump in imported prices.
- The weekly Davis indexes for domestic HMS 1&2 (80:20) rebound by TWD200 and TWD300/mt on Tuesday delivered southern and northern mill, respectively.
- Imported ferrous scrap offers jumped in Taiwan following the recovery in Turkish bulk prices. High freight rates and increased steel demand also lifted prices. The Davis Index for containerized US-origin HMS 1&2 (80:20), Friday, settled cfr Taiwan, up by $3/mt from a day prior.
- In the coming days, appetite for ferrous scrap imports is expected to rise with a sharp rise in iron ore, HRC, rebar, and billet prices in almost all Asian countries, led by Chinese demand.
- There was a gap of over $20-25/mt between HMS imported from Japan and the US, this would push the US offers further, believe traders.
- The indexes for P&S 5ft and #1 busheling rose $3/mt and $1/mt cfr Taiwan amid increasing demand for higher grade scrap this week. ($1=TWD27.87)
- In China, Shagang steel raised its finished steel prices by CNY300-450/mt ($46-78/mt) for early May deliveries amid strong demand.
- Mills are expected to increase domestic procurements amid a jump in Japanese scrap export. Chinese buyers could pressure Japanese scrap offers to bring it in parity to domestic prices. The cancellations of import duties on scrap could also lower offers in the coming days. The weekly Davis Index for the HMS 1&2 (80:20) settled at CNY3,525/mt ($542/mt) delivered mill, up CNY15/mt including 13pc VAT.
- The index for Japanese P&S 5ft (small bulk) cfr China port settled up by $4/mt from the prior week as offers rose. Negotiations for small bulk cargoes of P&S heard at $515-520/mt cfr China on Wednesday.
- In the domestic market, higher demand for billet could support ferrous scrap prices. Offers for billet imports in China rose above $680-685/mt cfr China up $10/mt from the prior week. As China waived off import duty on steel products from non-ASEAN nations, ASEAN billet makers have lost their advantage over steel exporters from India, Russia and Japan.
- Prices for Q235 150mm square billets in Tangshan rose over CNY220/mt in just two days after the resumption of trade on May 6 post-Labour day holiday. ($1=CNY6.48)
- The weekly Davis Index for HMS 1&2 (80:20) in Vietnam, Tuesday, rose by VND800,000/mt ($34/mt) delivered South Vietnam inclusive of taxes. Domestic steel demand is gradually recovering in Vietnam as construction activities pick pace.
- HRC offers to Vietnam rose to above $1,000/mt cfr Vietnam on Friday driven by bullish offers from Indian and South Korean suppliers. Holidays in China and Japan have impacted steel trades and ferrous scrap supply to Vietnam, but many mills also stalled production this week.
- The weekly index for containerised US-origin HMS 1&2 (80:20), Thursday, rose cfr Vietnam by $4/mt from the prior week. Vietnamese importers were comparatively slow in trades after strong restocking ahead of the Labour day holiday.
- An uptick in freight charges limited trades from USWC as mills opted for domestic scrap. Importers were negotiating for US-origin bulk. Offers for shredded were above $480-485/mt cfr Vietnam. Amid tight supply, a mill is heard to have bought Japanese busheling at $535/mt cfr Vietnam.
- On a weekly basis, the Davis indexes for containerized #1 HMS, Thursday, rose by $5/mt cfr Vietnam. Shredded, P&S 5ft and #1 busheling rose $3/mt, $7/mt and $7/mt respectively. ($1=VND23,010)
- The Davis Index for HMS 1&2 (80:20) in containers rose $14/mt from the prior Thursday cfr Jakarta. Mills showed limited buying interest due to the Ramadan lull and preferred short transit origins.
- Ferrous scrap demand and prices in Indonesia rose buoyed by an increase in import enquiries from China. Most mills are expected to resume ferrous scrap restocking.
- The weekly indexes for P&S 5ft and shredded Thursday rose $19/mt cfr Jakarta from the prior week amid tight supply. Bids lagged by $10-15/mt from offers. Buyers are expected to be in the market for post-Eid demand. ($1=IDR14,450)
- Increased billet trades in Asia and higher freight charges raised imported scrap offers to Thailand. The domestic supply of ferrous scrap remains tight, yet many steel mills avoided imported scrap bookings due to Ramadan holidays and preferred domestic material for immediate melt requirements.
- The weekly Davis Index for domestic HMS 1&2 (80:20) rose by THB475/mt delivered Rayong mill inclusive of taxes. Deals for domestic P&S 5ft heard above THB15,000-15,500/mt on Tuesday. With the cancellation of import duties on steel exports from non-ASEAN countries, effective May 1, Thai mills have lost their advantage over suppliers from India, Japan and Russia. ($1=THB31.37)
- The weekly index for HMS 1&2 (80:20) rose by MYR175/mt from the prior Tuesday delivered eastern and western region inclusive of taxes. Amid a shortage of domestic scrap, some mills raised bids for imported scrap to replenish falling inventories.
- Other ASEAN mills booked Central American containerized HMS 1&2 (80:20) at $425-430/mt cfr Thailand and Malaysia, up $10/mt from the prior week. ($1=MYR4.09)
- Demand for imported ferrous in India continued to improve on tight domestic supply and low inventories at mills. Deals, however, were mostly for immediate melt requirements amid cautious buying.
- The Davis Index for containerized shredded, Friday, cfr Nhava Sheva rose by $2.5/mt. From prior Thursday, the index rose by $21.25/mt. Mills, however, resisted shredded scrap bookings as prices have reached a four-month high.
- The index for US-origin HMS 1&2 (80:20), Friday, rose $2.5/mt cfr Nhava Sheva from a day ago and up $13.5/mt from the prior week amid thin bookings. Indian mills opted for short transit container bookings.
- The daily Davis Index for UAE-origin HMS 1&2 (80:20) rose $5/mt cfr Nhava Sheva. On a weekly basis, the index rose $23/mt. Deals for Dubai-origin HMS #1 were active for cfr Nhava Sheva and cfr Chennai. Meanwhile, the UAE government has extended its ban on ferrous scrap exports by three months, but market participants believe it is unlikely to affect the Indian markets.
- Mills stayed away from booking containerized P&S and #1 busheling. The indexes for P&S and #1 busheling rose cfr Nhava Sheva, respectively, up by $21/mt and $19/mt from the last week.
- Offers for Turning scrap from Latin America to Chennai mills jumped up by $15-20/mt cfr Chennai from a week ago amid thin trades.
- On Friday, melting scrap offers in Alang remained unchanged ex-yards. Activities at most yards remain suspended. Tight domestic scrap supply and rising rebar and ingot prices boosted imported scrap sentiment as mills raised inquiries for UAE, Africa and Latin American-origin materials.
- Indian mills kept billet export offers above $690-700/mt cfr China, up $20-25/mt from the prior week. Strong demand for semis in the export market is likely to boost ferrous scrap demand in India. Offers for Chinese HRC rose by $20/mt to $975-980/mt fob China and prices for Indian HRC have hit $1,000/mt cfr Vietnam. ($1=Rs73.52)
- Domestic ferrous scrap prices in Mumbai and Mandi Gobindgarh rose by Rs1,000-2,500/mt ($13.6/mt -$34/mt) amid tight supply and firm demand from local mills. The daily Davis Index for HMS 1&2 (80:20), Friday, rose Rs2,475/mt del Mumbai mills and increased by Rs925/mt del Mandi Gobindgarh mills from the prior Thursday.
- Mills opted for local scrap over imported to reduce transit time and avoid higher imported offers.
- Amid subdued steel demand in the domestic market due to strict lockdown steelmakers and focused on export markets.
- Imported ferrous scrap prices in Pakistan scaled four months’ high in recent trades. The government has announced national holidays from May 10-15 while market participants expect trading to remain suspended from Sunday, May 9 to Monday, May 17.
- The country is also observing stringent restrictions on the movement of people and goods amid a resurgence of COVID-19, but steel production is unimpacted.
- Traders are optimistic of bookings next week as depleting inventories could force buyers to secure scrap despite the Eid holidays.
- The daily Davis Index for containerized shredded, Friday, cfr Port Qasim, up by $2.5/mt from Thursday. Trades for over 10,000mt of shredded in containers heard in the range of $480-490/mt cfr Qasim this week. From last Thursday, the index rose by $22.05/mt.
- The daily index for US-origin HMS 1&2 (80:20), Friday, gained $2.5/mt cfr Port Qasim. Offers jumped by $20-25/mt in a week scaling four months’ high. Most US suppliers are focusing on domestic demand amid steady monthly settlement prices in May and persisting logistics challenges in seaborne trade.
- The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled cfr Port Qasim, up by $3/mt. From last Friday, the index increased by $17/mt. UAE-based traders are hopeful of more deals in the coming days supported by a pick-up in steel demand post-Eid.
- The Davis Index for P&S 5ft rose $22/mt cfr Port Qasim; while that for busheling rose $19/mt from prior Thursday. Supply for prime grades remained tight resulting in few trades.
- In the domestic market, on a weekly basis, the index for domestic Bala billet rose PKR1,000/mt ex-works. Offers for G-60 billet were at PKR116,000-117,000/mt ex-works Punjab on Friday.
- The weekly Davis Indexes for rebar ex-works Karachi and Punjab inched up by PKR500/mt and PKR250/mt, respectively. Amid rising raw materials prices and high input costs, most large steelmakers decided to lift their asking prices for rebar.
- Pakistani flat steel producers hiked prices in sync with the rise in international HRC offers. CRC offers rose to an all-time high of above PKR200,000/mt ex-works.
- Driven by high imported scrap offers, the weekly index for Art Q toke scrap equivalent to a mix of HMS and P&S, Friday, rose PKR500/mt ex-yard Lahore. For Pure Q toke scrap (equivalent to shredded) weekly index ex-yards rose PKR200/mt. ($1=PKR152.08)
- Imported ferrous scrap prices in Bangladesh moved towards the record-high levels seen in January this year, amid strong global cues. However, buying activity in the market was limited to a few large-scale steel producers and is expected to remain slow next week on account of Eid.
- Bangladeshi mills have diverted their oxygen supply for medical use. The government-imposed lockdown restrictions will continue till May 16, keeping logistics slower than usual.
- The daily Davis Index for containerized shredded, Friday, cfr Chattogram, up by $1.25/mt. The index rose by $15/mt from prior Thursday.
- Demand for high-grade scrap was highest in Bangladesh among other subcontinent markets. The Davis indexes for P&S and #1 Busheling, Friday, rose by $20/mt and $15/mt, respectively, from the prior Thursday.
- Trades for Singaporean P&S were at $510/mt cfr Chattogram while UK-origin offers surged to $515-520/mt cfr Chattogram in containers.
- Most Latin American yards raised offers for HMS 1&2 (80:20) cfr Chattogram on higher freight charges and active domestic demand, pushing the index up by $16/mt from prior Thursday. Demand for HMS strengthened in India boosting sellers’ sentiments.
- Bangladeshi mills, despite Eid holidays, may participate in the Kanto tender scheduled next week.
- The weekly index for ship scrap equivalent to P&S was flat ex-yards on Friday. The weekly index for billet ex-works rose BDT750/mt from the prior Thursday.
- Large steelmakers kept offers above BDT70,000-71,000/mt ex-works, keeping the weekly index unchanged on Friday. Large mills continue to operate at high utilization levels driving scrap demand in Bangladesh. ($1=BDT84.74)
- The weekly Davis Index for basic pig iron (BPI) rose by $12/mt in the New Orleans port on Friday on bullish supplier sentiment and increased for CIS BPI by $20/mt in the Black Sea on higher priced sales to Turkey and Italy.
- CIS pig iron exporters raised offers following a firm uptrend in the global ferrous scrap and steel product markets and limited availability of pig iron. Turkish demand for the material was strong this week and a cargo of Ukrainian material was purchased at around $630/mt cfr.
- Producers in Southern Brazil raised offers this week to $600/mt fob which translates to about $620/mt cfr Nola, however sales have not been confirmed at this level yet.
- For CIS pig iron in Italy, the weekly Davis Index jumped by $27/mt on Friday on a new transaction in which, a Ukrainian exporter sold the material at around $620/mt cfr for distribution.
- The Davis Index for nodular pig iron (NPI) imports increased by $6/mt. The material is in tight supply and current offers entail shipment by July or later. Offers heard for NPI this week start at $680/mt cfr Nola with bids just below that level.
- US hot briquetted iron (HBI) imports increased by $4/mt. New offers or bids have not been heard lately but the grade’s price is valued on most recent offer levels and price movements for comparable material.
- A tight supply of domestic scrap is driving the price of sponge iron in India. The non-availability of industrial oxygen has severely hampered cutting operations at yards due to which there is a shortage of scrap that fits small furnace specifications forcing mills to opt for sponge iron.
- The index for sponge iron rose by Rs400/mt del Mumbai mills, while the index in Mandi Gobindgarh rose by Rs300/mt del mills. ($1=73.49)
India semi-finished and finished steel
- The daily Davis Index for billet in Mumbai rose by Rs1,000/mt ($14/mt) ex-works compared to the previous Thursday pushed higher by local scrap prices coupled with a hike in rebar prices. The price increase is also attributed to the limited availability of raw material and industrial oxygen. The index for rebar surge by Rs1,500/mt ($20/mt) ex-works on tight supply.
- In Raipur, the daily index for billet dropped by Rs300/mt ($4/mt) ex-works from the previous Thursday with limited trading. Billet prices slipped mid-week but picked up on Friday. Meanwhile, rebar demand remained subdued through the week due to the extension of lockdown till May 15. The index for rebar fell Rs1,000/mt ex-works.
- In Mandi Gobindgarh, the daily index rose Rs300/mt ex-works from the previous Thursday.
- State-owned steelmaker RINL has hiked prices of billet, rebar and rounds by Rs1,000/mt ($14/mt), while prices of wire rod and structural products rose by Rs1,200/mt ($16/mt) for May deliveries. ($1=Rs73.37)
- Shipbreaking scrap prices rose by Rs500-1,000/mt ($6.8/mt-$13.6/mt) this week amid a slowdown in dismantling operations and shortage of oxygen cylinders. The daily Davis Index for HMS attachments and Melting rose by Rs1,000/mt ex-Alang on Friday from the prior Thursday.
- Mills were seen buying scrap on a need basis as demand from the end-users slowed due to stringent lockdown measures.
- The index for 4Ani increased Rs600/mt ex-Alang and the index for 14Ani rose by Rs500/mt ex-Alang in the same period.
- Ship plates prices also saw a similar trend, the index for 1kg plates rose by Rs1,000/mt ex-Alang due to tight supply.
- Availability of tonnages was low in Alang as Pakistan and Bangladesh bid higher for scrapped vessels. ($1=73.49)