Ferrous Market Update 11/27/2020
- The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) increased by $2.71/mt on Friday amid fresh bookings from the Baltic region, Europe, and the UK.
- Ferrous scrap purchases have shot up in Turkey amid full order books for steel products. Some mills have already started bookings for February shipment. Thus, a supplier from Latvia sold HMS 1&2 (80:20) at $350.50/mt cfr and bonus material at $360.50/mt cfr to an Izmir-based mill. The cargo will amount to 25,000mt and is due to be shipped before February 10, 2021.
- An Iskenderun-based integrated steel mill closed a deal with a European recycler at $346/mt cfr for 8,000mt of HMS 1&2 (80:20), $360/mt cfr for 15,000mt of shredded scrap, and $356/mt cfr for 4,000mt of bonus material for January shipment.
- The price for shredded scrap was higher than that for bonus material due to a shortage in the former for Turkish mills who are trying to increase production to full capacities amid buoyant steel product sales.
- An Izmir-based mill purchased HMS 1&2 (80:20) at $350/mt cfr from the UK.
- US ferrous scrap suppliers resumed negotiations and some deals are expected soon. Offers were heard at around $360/mt cfr for HMS 1&2 (80:20), while bids were at around $350/mt cfr.
- The daily domestic spot rebar prices in Turkey increased by TRY10-30/mt ($1-4/mt) on Friday, but the daily exported rebar prices rose by $10/mt. ($1 = TRY7.81)
- The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey rose by TRY102/mt ($13/mt) to TRY2,467/mt ($313/mt) delivered on Monday, following the uptrend in the imported ferrous scrap market.
- Colakoglu Metalurji lifted its purchase price for DKP grade by TRY90/mt delivered on Nov 23, while Diler Demir Celik and Kroman raised it by TRY140/mt and by TRY150/mt delivered, respectively.
- Mescier and Erdemir also announced a TRY90/mt price rise for the same grade, starting Nov 24.
- Isdemir and Kardemir kept their purchase prices for DKP grade unchanged. Both the mills have held their pricing at these levels since the second week of November.
- Purchase prices for shipbreaking scrap in Izmir jumped by $20/mt delivered over the week amid strong demand for it. ($1 = TRY7.88)
- The weekly Davis Index for HMS 1&2 (80:20) surged by $21/mt fob Baltic Sea basin and by $22/mt fob Black Sea basin on Monday amid a robust export market.
- Russian ferrous scrap exporters targeted higher prices, anticipating further purchases in Turkey after mills at this destination sold significant tonnages of rebar for January and February.
- Collection prices increased significantly in Russia amid the bullish export market. The weekly Davis Index for HMS 1&2 (80:20) jumped by RUB1,500/mt ($20/mt) delivered St Petersburg dock and rose by RUB350/mt ($5/mt) delivered Rostov-on-Don dock. ($1 = RUB76.35)
- The weekly Davis Index for HMS 1&2 (75:25) delivered ARAG region increased by €6/mt ($7/mt) on Tuesday after the most recent sales to Turkey.
- Collection prices for ferrous scrap rose in the Netherlands and Belgium as suppliers achieved higher prices in sales to Turkey due to solid demand. (€1 = $1.19)
- Davis Index’s weekly north and south dockside UK HMS 1&2 (80:20) ferrous scrap indices were unchanged on Tuesday.
- UK dockside purchase prices remained surprisingly flat over the past week, despite a surge in benchmarks on major seaborne trade routes, particularly to Turkey.
- Turkish HMS 1&2 (80:20) ferrous scrap import prices have jumped by $20/mt over the past weeks to $337.68/mt on Nov 23.
- Some local merchant suppliers expressed their consternation that bulk UK scrap processors had been able to suppress dockside purchase prices given the strength in export tags.
- One UK-based trader hypothesized that some merchants were liquidating stocks ahead of Christmas to improve cashflow and material was flowing in faster than could be sold.
- British ferrous scrap traders noted that benchmarks had remained unchanged this week, though most fully expect a large price hike in the next few working days.
- The weekly indexes for north and south UK OA (Plate & Structural) were unchanged over the same period, respectively, delivered dockside on Nov 24.
- Davis’ north and south UK 5A/5C (frag feed) ferrous scrap indexes were flat, respectively, delivered dockside over the past week. (£1 = $1.33)
- Davis Index’s weekly northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices jumped by €13/mt ($16/mt) cfr on Friday.
- Bids and offers for short sea bulk ferrous scrap cargoes to Spain played catch up over the past week to recent price developments in major seaborne trade routes.
- In fact, Turkish HMS 1&2 (80:20) ferrous scrap import prices have surged by $41.81/mt over the past two weeks to $349.95/mt on Nov 26.
- While Spanish buyers lifted their bids by €10/mt over the past week, they remain €10/mt below the offers of UK and European suppliers.
- As a result, UK suppliers have continued to offer more cargoes to northern European destinations as well as for transshipment on to Turkey, given a more profitable arbitrage along these routes.
- Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded also jumped by €13/mt fob on Nov 27. (€1 = $1.19)
- US East Coast and Houston dock collection prices for ferrous scrap sustained their rising momentum on continued export activity and a strengthening domestic market.
- Since late October, when exports between Turkey and the US traded at around $292-294/mt cfr for #1 HMS, prices have risen by about $50/mt cfr to $340-345/mt cfr for the material.
- Export yard buying prices for #1 HMS on the East Coast ranged between $255-260/gt on Tuesday, rising by $10/gt since last week and by $30/gt since Oct 27.
- Some sellers are holding material and refraining from transacting at that level as they deem prices at $275-280/gt would be more parallel to current export price levels. However, dockside prices may not reach that point until December.
- In Boston, the weekly Davis Index for export yard #1 HMS climbed $10/gt delivered, P&S 5ft moved up by $9/gt delivered and shredder feed ticked down by $2/gt delivered.
- The weekly Davis Index for export yard buying prices in New York rose by $11/gt delivered for #1 HMS, by $10/gt delivered for P&S 5ft, and by $3/gt delivered for shredder feed.
- In Philadelphia, the index for #1 HMS increased by $12/gt, P&S 5ft went up by $11/gt delivered, and shredder feed climbed by $2/gt delivered.
- The Houston indexes climbed by $10/gt delivered for both #1 HMS and P&S 5ft and by $8/gt delivered for shredder feed.
- The US West Coast dock prices for ferrous scrap resumed their climb after remaining rangebound last week, due to tight scrap flows and continued export demand.
- Docks began rolling out price increases of $10/gt to vendors in Los Angeles on Tuesday, while San Francisco docks increased their prices by $20/gt. However, few market participants reported taking inventories to docks in Los Angeles, preferring instead, for effective price increases to come into play.
- The offers for US-origin #1 HMS to Turkey are rising as Turkish mills face the prospect of higher-priced scrap deals owing to strong local and international rebar sales along with a tight global scrap supply and high demand from Asian buyers.
- The sentiment for scrap and steel demand remains optimistic for Q1 2021, despite diverging opinions on the impact of potential COVID-19 related lockdowns on supply chains.
- Local scrap prices in Thailand increased but dropped in Malaysia. Indian buyers remained active in the import market this week, but domestic scrap and ingot prices softened over the past week.
- Much is dependent on the influence of China. An increase in billet buys from Chinese consumers will also raise production schedules in December and January in South Korea and other Asian countries.
- Some participants are wary of China’s ability to continue supporting iron ore, semi-finished steel, and ferrous scrap prices. A dramatic slide is not expected, but a pause through December could be possible.
- The US domestic scrap market is looking more dynamic this week with several dealers forecasting starting points of up $50/gt against November settled prices, which could increase further during negotiations. A large increase in US domestic mill prices could make scrap prices more expensive for the export market.
- The weekly Davis Indexes in Portland were flat for the second straight week for #1 HMS and P&S 5ft, while shredder feed increased by $2/gt delivered.
- In San Francisco, the Davis Indexes for #1 HMS increased by $21/gt delivered, P&S 5ft rose by $22/gt delivered docks, and shredder feed climbed by $5/gt delivered.
- The dockside indexes in Los Angeles increased nominally as new pricing was announced at the end of the day. #1 HMS rose by $3/gt delivered, P&S 5ft climbed by $2/gt delivered, and shredder feed went up by $4/gt delivered
- US containerized scrap prices continue to trend up as November ends. Tight scrap inventories are pushing Turkey’s import scrap prices higher. The Turkish Davis Index of HMS 1&2 (80:20) at $346.30/mt cfr on Wednesday was $52.30 higher compared to Nov 2.
- Japanese export scrap offers continue climbing on global cues and firmer domestic scrap prices. Thus, higher export offers from Japan to Asian buyers will continue supporting US export prices.
- The elevated import prices have made buyers hesitate before striking deals. In Pakistan, despite weak finished steel demand, the lack of scrap may force importers to return to seek import volumes.
- In Bangladesh, buyers continue importing scrap due to scarce domestic scrap resources and higher domestic billet prices, though consumer demand remains weak. India is encountering higher domestic scrap and sponge iron prices, making buyers from that destination turn to imports.
- South Korean mills are reporting adequate scrap inventories and prefer domestic material given the higher import prices.
- Taiwanese buyers have also limited import scrap buys due to higher freight prices and limited container availability, opting instead for domestic scrap. One buyer noted that some mills have put a hold on export transactions due to uncertainty in freights that could be wide at $200-1,000/container from the US West Coast in December.
- In the US, the start of the holiday season, lower winter scrap feedstock supplies, continued scrap demand, and higher prices, which some say resemble 2007, will support scrap prices into Q1 2021.
- The weekly Davis Indexes in New York rose across most grades for the sixth consecutive week. The #1 busheling index increased by $3/mt fas, P&S 5ft climbed by $8/mt fas, and shredded rose by $5/mt fas. The HMS 1&2 (80:20) index increased by $1/mt fas, while machine turnings remained unchanged.
- The Davis Indexes in Los Angeles increased for the seventh consecutive week with #1 busheling inching up by $1/mt fas, HMS 1&2 (80:20) rising by $4/mt fas, and both P&S 5ft and shredded climbing by $3/mt fas.
- In San Francisco, the index was unchanged for #1busheling while HMS 1&2 (80:20) rose by $2/mt fas. P&S 5ft and shredded climbed by $1/mt fas.
- The indexes in Seattle for #1 busheling and P&S 5ft were flat, while HMS 1&2 (80:20) and shredded increased by $2/mt fas.
- Domestic ferrous scrap prices in Mexico increased in the North, Central, and Bajío regions amid continued demand for the material.
- Scrap prices in Bajío rose between $15-20/mt and were up in Central and North Mexico by $20/mt, and $5/mt, respectively, as demand outpaced supply in the region.
- Mexican mills are struggling to collect scrap in the Central and Bajío regions, causing a surge in scrap prices, with market participants projecting tight supply over the next few weeks at least.
- In North Mexico, the weekly Davis Indexes across all grades increased by MXN100/mt delivered Mexico consumer.
- The weekly Davis Indexes in Bajío for HMS 1&2 (80:20) rose by MXN400/mt delivered Mexico consumer, P&S 5ft increased by MXN297/mt delivered, shredded climbed by MXN450/mt delivered, #1 busheling moved up by MXN500/mt delivered, and machine shop turnings increased by MXN250/mt delivered.
- In Central Mexico, the weekly indexes increased by MXN400/mt delivered Mexico consumer for P&S 5ft, machine shop turnings, #1busheling, and HMS 1&2 (80:20). The index for shredded increased by MXN350/mt delivered. ($1=MXN19.98)
- Tokyo Steel raised its domestic scrap purchase prices five times in two weeks, with the latest revision effective Nov 28. The steelmaker lifted its bids by JPY1,000/mt ($9/mt) only for deliveries to the Utsunomiya plant. Prices were kept unchanged at the other four works. After the latest revision, the H2 price was at JPY28,500/mt ($274) delivered plant.
- The mill also raised finished steel prices for December deliveries by JPY2,000/mt ($19/mt) following bullish global cues and an increase in ferrous scrap purchase prices, with the possibility of a further hike amid increased input costs. Another steelmaker, Osaka Steel raised steel section prices by JPY3,000/mt for December.
- With suppliers in the US staying away from markets for the Thanksgiving holidays, Asian buyers could focus on Japanese bulk among other origins.
- The weekly Davis Index for #2 HMS rose by JPY1,458/mt fas. In the export market, the weekly index for the grade increased by JPY1,510/mt fob Japan.
- In the Kanto region, the Davis Index for #1 HMS increased by JPY1,500/mt fas, while in the export market it increased by JPY1,500/mt fob Japan, with no deals heard.
- The weekly Davis Index for HS and shredded rose by JPY1,083/mt and JPY750/mt fas, respectively.
- The index for Japanese HMS 1&2 (50:50) increased by $11/mt cfr Taiwan and by $10/mt cfr Vietnam on Wednesday.
- Traders are optimistic of a recovery in demand as steelmakers may ramp-up production in most Asian countries. ($1=JPY104)
- South Korean domestic ferrous scrap prices trended flat this week. Next week, however, mills could decrease domestic scrap prices by KRW10,000/mt ($9/mt) delivered Pohang.
- Suppliers stayed away from offering material, anticipating a price rise in the coming days.
- Containerized imported ferrous scrap prices in South Korea rose on increased offer prices. Demand, however, is still under pressure with mills holding good levels of scrap inventories.
- The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, rose by $4/mt cfr South Korea.
- After high Kanto and Kansai bids this month, mills limited Japanese scrap purchases. Dongkuk Steel bought 10,000mt Russian A3 at $329/mt cfr, avoiding deep-sea or Japanese scrap this week.
- Offers for billet exports remained unchanged from the prior week cfr Southeast Asia and China.
- Southeast Asian billet export offers were up by $15/mt cfr. Indian exporters were away from the market since they are focusing on the domestic market.
- The weekly Davis Indexes for P&S 5ft, #1 HMS, and shredded rose by $4/mt, $2/mt, and $3/mt cfr South Korea, respectively.
- Market participants indicated that a shortage of containers and supply crunch of ferrous scrap from other origins lifted offers. ($1=KRW1,103)
- The Davis Index for containerized US-origin HMS 1&2 (80:20) increased by $6/mt cfr Taiwan from Wednesday, and by $11/mt from Nov 19. Many small mills kept their bids low or opted for domestic scrap.
- Feng Hsin raised finished steel prices by TWD300/mt ($10.5/mt) this week to offset increased input costs. Domestic ferrous scrap prices also rose by TWD300/mt and could move up amid higher imported offers.
- Prices are also expected to rise due to increased buying by Turkish importers. Though demand is limited, rising offers are pushing ferrous scrap prices higher. Traders indicated importers are preferring scrap from other places due to container shortage and delay in shipments.
- The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded, and #1 busheling rose by $11/mt, $13/mt, $13/mt, and $11/mt cfr, respectively. No deals were heard for the above grades as mills were wary of rising offers.
- In the bulk market, offers for Japanese HMS 1&2 (50:50) were up by $10/mt cfr from the week prior. Offers rose amid limited buying. ($1=TWD28.5)
- In China, Shagang Steel kept finished steel prices flat this week, causing ferrous scrap prices to fall on Tuesday. Scrap prices may fall further, driven by a decline in iron ore prices and the cold weather.
- The weekly Davis Index for the HMS 1&2 (80:20) declined by CNY20/mt($3/mt) on Tuesday.
- Prices for Q235 150mm square billets in Tangshan dropped by CNY10/mt with mixed indications for December demand. SE Asian billet export offers were up by $10/mt from the prior week.
- New ferrous scrap import regulations, earlier expected on Jan 1, 2021, have hit a roadblock with the latest ban on solid waste in China. It is still unclear if certain standards or grades will be allowed or not. Traders are awaiting clarity.
- China will remove its prohibition on 136 steel products from December 1 as per the Ministry of Commerce (MOC). Subsequently, steel mills will not have to pay import duties on imported steel, which will be reprocessed for exports. ($1=CNY6.58)
- The weekly Davis Index for domestic HMS 1&2 (80:20) this week rose by VND40,500/mt ($1.7/mt) delivered South Vietnam inclusive of taxes, with limited deals heard at the index price.
- The domestic steel market is gradually recovering driving mills to purchase both, imported and domestic scrap. A rise in HRC and rebar sales pushed steel mills to restock ferrous scrap aggressively.
- A few mills were in the bulk market with a couple of deals heard on Friday from the US west coast supplier yards and Australia. Bids remained unchanged from last Tuesday.
- In the containers market, the weekly index for US-origin HMS 1&2 (80:20) increased by $8/mt cfr on Thursday.
- During the Thanksgiving holiday break, Vietnamese importers stayed away from any deep-sea booking. Mills are also negotiating for Japanese scrap.
- The weekly index for P&S 5ft and shredded rose by $9/mt and $12/mt cfr, respectively, on Thursday. Vietnamese mills raised inquiries for Australian-origin scrap. Offers for P&S 5ft in TEUs were up by $10/mt from the week prior with no buying at these levels.
- In the containers market, prices for #1 busheling rose by $12/mt cfr from a week ago. ($1=VND23177)
- Indonesian mills booked cautiously amid high US-origin offers and delays in shipments due to container shortage and limited availability of vessels. Market participants expect scrap prices to rise next week fueled by increased offers. The difference between offers and bids in Indonesia remains around $10/mt cfr. The weekly Davis Index for HMS 1&2 (80:20) rose by $3/mt cfr Jakarta.
- The indexes for P&S 5ft and #1 HMS rose by $7/mt and $5/mt cfr Jakarta, respectively. The weekly Davis Index for #1 busheling increased by $4/mt cfr. No deals were heard for the grade.
- The weekly Davis Index for shredded rose by $6/mt cfr.
- The weekly Davis Index for domestic HMS 1&2 (80:20) rose by THB200/mt($6/mt) delivered Rayong mill, inclusive of taxes, amid stable demand. Mills preferred local scrap amid higher imported prices.
- The bullish imported scrap market gave Indonesian billet makers hopes of catering to Chinese demand. This encouraged a few buyers to restock ferrous scrap. Domestic short supply of ferrous scrap also added to the price rise this week. ($1=THB30.3)
- The weekly indexes for HMS 1&2 (80:20) fell by MYR80/mt ($19/mt) and MYR70/mt delivered western mills and eastern mills, including taxes, respectively. A fall in global iron ore prices and weak domestic demand pulled prices down.
- Mills are cautiously buying domestic scrap and avoiding imports. Yet, offers for imported US-origin HMS 1&2 (80:20) rose by $15-20/mt cfr Malaysia on bullish global cues. ($1=MYR4)
- Indian ferrous scrap offers maintained an uptrend despite weak demand this week. Mills preferred domestic material as offers for imported scrap rose by $40-50/mt from early November.
- A few states in the country are dealing with renewed COVID-19 restrictions which could hamper finished steel demand in the next few weeks.
- Shipping lines are grappling to secure empty containers from the US to Asia route. Steel demand has improved globally, especially in the Asian market. Additionally, healthy demand for ferrous scrap in the US has pushed up export offers.
- The Davis Index for containerized shredded on a cfr Nhava Sheva basis, increased by $3.08/mt from Thursday and by $8.85/mt from a week ago.
- The Davis Index for UAE-origin HMS 1&2 (80:20) cfr Nhava Sheva, rose by $10/mt from Nov 20. There were no offers from the US and Australian bulk suppliers.
- Trades for containerized Australian HMS 1&2 (80:20) reported on a cfr Chennai basis with the index for the grade rising by $16/mt from Nov 20. A few trades for Australia and UK-origin HMS 1&2 (80:20) were at $345-350/mt cfr Nhava Sheva, with suppliers holding onto material expecting a $10/mt hike in the coming days.
- The indexes for #1 busheling and turnings scrap on a cfr Nhava Sheva basis were up by $18/mt and $14/mt, respectively, from the prior week. The index for P&S rose by $12/mt cfr Nhava Sheva from the Thursday prior.
- Indian mills stayed away from bulk billet exports amid expectations of higher realization in the domestic market. Chinese producers offered domestic billets at CNY3,620/mt ex-Tangshan Friday, up by CNY30/mt from a day ago.
- The domestic ferrous scrap market softened this week. Most market participants believe prices are in a corrective phase, since the bullishness could not be met with enough demand.
- In Mumbai, the index for HMS 1&2 (80:20) declined by Rs200/mt. Maharashtra is faring comparatively better than other states where a surge in COVID-19 cases has renewed restrictions.
- In Mandi Gobindgarh, the index for HMS 1&2 (80:20) fell by Rs800/mt del mills. ($1=Rs73.97)
- Imported ferrous scrap bookings in Pakistan were slow as finished steel demand remains under pressure. Mills are thus resorting to a just-in-time strategy to manage their inventories.
- The Davis Index for containerized shredded, Friday, gained $8.39/mt from Nov 20 cfr Port Qasim. Most US suppliers stayed away from the market due to depleting stocks along with the Thanksgiving holidays.
- The Davis Index for UAE-origin HMS 1&2 (80:20) increased by $3/mt cfr Port Qasim from Thursday and by $15/mt from a week ago. Mills preferred shredded over HMS scrap to avoid paying extra taxes imposed on the imports of the latter.
- The index for US-origin HMS 1&2 (80:20), Friday, was up by $12.41/mt from Nov 20. Amid this second wave, some shipping lines have either canceled orders or deferred scheduled deliveries due to container shortage and rush to secure empty containers.
- The weekly Davis Indexes for P&S and #1 busheling cfr Port Qasim, were up by $12/mt and $20/mt, respectively. Trades for other premium grades of scrap resumed this week to offset the shortage of shredded.
- There were no offers from South African suppliers as their International Trade Administration Commission has decided to ban ferrous scrap exports to support the domestic industry.
- In the domestic market, Bala billet prices ex-works Punjab, up by PKR750/mt from a week ago. The weekly Davis Index for G-60 rebar rose by PKR1,750/mt ex-works Karachi. All mills canceled discounts on finished steel amid a cash crunch. Market conditions remain unsupportive for 100pc capacity utilization and continuous production. During winters, many mills could cut back hours.
- The index for Art Q toke scrap equivalent to a mix of HMS and P&S jumped by PKR750/mt ex-yard Lahore, Friday, from late last week. The weekly index for Pure Q Toke (shredded) increased by PKR1,250/mt ex-yards in line with rising imported scrap prices. ($1=PKR159.3)
- Bangladeshi ferrous scrap prices reached a 28-month high after rising by $15-20/mt this week on strong global cues. High input costs forced medium and small-scale steelmakers to raise rebar offers, while domestic billet prices jumped by $45-50/mt in the last 10 days.
- The Davis Index for containerized US-origin HMS 1&2 (80:20) on a cfr Chattogram basis rose by $2.95/mt from Thursday and by $16.95/mt from a week earlier. Some mills are avoiding imports from the US and UK due to delays in shipment amid tight vessel space.
- The index for Latin America-origin HMS 1&2 (80:20) rose by $3/mt from Thursday, while gaining $22/mt from Nov 20.
- The weekly Davis Index for containerized shredded and busheling rose by $21.07/mt and $22/mt from the prior week. Blue steel from Australia and the UK traded early this week. The index for P&S from the UK rose by $21/mt from Nov 20, and no buyers responded to those levels.
- On the back of high input costs, the weekly Davis Index for domestic billet, Friday, jumped by BDT4,000/mt ex-works Chattogram with trades at the index price.
- The weekly Davis Index for rebar from medium-scale steelmakers ex-works, increased by BDT2,500/mt. Large scale rebar makers have held rebar prices largely unchanged to encourage sales amid weak demand. Also, the gap between medium-scale rebar producers and large-scale producers narrowed to BDT2,500/mt compared to the usual BDT5,000/mt.
- The weekly index rose for domestic shipbreaking scrap equivalent to P&S rose BDT3,000/mt ex-yards on Friday. Offers for scrapped vessel imports prices rose by $10-20/ldt amid delays in arrival due to seasonal concerns. Prices are expected to rise further with the two-month cartel system coming to an end in the prior week. ($1= BDT84.68)
- The weekly Davis Index for CIS basic pig iron surged by $51/mt fob Black Sea basin on Friday amid an acute shortage of the material and an uptrend in global ferrous scrap and steel product markets.
- Demand for pig iron from the CIS remained high at foreign outlets in the last week of November and many transactions were reported. Suppliers achieved a significant price increase due to scarce availability.
- The US market was active with a Russian exporter selling 50,000mt of pig iron at $452/mt cfr for March shipment, along with a similar cargo at $430/mt cfr for February shipment around a week ago. Both cargoes will be shipped from the Baltic Sea basin.
- Turkey continued pig iron purchases from the CIS Black Sea basin with a Ukrainian supplier signing a contract at $475/mt cfr for 5,000-10,000mt of the material, and a Russian exporter closing two deals at $440/mt fob and at $465/mt fob, respectively.
- Business activity slowed down in China with the only booking of 10,000-20,000mt of pig iron at $434/mt cfr from Far East Russia.
- The weekly Davis Index for CIS pig iron in Italy surged by $58/mt on Friday amid higher offers and a huge price increase at alternative outlets.
- The weekly Davis Index for basic pig iron (BPI) increased by $36/mt cfr New Orleans port on Thursday amid a higher priced sale to the US from the CIS. The deal closed late last week and is scheduled for February shipment from the Baltic Sea.
- Price tags for metallic imports and domestic scrap have been escalating at a faster pace throughout November as supplies are tightening and demand continues to strengthen.
- Pig iron availability will be limited as some producers are sold-out, likely through February, also following several recent sales to China, Turkey, and Italy from the CIS at $415-422/mt cfr. This compares to $395/mt cfr levels at the start of November.
- These price points would be equivalent to $408-409/mt cfr Nola, as some US buyers pointed out in surprise, considering the latest US deal that closed more than $20/mt above that point.
- Additional BPI buying activity occurred in the US this past week, in the low $400/mt cfr range, however, it was quickly made obsolete when larger gains transacted.
- The Davis Index for nodular pig iron (NPI) imports ticked up by $2/mt cfr Nola. The material remains limited in supply with few offers; however, market participants assess the price level for NPI into the US market around $440-445/mt cfr Nola.
- The weekly Davis Index for US hot briquetted iron (HBI) imports rose by $3/mt cfr Nola. US buyers mention the material has not been in demand, but the grade is projected to be priced at this level, based on price trends for similar scrap alternatives.
- Sponge manufacturers have reduced offers despite a shortage of iron ore and resulting firm prices. Still, mills shied away from making purchases.
- In Mandi Gobindgarh, the index for Sponge iron declined by Rs700/mt, while in Mumbai, it fell by Rs800/mt in a week.
- Considering that iron ore prices have almost doubled in India in the past few months, the steel minister has hinted at a short-term export ban to aid the domestic steel industry. ($1=Rs73.83)
India semi-finished and finished steel
- The Davis Index for billet in Mumbai dropped by Rs200/mt ($2.7/mt) from the previous Thursday. Prices weakened early in the week, but brisk trades aided some recovery towards the weekend. The index for rebar increased by Rs400/mt ($5.4/mt) on healthy sales.
- In Raipur, the index for billet dropped by Rs900/mt ($12.15/mt) from the previous Friday as buyers stayed away due to high prices. The prices also dropped due to low finished steel demand. The index for rebar was down Rs300/mt ($4.05/mt) Demand was moderate.
- In Mandi Gobindgarh, the index for ingot increased by Rs800/mt ($10.8/mt) from the last Friday.
- In Jalna, the bi-weekly index for billet dipped by Rs1,000/mt ($13.5/mt) on Thursday compared to the previous week amid a fall in local scrap prices. The bi-weekly index for rebar was also down Rs500/mt ($6.75/mt) on moderate demand.
- In Durgapur, the bi-weekly index for billet was down by Rs1,000/mt on Thursday from last week. The bi-weekly index for rebar fell by Rs900/mt.
- Shipbreaking prices dropped over the last week amid sluggish demand from the re-rollers in Mandi Gobindgarh and Gujarat.
- The daily Davis Index for 4ani dropped by Rs500/mt ($6.76/mt) and 10Ani fell by Rs850/mt ($11.50/mt), compared to the prior week.
- Shipbreakers have reduced offers to clear off the inventory. The daily Davis Indexes for 12Ani fell by Rs800/mt and 14Ani dropped by Rs750/mt over last week.
- The daily Davis Indexes for 2kg fell by Rs400/mt and 5kg plates declined by Rs800/mt with limited trades reported. The shipbreakers expect the prices to rise in the coming week.
- Among the other grades, HMS attachments dropped by Rs1,500/mt, while Melting rose by Rs400/mt on Friday with a few trades reported. ($1=Rs73.83)