Ferrous Market Update 10/16/2020

 

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) slid by $0.30/mt on Friday after buyers rejected higher offers. 
  • Turkish mills succeeded in avoiding a price increase to $290/mt cfr for HMS 1&2 (80:20) from the USA and the Baltic region and purchased around 200,000mt of the material during the last five days with no new deals reported on Friday. 
  • Mills still require a number of cargoes for November shipment, but the $3-5/mt gap between bids and offers remains as buyers continue to bid at $285-287/mt cfr, while some suppliers are firm on achieving sales at $290/mt cfr.
  • No significant changes were heard in the Turkish rebar market on Friday. As a result, the daily domestic spot rebar prices remained in the range of TRY4,120-4,170/mt ex-works, including 18pc VAT, while the daily exported rebar prices were unchanged.
  • Some billet sales were done in the Iskenderun at $416-417/mt ex-works this week, according to market participants. ($1 = TRY7.90)

 

Turkey domestic

  • The weekly Davis Index for Turkish DKP scrap climbed by TRY7/mt ($0.90/mt) on Monday and inched up by TRY8/mt ($1/mt) for extra grade scrap. 
  • One integrated steel mill chose to raise its purchase prices considering its needs, though others kept their rates unchanged from last week.

In Izmir, most Turkish mills decreased their purchase prices for shipbreaking scrap to $280/mt delivered, and one producer dropped them further to $275/mt delivered. Purchase prices varied in the range of $280-285/mt delivered a week ago.

 

CIS

  • The weekly Davis Index for HMS 1&2 (80:20) slid by $1/mt fas Baltic Sea and was unchanged in the Black Sea region on Monday.
  • Only two transactions were reported in the Russian ferrous scrap export market amid sluggish trading as suppliers and buyers remained at loggerheads over transaction prices.

Collection prices were also almost unchanged in the Russian market. The weekly Davis Index for HMS 1&2 (80:20) declined by RUB150/mt ($2/mt) in St Petersburg dock on Monday and was flat in Rostov-on-Don dock. ($1 = RUB77.07)

 

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region declined by €2/mt ($2/mt) on Tuesday after prices dropped in the most recent deals in Turkey.
  • Collection prices for ferrous scrap decreased in the Netherlands and Belgium as Turkish importers, who were pushing for lower prices for European material, achieved their desired rates in bookings from the USA. (€1 = $1.17)

 

UK dockside

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices declined by £5/mt ($7/mt) delivered dockside, on Tuesday.
  • UK bulk processors pushed through a £5/mt cut to dockside purchase prices to better reflect trading conditions in major seaborne trade routes.
  • Despite slow orders from export markets, weak UK prices have been propped up by demand from local integrated mills who have proportionately increased their scrap use over the past few months.
  • The weekly indexes for north and south UK OA (Plate & Structural) declined by £5/mt delivered dockside on Oct 13.
  • Davis Index’s north and south UK 5A/5C (frag feed) ferrous scrap indices were both unchanged delivered dockside over the past week. (£1 = $1.31)
  •  

UK domestic

  • Davis Index’s monthly UK 1&2 and 3B, ferrous scrap indices fell by £5/mt ($7/mt) delivered to mill, respectively, while OA dropped by £10/mt delivered following the conclusion of mill-yard negotiations in October.
  • Local ferrous scrap merchants, who concluded negotiations in the first few days of the month could secure transactions at unchanged prices compared with September’s levels.
  • Those suppliers that drew out negotiations to the first week settled down £5/mt, while those that completed in the second week of October conceded £10/mt.
  • Unsurprisingly, domestic pricing action has reflected developments in the UK ferrous scrap dockside markets, which have also fallen by approximately £10/mt over the past two weeks.
  • UK-based traders commented that demand from domestic integrated smelters had rebounded as ferrous scrap use has proportionally displaced costlier hot metal consumption.
  • Davis Index’s monthly UK 4A/4C and 8A/8B ferrous scrap consumer indices declined by £7-10/mt, respectively, while 12A/C scrap fell by £10/mt delivered over the same period.

 

Spain

  • Davis Index’s weekly northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices edged up by €1/mt ($1/mt) on Friday.
  • Bulk ferrous scrap processors raised offer prices for new cargoes of HMS 1&2 (80:20) by up to €5/mt to reflect the modest rebound seen in major seaborne trade routes.
  • That said, some Spanish mill buyers believe there are more downside risks for local steel consumption given the impact of a proposed four-tier lockdown to abate the spread of COVID-19. 
  • As a result, domestic steel producers are reluctant to accept higher offers and have kept bids within touching distance of the last transactions concluded last week.
  • Meanwhile, Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices both increased by €5/mt on Oct 16. (€1 = $1.17) 

 

Germany domestic

  • Davis Index’s monthly German ferrous consumer scrap indices increased by around €2/mt ($2/mt), depending on grade and location, following the conclusion of mill-yard negotiations in October.
  • German ferrous scrap buyers entered into negotiations this month with bids of €5/mt lower compared with transactions from the prior month, however, it soon became apparent that mills had to increase bids to secure volumes in response to robust local demand.
  • East Germany-based mills were prompted to pay €3-6/mt higher compared with the prior month because of reduced ferrous scrap availability from Polish suppliers, given that they could achieve higher prices in their local market.
  • Steel mills in North and South Germany registered smaller price hikes compared to other regions, largely because of reduced competition between domestic and export markets, particularly to Italy and Turkey.
  • North German ferrous scrap indices were either up or down €3/mt depending on grade, while East German monthly ferrous scrap indices increased by €3-6/mt in October.

South German ferrous scrap indices fluctuated by €0-2/mt over the past month and West German ferrous scrap indices varied by €3-8/mt.

 

US dockside

  • US East Coast dock collection prices for ferrous scrap were relatively close to last week’s levels amid continued, low export activity and a healthy supply of material for most grades and dock locations. 
  • However, the Houston dock witnessed upward momentum and price growth due to a return in Turkish activity. Mexico is seeing elevated demand with prospects to export scrap at rising prices, which is also affecting scrap tags in Houston.
  • Industry participants anticipate the East Coast dockside market to hover at current price levels with HMS 1&2 (80:20) at $220-230/gt. Otherwise, prices could move down slightly through the rest of October. 
  • Domestic scrap trading wrapped up on Oct 9 with price points unchanged or concluding with soft movements against September. The export market could see activity in Asian markets pick up soon. However, proposals between the US and Turkey have lingered near $290/mt cfr since late September.
  • In Boston, the weekly Davis Index for export yard HMS 1&2 (80:20) moved up by $2/gt delivered dock. P&S 5ft remained unchanged while shredder feed slipped by $6/gt delivered. 
  • Some sellers believe bulk exporters at the Boston dock are experiencing some tightness in supply, which is holding up HMS 1&2 (80:20) prices for now.
  • The weekly Davis Index for export yard buying prices in New York declined by $1/gt delivered for HMS 1&2 (80:20). P&S 5ft was flat, while shredder feed slipped by $3/gt delivered. 
  • In Philadelphia, the index for export yard collection prices of HMS 1&2 (80:20), P&S 5ft, and shredder feed ticked down by $2/gt delivered. 
  • Sellers to bulk exporters in New York and Philadelphia believe current prices will stand over the next two weeks, or possibly fall by $5/gt.
  • In Houston, the weekly Davis Indexes increased by $17/gt for HMS 1&2 (80:20), while P&S 5ft moved up by $14/gt. Shredder feed rose $13/gt delivered.
  • US West Coast ferrous scrap dock prices were rangebound on Tuesday after a solid decline last week. Docks in Los Angeles, Seattle, and Portland mostly maintained prices as container and bulk sales to Asian markets resumed after the Golden Week holiday in those countries.
  • Uncertainty reigned with sellers’ opinions varying on price movements. With firmer export scrap prices and increased inquiries from Asian buyers this week, dock price indexes are expected to trend flat to up for the remainder of the month. 
  • Japanese export scrap prices firmed up by $5-10/mt depending on destination amid support from Chinese scrap demand. 
  • Destinations such as Pakistan, Bangladesh, India, and Vietnam are encountering some recovery against the recent weak steel demand, which will support an increase in imported scrap activity. 
  • South Korea and Taiwan are contending with flat or weak finished steel demand but could increase scrap import inquiries to supplement domestic buys.
  • Malaysia and Thailand could strike deals for imported scrap despite concerns with the local economic drivers and sluggish finished steel demand. 
  • As mills target local scrap supplies, domestic prices may increase as inventories dwindle, thereby, supporting higher scrap import prices from Japan, the US, and Russia.
  • The weekly Davis Indexes in Portland decreased with HMS 1&2 (80:20) slipping by $8/gt delivered, while P&S 5ft and shredder feed declined by $1/gt. 
  • Scrap buying offers from regional mills in the Pacific northwest were sideways in October as docks buying prices declined. 
  • Several sellers expected an upward adjustment to the latter this week, but others attribute the slight decline to softer scrap price expectations in November trading. Although, given the upward trend in export demand and prices along the West Coast, Portland may find it necessary to adjust prices upward within the month.
  • In San Francisco, the weekly indexes were rangebound with HMS 1&2 (80:20) and shredder feed increasing by $1/gt, and P&S 5ft decreasing by the same amount. 
  • The weekly Davis Indexes in Los Angeles were flat with HMS 1&2 (80:20) unchanged, P&S 5ft holding, and shredder feed declining by $1/gt. 
  • Dock prices in Los Angeles decreased at the list level in early October. Davis Index was informed that docks had anticipated the need for an additional decline in mid-October but given the upward price trend and increasing demand in a period of tight scrap inventories, the potential price decrease is no longer under consideration this week. 

 

US containers

  • The US containerized ferrous scrap indices began to increase for some grades on Thursday, as Pakistani and Indian buyers increased inquiries on improved finished steel sales expectations. 
  • Taiwan and South Korea also resumed negotiations after returning from a week-long national holiday. 
  • US domestic scrap traded mostly sideways in October with some deals that achieved premium pricing in September declining. Additionally, those that did not place scrap inventories at the offer price were left with material even after returning to accept lower prices as mill buying books closed. 
  • The expectation over the past two weeks has been predominantly of a soft US domestic November market. However, with the recent export uptick and early mill activity, is changing dealer sentiment to a sideways to firm market next month. 
  • The weekly Davis Indexes in New York for #1 busheling increased by $1/mt fas while P&S 5ft rose by $2/mt fas and shredded moved up by $4/mt. On the other hand, HMS 1&2 (80:20) decreased by $3/mt and turnings declined by $11/mt fas. Buyers favored higher grades. 
  • Sellers who preferred to maintain inventories on the expectation of rebound last week, limited discounts on higher grades and could capture the gain from buyers such as India this week.
  • The Los Angeles Davis Indexes for containerized scrap rose across all grades except #1 busheling, with HMS 1&2 (80:20) increasing by $7/mt with P&S 5 ft and shredded both rising by $2/mt. The index for busheling declined by $6/mt fas on decreased buying interest resulting in oversupply and active discount offers by some sellers. Ongoing specification issues are also a concern, as some buyers do not consider West Coast busheling equivalent to that from other regions. 
  • Tight scrap inventories, a sideways to strong sideways outlook surfacing for US domestic scrap, and active export inquiries are expected to support containerized prices through the end of the month. 
  • Japanese export volumes, an alternative to US-sourced scrap have been discounted through the week.  Although, market participants expect Japanese ferrous scrap prices to rise amid global cues. 
  • The Davis Indexes in San Francisco mostly increased with HMS 1&2 (80:20) and P&S5ft rising by $9/mt and $3/mt fas, respectively. The index for #1 busheling fell by $1/mt and shredded trended flat.
  • In Seattle, the container indexes are expected to firm up once dealers return to the market next week. The index for #1 busheling and P&S 5ft decreased by $4/mt as HMS 1&2 (80:20) increased slightly by $2/mt fas on the latest activity including bids. The shredded index declined by $2/mt fas.

 

Mexico

  • Domestic ferrous scrap prices in Mexico were flat in North Mexico but varied according to grade in Bajío and Central areas amid strong demand from the automotive and manufacturing industries.
  • In North Mexico, the weekly Davis Indexes for HMS 1&2 (80:20), P&S 5ft, and shredded remained unchanged. Machine shop turnings moved up to MXN12/mt and #1 busheling rose by MXN162/mt.
  • Prices in the North are expected to rise by MXN150/mt ($7.09) for some grades amid strong demand from the auto industry, while those in Bajío could fall as mills in that region are mulling price drops.
  • The weekly Davis Indexes in Bajío increased by MXN51/mt for HMS 1&2 (80:20) while #1 busheling rose by MXN92/mt. P&S 5ft fell by MXN42/mt, shredded decreased by MXN351/mt, and machine shop turnings went down by MXN42/mt.

In Central Mexico, the weekly Davis Indexes rose for HMS 1&2 (80:20) by MXN88/mt, for P&S 5ft by MXN788/mt, and for machine shop turnings by MXN38/mt. Shredded fell by MXN419/mt and #1busheling decreased by MXN75/mt. ($1=MXN21.13)

 

Japan  

  • Japanese ferrous scrap export prices trended down this week since most buyer countries in Asia lowered bids amid weak finished steel demand. 
  • Market participants lowered offers in keeping with the global market to boost trades in the export market. 
  • In the domestic market, Tokyo Steel kept its purchase price for scrap unchanged for the third week. But bids by the steelmakers could increase in the coming days on the back of a rise in steel demand. 
  • Japanese HRC prices were also under pressure due to a fall in iron ore prices and the availability of lower-priced material from China. 
  • In the Kanto region, the index for #2 HMS declined by JPY600/mt fas from the week prior, while fas prices increased on Friday by JPY500/mt. The index for #2 HMS fell by JPY1,400/mt fob Japan. 
  • In the domestic market, the weekly index for #1 busheling (Shindachi) fell by JPY500/mt with deals heard on fas basis. 
  • The index for shredded settled down by JPY550/mt fas amid a dip in trades. South Korean mills were said to be negotiating for more bulk cargoes. 
  • The index for #1 HMS was down by JPY700/mt fas and by JPY1,125/mt fob Japan. 

Yards offered Japanese HMS 1&2 (50:50) at prices, which were down by $5-10 from the prior week. But in the near term, the scenario could change since steelmakers are likely to ramp-up production. ($1= JPY105)

 

South Korea  

  • The weekly Davis Index for containerized HMS 1&2 (80:20) Wednesday settled down $3/mt cfr. After the Chuseok holidays, trades for containerized scrap have thinned. Some mid-sized EAFs are yet to show buying interest. 
  • Domestic scrap prices were flat this week, but mills state bids could fall by KRW10,000/mt on sluggish steel demand on Monday.
  • The Davis Index for domestic Heavy A delivered Incheon and Pohang, Tuesday, settled flat at delivered mills, with major steel mills like Hyundai and Dongkuk buying limited volumes. 
  • South Korean mills expect finished steel export and domestic demand to recover, aided by China’s imports. 
  • The weekly Davis Index for P&S 5ft, #1 HMS, and shredded fell by $3/mt cfr South Korea. There were very few sellers in the market for containerized scrap as South Korean buyers focused on low-priced bulk scrap. 
  • South American suppliers offered HMS 1&2 (80:20) at prices that were unchanged from last week due to a shortage of ferrous scrap supplies from the region.

Dongkuk, POSCO, and Hyundai Steel are negotiating deals with Japanese and US yards. ($1=KRW1,146)

 

Taiwan  

  • Weak domestic demand pressured imported scrap prices in Taiwan despite strengthening global markets. Trading thinned this week due to increased asking prices amid limited supply. The Davis Index for containerized US-origin HMS 1&2 (80:20), Friday, was unchanged cfr Taiwan from the day prior but fell by $9/mt from Oct 5. 
  • Feng Hsin Steel kept purchase prices for domestic HMS scrap flat amid pressure on the steel prices. 
  • The weekly Davis Indexes for containerized P&S 5ft, #1HMS rose by $1/mt cfr on rising offers, but bids were unchanged.
  • The weekly Davis Indexes for domestic HMS 1&2 (80:20) in South and North Taiwan were flat delivered mill.

In the domestic market, China Steel Corporation hiked flat steel prices for November deliveries by 5pc or NTD1,100/mt ($38/mt) effective Oct 13. The company expects domestic demand to recover and persist into Q4 FY 2020. ($1=TWD28.8)

 

China

  • In China, Shagang Steel raised domestic scrap prices and finished steel prices for October deliveries. The weekly Davis Index for the grade was up by CNY30/mt from a week ago. 
  • Prices for billets in the domestic market rose by CNY110/mt ex-Tangshan mill on Tuesday, from the last week. Domestic scrap prices in China could increase in the coming week as demand for finished steel could rise in the near term. ($1=CNY6.7)

 

Vietnam 

  • In the containers market, the weekly index for US-origin HMS 1&2 (80:20) settled down by $3/mt cfr, with few deals at the index price. 
  • Mills concentrated on purchasing Japanese and Russian bulk scrap. 
  • The increase in US-origin containerized scrap prices hit trades. But Japanese ferrous scrap export prices declined.
  • Only a few deals were heard for US-origin P&S 5ft in containers. The weekly index for P&S 5ft was down by $2/mt cfr. 
  • The weekly indexes for #1 busheling and shredded fell by $4/mt cfr.
  • Vietnamese mills, including Formosa, raised HRC offers by $10-15/mt cfr this week since China booked material from Vietnam and Russia. China halted imports in the latter part of the week due to high inventory and volatility in iron ore and coal prices. 
  • Ban on Australian coking coal further aggravated bearish sentiments.
  • In the bulk market, a deal for #2 HMS from Japan was reported on a cfr basis this week. 
  • Vietnamese mills looked at the Russian market for lower-priced bulk. 
  • South Korea-based Dongkuk Steel booked Russian A3 on a cfr basis. 
  • The weekly Davis Index for HMS 1&2 (80:20) rose by VND1,62,500($7/mt) cfr South Vietnam inclusive of taxes, with limited deals heard at index prices. A shortage of ferrous scrap in the domestic market and lower volumes of scrap imports lifted prices. 
  • A deal for 20,000mt billet cfr China for December shipment last week firmed billet offers.

In the bulk market, Japanese offers for #2 HMS were flat on a fob basis. ($1=VND23,180)

 

Indonesia

  • Indonesian mills focused on domestic scrap purchases. They, however, imported billets this week. 
  • The news of an extension granted for export registration norms until Jan 1, 2021, boosted offer prices on Thursday but buyers are still waiting for an official announcement from the Indonesian government before booking imported ferrous scrap.
  • Such an announcement could raise prices in the coming days. 
  • The weekly Davis Index for HMS 1&2 (80:20) fell by $1/mt cfr Jakarta. 
  • The weekly Davis Index for #1 busheling scrap rose by $5/mt cfr Jakarta amid rising offers due to an increase in demand from Turkey and other Asian countries.
  • The indexes for P&S 5ft and #1 HMS fell by $1/mt and $3/mt cfr Jakarta, respectively. 
  • Indonesian billet imports would decrease if registration process extension is confirmed, said traders.

 

Thailand

  • The weekly Davis Index for domestic HMS 1&2 (80:20) fell by THB50/mt ($1.6/mt) delivered Rayong mill inclusive of taxes. Mills limited purchases this week after three weeks of active buying. 
  • Scrap imports could rise in the coming weeks with a firm demand for billets in China. 
  • Sluggish domestic finished steel demand is still a cause of concern for many mills, especially those dependent on construction and infrastructural sectors. ($1=THB31)

 

Malaysia 

  • The weekly indexes for HMS 1&2 (80:20) were flat delivered western mills and eastern mills. 
  • Traders refused to sell scrap at present bid levels. But demand for ferrous scrap could rise amid active billet buying by China. 

Market participants are expecting domestic demand for finished steel to remain subdued in the next few weeks amid an increase in COVID-19 cases. ($1=MYR4.15)

 

India 

  • Indian steel mills witnessed a recovery in finished steel demand early this week, boosting imported ferrous scrap trades. Offers rose by $5-10/mt as buyers resorted to restocking scrap inventories. 
  • The government is optimistic about the new COVID-19 cases declining overall, despite higher infection rates in a few states.
  • The Davis Index for containerized shredded, Friday, rose by $1.37/mt from the day prior and up by $5/mt from a week earlier.   
  • The Davis Index for HMS 1&2 (80:20) from UAE, Friday, rose by $2/mt cfr Nhava Sheva from Thursday and up by $9/mt from a week earlier. 
  • Turning scrap traded this week in limited volumes amid an uptick in HMS prices. The weekly index for Turning scrap cfr Nhava Sheva rose by $6/mt from last week. 
  • After a long break, Indian mills resumed trades for premium grades like busheling and P&S scrap. In the export market, billet offers increased on the back of strengthened Chinese demand post-Golden Week Holiday. ($1=Rs73.33)

 

India domestic

  • Indian domestic ferrous scrap prices rose early this week but lost steam subsequently. 
  • The Davis Index for HMS 1&2 (80:20) declined by Rs200/mt ($2.72/mt) del Mandi Gobindgarh from the day prior but rose by Rs300/mt from a week ago. 
  • On Friday, Mumbai mills limited purchases as three days of downpour slowed down the movement of goods and paused construction activities in Maharashtra.

From the prior day, the index for HMS 1&2 (80:20) was unchanged but rose by Rs400/mt del mill from the prior week.

 

Pakistan  

  • Sentiment for ferrous scrap imports in the Pakistani market strengthened over this week, though trades were slower, as buyers sought clarity on price direction from the global markets. 
  • Appreciation of the Pakistani currency against the US dollar to PKR162.5 on Friday from PKR166.5 a month ago could encourage trades in the next few days.
  • The Davis Index for containerized shredded, on Friday, was unchanged cfr Port Qasim from Thursday but gained $7/mt from the prior week. 
  • On Friday, the Davis Index for UAE-origin HMS 1&2 (80:20) increased by $10/mt cfr from a week ago. Trades for UAE-origin mixed #1 HMS and P&S sarya scrap were up by $5/mt from the prior week. 
  • Offers for South African scrap jumped by $5-10/mt as the African government intends to lower exports. However, the supply was very scarce. 
  • Trades for busheling scrap reported were at lower prices, with many supplier countries receiving lower bids from other Asian markets. But with Indonesia resorting to active trading could lift prices. 
  • Billet prices dropped on weak demand, but rebar offers were flat amid expectations of recovery. 
  • The weekly Davis Index for commercial Bala billet fell by PKR550/mt from the prior week. Rolling scrap prices rose amid limited supply and thereby gave CC billet prices a lift. 

The weekly Davis Index for G-60 rebar rose by PKR800/mt ex-works Karachi. Improving imported scrap market prices increased trades of domestic scrap in Pakistan. Still, the weekly index for Pure Q Toke (shredded) dropped by PKR50/mt ex-works as supply eased. ($1=PKR162.46)

 

Bangladesh

  • A leading steelmaker bought 27,000mt HMS 1&2 (80:20) from Australia and New Zealand at prices $5-10/mt up from last week’s bid levels. A few buyers looked to stock up before prices increase. Dipping inventories also encouraged buyers to restock materials. 
  • GPH Ispat has signed a contract with a Chinese company to export 25,000mt MS billets. 
  • The Davis Index for containerized shredded was up by $4/mt from a week ago. The index for containerized US-origin HMS 1&2 (80:20) rose by $9/mt from the prior week. 
  • Domestic steel demand in Bangladesh is yet to return to the pre-COVID-19 levels. Though activities are picking up and end-user demand may rise in the coming days. 
  • The weekly index for domestic billet Friday fell by BDT500/mt, with trades at the index price. 
  • The weekly Davis Index for rebar from medium steelmakers settled down by BDT250/mt. Small scale steelmakers offered rebar at prices down by at least BDT3,000-5,000/mt ex-works compared to the prices quoted by large steel producers like BSRM and AKS. 

Shipbreaking scrap showed mixed trends, and the grade equivalent to P&S traded at prices up by BDT250/mt from last week. ($1=BDT84.79)

 

Metallics

 

CIS 

  • The weekly Davis Index for CIS basic pig iron increased by $3/mt in the Black Sea region on Friday amid new sales to China.
  • After around two weeks of silence, an international trader purchased 50,000-55,000mt of pig iron from Russia at $387/mt cfr China for January shipment, while another trader bought the same quantity from Russia at $388/mt cfr for December shipment. Prices did not change significantly as before the holidays in Asia, deals for CIS material were closed at $385-390/mt cfr China.
  • The weekly Davis Index for CIS pig iron in Italy was flat at $375/mt cfr on Friday. However, some deals are anticipated as negotiations resumed this week. Offers from the CIS were reported at around $380/mt cfr and bids at around $370/mt cfr.

 

US

  • The weekly Davis Index for basic pig iron (BPI) remained unchanged on Thursday as import markets remained quiet while awaiting further cues on price direction. 
  • Trading activity has decelerated over the past three weeks while recent, October domestic scrap prices have softened, more than expected. 
  • Offer levels for BPI into the Gulf Coast are still around $390/mt cfr Nola, for December or January shipment, which has been the approximate level since Sep 17. The most recent BPI sale confirmed to the US concluded in late September when the CIS sold a few cargoes at $387-390/mt cfr Nola. 
  • Offer prices from the CIS into China stand at $390/mt cfr while buyers are bidding slightly less, around $385/mt cfr China, unchanged from Oct 8.
  • The Davis Index for nodular pig iron (NPI) imports remained unchanged as the supply of the grade is tight with no offers or deals confirmed recently.
  • The weekly Davis Index for US hot briquetted iron (HBI) imports was flat on Thursday. New activity has not been reported for HBI due to low demand. 

 

India

  • The index for Sponge iron settled flat on Friday from the day prior delivered to Mandi Gobindgarh mill but increased by Rs700/mt from a week ago. 
  • In Mumbai, the index for sponge iron rose by Rs300/mt from Thursday and by Rs1,500/mt from a week ago. 
  • Sponge manufacturers believe prices could decline in the coming days, weighed down by low demand due to heavy rains. ($1=Rs73.31)

 

India finished steel

  • The index for billet in Mumbai rose by Rs300/mt ($4.09/mt) from the prior Friday following a rise in rebar prices. The index for rebar up by Rs500/mt ($6.81/mt). Rebar demand was healthy early this week but slowed in the latter part. 
  • In Raipur, the daily index for billet rose by Rs150/mt ($2.04/mt) from the previous Friday amid a surge in sponge iron prices. The index for rebar was up by Rs100/mt ($1.36/mt). 
  • In Mandi Gobindgarh, the index for ingot rose by Rs150/mt from a week ago due to a rise in local scrap prices. In Jalna, the bi-weekly index for billet rose by Rs700/mt ($9.54/mt) on Thursday from the previous week, due to a rise in rebar prices. The index for rebar increased by Rs900/mt ($12.27/mt) on healthy demand.
  • In Durgapur, the index for rebar rose by Rs674/mt ($9.91/mt) ex-works Thursday ex-works amid sluggish demand. Rebar demand in the domestic market is unlikely to revive until the end of 2020, believe manufacturers. The index for billet rose by Rs737/mt ($10.05/mt).
  • In Chennai, the index for rebar declined by Rs750mt ($10.23/mt) on Thursday ex-works amid thin trades. Prices could be on a downtrend in the near term amid a lack of infrastructure and real estate projects, said manufacturers. The index for billet rose by Rs850/mt ($11.59/mt).

 

Shipbreaking 

  • Shipbreaking scrap price rose this week amid a gradual rise in demand from the rolling mills. The index for HMS attachments and Melting rose by Rs350/mt($4.77/mt) ex-Alang on Friday from a week ago. 
  • Mills continued to pay higher than usual prices for liquid oxygen. Shipbreakers increased their offers for rolling scrap throughout the week. The index for 8Ani rose by Rs400/mt ex-Alang, and the index for 14Ani rose by Rs200/mt ex-Alang from the prior week.
  • Demand for steel plates remained firm as infra projects picking up slowly. After three days of downpour, however, construction activities paused. 

The index for 1kg and 5kg plates rose by Rs400/mt each on Friday as compared to the previous Friday. Only a few vessels have docked for recycling in the past few days. ($1=Rs73.33)

 

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