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Ferrous market update: April 12-16

Ferrous Market Update 04/16/2021

 

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) was unchanged on Friday as negotiations failed to deliver any confirmed deals at the time of publication.
  • However, a new sale from Venezuela to Turkey was confirmed after the index deadline at a heavy melt price level of $416/mt cfr. The deal equates to around $420-421/mt cfr for US-grade HMS 1&2 (80:20), Davis Index understands.
  • Turkish mills were also heard to have booked a few cargoes from the Baltic region at $420-425/mt cfr for HMS 1&2 (80:20) earlier in the week, but no details or confirmations were available at the time of publication.
  • Asian bulk markets slipped $4/mt lower after a South Korean producer booked a cargo from Russia at an A3 price level of $445/mt cfr. The Davis Index for bulk HMS 1&2 (80:20) cfr Vietnam dropped by $4/mt cfr on Friday, from the prior day.
  • Demand from Turkey for imported ferrous scrap is expected to be slim next week and mills hope to achieve lower prices as some suppliers will likely need to book sales.
  • Trading was limited in the Azov-Black Sea basin with bids dropping to around $395/mt cfr for HMS 1&2 (80:20) from Romania and Bulgaria.
  • Daily domestic spot rebar prices in Turkey declined by TRY20/mt ($2/mt) ex-works on Friday. Icdas dropped its local rebar prices by TRY70/mt ex-works Biga and ex-works Istanbul. All domestic prices include 18pc VAT.
  • Rebar export prices in Turkey were unchanged with no new transactions reported. ($1=TRY8.07) 

 

Turkey domestic

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey increased by TRY65/mt ($8/mt) on Monday amid better demand and higher prices for imported material and steel products.
  • Purchase prices for shipbreaking scrap in the Izmir region remained unchanged for the second consecutive week. ($1=TRY8.15)

 

CIS

  • The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap from Russia’s Baltic Sea and Black Sea regions increased by $17/mt and by $10/mt, respectively.
  • Ferrous scrap exporters in St Petersburg believe that $430-435/mt cfr for HMS 1&2 (80:20) is achievable in Turkey as there were several bookings within the range from other Baltic countries last week. Some Russian exporters are negotiating sales as demand persists in Turkey after strong rebar and billet trading.
  • Offers from Rostov-on-Don remain scarce amid limited scrap flows and unattractive prices for most sellers at foreign outlets.
  • The weekly Davis Index for A3 scrap was flat in St Petersburg dock on Monday and rose by RUB550/mt ($7/mt) in Rostov-on-Don dock. ($1=RUB77.42) 

 

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region increased by €6/mt ($7/mt) on Tuesday as scrap exporters competed with European mills for tonnages.
  • Ferrous scrap suppliers from the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) raised collection prices amid rising competition and strong demand, especially for prime scrap in the EU.
  • Exporters are firm in their offers for HMS 1&2 (75:25) at $425/mt cfr to Turkey and HMS 1&2 (80:20) at $430/mt, cfr even though Turkish buying activity declined this week, as they may redirect cargoes to Egypt after receiving inquiries from that destination. (€1=$1.19)

 

UK dockside

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices climbed by £8/mt ($11/mt) delivered dockside on Tuesday.
  • UK’s ferrous scrap merchants were able to dig another £4-8/mt out of bulk processors over the past week, depending on grade, as dockside prices closely stalked developments in major trade routes.
  • Over the past week, Davis Index’s Turkish HMS 1&2 (80:20) ferrous scrap import benchmark climbed $5/mt higher cfr Turkey.
  • Recent developments have caught UK smelters napping, with regular dockside price hikes prompting local steel producers to constantly revise their bids higher with a ferrous scrap merchant hearing that a large UK mill had revised its bids from down £20-15/mt and then to down £10/mt. At this rate, traders believe there would likely be little to no change in monthly mill-yard ferrous scrap settlements. 
  • The weekly indices for north and south UK OA (Plate & Structural) climbed by £4/mt during the week. Davis’ weekly north and south UK 5A/5C (frag feed) ferrous scrap indices increased by £5/mt delivered. (£1=$1.37)

 

Spain domestic

  • Davis Index’s monthly Spanish consumer ferrous scrap indices edged €5/mt ($6/mt) higher over the past month following the conclusion of monthly mill-yard negotiations in mid-April.
  • Domestic benchmarks recovered to settle higher compared with the same point in the prior month, despite having fallen by as much as €20/mt in late March.
  • Northern Spain’s ferrous scrap import prices largely dictated the direction and quantum of domestic prices, as they tracked developments in the competing deepsea markets, particularly to Turkey.
  • Local ferrous scrap prices have become more exposed to seaborne pricing dynamics with a group of bulk processors in northern Spain building regular deepsea cargoes to Turkey.
  • The Davis Index for E1 (old thin), E3 (old thick), and E40 (shredded) all increased by €5/mt delivered mill. (€1=$1.19)

 

Spain 

  • Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices dropped by €11/mt ($13/mt) cfr on Friday.
  • Offer prices to northern Spain dropped swiftly over the past 48 hours, as weakness crept into major seaborne trade routes and sellers readjusted their levels to reflect sentiment.
  • The anticipated flurry of Turkish purchasing activity has failed to materialize yet and, as such, the healthy quantity of offers available from key exporting nations has eventually depressed prices.
  • Northern Spain’s ferrous scrap import prices will dictate the direction and quantum of domestic prices, as they track developments in competing deepsea markets, particularly to Turkey.
  • Local ferrous scrap prices have become more exposed to seaborne pricing dynamics given that a group of bulk processors in northern Spain regularly build deepsea cargoes to Turkey.
  • Spain is still firmly a net importer of ferrous scrap but exports have surged to an average of 95,000mt per month since October 2020 from an average of 45,000mt per month over the preceding two years.
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices decreased by €12/mt fob during the week. (€1=$1.20)

 

UK domestic

  • Davis Index’s monthly UK 1&2, 3B, and OA ferrous scrap consumer indices dropped by £5-10/mt ($7-14/mt) delivered mill following the conclusion of mill-yard negotiations in April.
  • UK smelters had initially opened negotiations at down £20/mt across all grades earlier in the month, but a semi-revival in the competing dockside and export market prompted some mills to revise their bids higher to secure sufficient volumes.
  • Local merchant suppliers stubbornly held out for as long as possible to bring down the discount compared with settlements recorded in the prior month, with the boldest achieving only a £5/mt reduction versus March’s levels.
  • That said, Davis Index notes that prices for 3B (shredded) and OA (plate & structural) were also relatively well supported by strong domestic and export demand, particularly from Turkey and, more recently, increasing inquiries from China.
  • Meanwhile, those domestic ferrous scrap suppliers who held out the longest are looking at the swift drop in export prices in the past 48 hours that will likely have a consequential impact on dockside rates next week.
  • Davis Index’s monthly UK 4A/4C, 8A/8B, and 12A/C ferrous scrap consumer indices decreased by £10/mt delivered mill over the same period. (£1=$1.38)

 

Germany domestic

  • Davis Index’s monthly German ferrous consumer scrap indices declined on average by €5/mt ($6/mt), depending on grade and location, following the conclusion of mill-yard negotiations in April.
  • Softening export prices, particularly to Turkey, enabled most mills to negotiate modest discounts for April deliveries by mid-month after the Turkish HMS 1&2 (80:20) ferrous scrap import price came off $10/mt in the past 10 days.
  • Germany’s ferrous scrap consumption has remained relatively robust in March and April, with almost all mills, heard to be operating at close to full capacity utilization to meet strong domestic steel consumption.
  • Despite spiralling COVID-19 infection rates and the looming imposition of a fresh nationwide lockdown next week, German steel producers remained bullish on demand from the automotive and construction sectors.
  • Prices for relatively low-quality domestic ferrous scrap grades, such as E5 (turnings), witnessed the largest declines over the past month, as most mills shied away from purchasing inferior quality material to maximise melt yields.
  • Conversely, prime ferrous scrap grades, such as E2 and E8, were little changed in most regions compared with the prior month, as semi-conductor-restricted automotive production rates limited the generation of stampings.
  • North German ferrous scrap indices declined by €3-12/mt delivered mill for Sorte 1 (E1), Sorte 2 (E2), Sorte 3 (E3), Sorte 4 (E40), Sorte 5 (E5), and Sorte 8 (E8). For the same grades, East German ferrous scrap indices decreased €4-10/mt delivered, South German ferrous scrap indices dropped €2-4/mt delivered, and West German ferrous scrap indices fell €3-5/mt delivered mill. (€1 = $1.20)

 

US dockside

  • US East Coast and Houston dock collection prices for ferrous scrap inched up on Tuesday after remaining rangebound over the past four weeks.
  • Dockside prices continue to mirror export price movements with a lag. Exports to Turkey have picked up since Mar 30 yet remained rangebound in the longer term for the last month. Export demand has softened this week following domestic trading activity that wrapped up last week. 
  • East Coast dock sales for #1 HMS were transacting between $335-350/gt on Tuesday with higher and lower variance based on dock location and prior price point. With freight rates tempering a couple of sellers noted a deal or two were done as high as $360/gt for the grade.
  • The Davis Index for US HMS 1&2 (80:20) exports to Turkey are flat since last week.
  • In Boston, the weekly Davis Index for export yard #1 HMS moved up by $12/gt and rose by $11/gt for P&S 5ft delivered Boston dock. Shredder feed increased by $6/gt delivered Boston export yard. 
  • The weekly Davis Index for export yard buying prices in New York increased by $12/gt and $13/gt delivered for #1 HMS and P&S 5ft, respectively. Shredder feed declined by $6/gt delivered. 
  • In Philadelphia, the Davis Index for export yard collection prices of #1 HMS and P&S 5ft moved up by $8/gt and $9/gt delivered, respectively, while shredder feed fell by $5/gt delivered. 
  • In Houston, the weekly Davis Indexes moved up by $10/gt, $7/gt, and $8/gt delivered for #1 HMS, P&S 5ft, and shredder feed, respectively.
  • US West Coast export yard prices varied by region on Tuesday as collection prices at docks adjusted to regional dynamics.
  • The Davis Index for US-origin HMS 1&2 (80:20) is trending flat and was up $0.50/mt cfr Turkey against the prior week. 
  • Collection prices are rising in the EU and UK. In the US, market participants expect strong export demand on bulk to continue while noting that Turkey prices may have hit a temporary high as Turkish mills lowered bids and limited firm bidding for US scrap on Tuesday. 
  • Buyers in Bangladesh are silent while Indian importers have reduced inquiries amid regional lockdowns due to rising COVID-19 cases. Domestic steel trade is slowing down in various buying countries and softening the demand for domestic scrap. In Pakistan, finished steel prices may drop on weaker demand and while domestic buying prices in Bangladesh have been flat, they could decrease within the week. 
  • Japanese export scrap offers remain firm, especially after the recent higher Kanto scrap bids, but buyers are cautious on the net demand and price effect from Asian countries. South Korea has maintained domestic prices flat but may trend up as Taiwan and Vietnam domestic scrap prices increased this week. 
  • The Portland weekly Davis Indexes for export yard scrap decreased by $24/gt for #1 HMS, P&S 5ft fell by $11/gt delivered, and shredder feed adjusted down by $5/gt delivered. 
  • Domestic mills in Portland decreased their scrap buying prices by $20-25/gt in April compared to March settled prices as some mills that encountered 2-3 weeks’ outages the previous month were carrying over sufficient scrap inventories. While some market participants reported maintaining the higher scrap buying prices from the previous week, others received less at regional docks. 
  • In Los Angeles, dock prices moved higher on buying activity at the docks with #1 HMS, P&S 5ft and shredder feed rising by $30/gt, $21/gt, and $16/gt delivered, respectively. Prices were expected to firm up in April with the uptrend in export scrap both in bulk and containers. 
  • San Francisco’s export yard indexes held unchanged for #1 HMS and P&S 5ft. Shredder feed rose by $2/gt delivered.

 

US containers

  • US containerized ferrous scrap prices increased for the third successive week in some markets on Thursday as low availability of containers and high freight costs continued to impact the markets on both coasts. 
  • Higher-priced transactions were reported earlier in the week, but buyers began resisting those price levels by Thursday. Still, several market participants on the East Coast noted good demand levels and the possibility of continued increases over the next few weeks as May approaches. 
  • On the West Coast, opinions were mixed with some feeling that prices may have hit a temporary high point, while others expected a further increase. Japanese export scrap offers remained strong and Asian buyers are pursuing US-sourced scrap inventories. 
  • In New York, the weekly Davis Indexes for #1 busheling declined by $6/mt fas, while HMS 1&2 (80:20) and shredded trended unchanged. Deals fluctuated with some prices increasing by $5/mt while others dropped, which resulted in a net unchanged status. P&S 5ft rose by $1/mt and machine turnings increased by $3/mt fas. 
  • The weekly Los Angeles containerized scrap indexes climbed by $7-12/mt after gains of about 20-30/mt in the past two weeks. The index for #1 busheling rose by $7/mt, HMS 1&2 (80:20) climbed by $8/mt, P&S 5ft increased by $10/mt, and shredded scrap climbed by $12/mt. Some buying mills in Taiwan are reducing cfr price levels and are placing downward pressure on recent fas price gains. 
  • In San Francisco, the weekly indexes gained by $10/mt over last week though #1 busheling remained unchanged as buyers reduced interest in higher grades. HMS 1&2 (80:20), P&S 5ft, and shredded rose by $7/mt, $6/mt, and $10/mt, respectively. 
  • The Seattle Davis Indexes remained mostly rangebound. The #1 busheling index slipped by $2/mt while HMS 1&2 (80:20) was unchanged. P&S 5ft and shredded climbed by $1/mt each.

 

Mexico

  • Mexico’s domestic ferrous scrap prices increased on strong demand in the Bajío and the Central regions on Friday.
  • Prices in Central and Bajío Mexico rose by about MXN200/mt ($10.03/mt) over the past week and are expected to increase in the short term with #1 busheling prices expected to remain firm until August in Bajío. Bids for this prime grade are being heard in the range of MXN10,600/mt-MXN11,000/mt in Veracruz.
  • Mexican recyclers in the North are considering importing machine shop turnings from the US in May and #1 busheling prices in this region could continue to rise until June.
  • In Central Mexico, the weekly Davis Indexes for #1 HMS, P&S 5ft, and shredded rose by MXN250/mt, respectively. Machine shop turnings rose by MXN200/mt delivered Mexico consumer and #1 busheling climbed by MXN300/mt delivered.
  • The weekly Davis Indexes in Bajío for #1 HMS fell by MXN100/mt, shredded increased by MXN400/mt and machine shop turnings rose by MXN50/mt delivered. P&S 5ft rose by MXN250/mt and #1 busheling climbed by MXN200/mt delivered Mexico consumer.
  • In North Mexico, the weekly Davis Indexes for both shredded and #1 busheling fell by MXN8/mt delivered. The index for #1 HMS rose by MXN58/mt, P&S 5ft increased by MXN170/mt, and machine shop turnings rose by MXN166/mt. ($1=MXN19.92)

 

Japan  

  • Japanese exporters raised ferrous scrap offers post-Kansai tender on 13 April. The winning bid was JPY42,960/mt ($394.38/mt) fas for 5,000 mt #2 HMS.
  • Post-Kansai tender, Tokyo Steel raised ferrous scrap bids by JPY1,000-1,500/mt ($9.17-13.7/mt) for the second time this week. The steelmaker raised ferrous scrap purchase prices by JPY1,500/mt ($13.8/mt) delivered Tahara, Okayama and Takamatsu, effective April 15, while up JPY1,000/mt for Kyushu and Utsunomiya plant. Tokyo steel’s bids for #2 HMS are at JPY44,000/mt ($404/mt) delivered Tahara, JPY43,000/mt delivered Okayama, JPY43,000/mt delivered Kyushu, JPY42,000/mt delivered Utsunomiya and JPY42,000/mt delivered Takamatsu.
  • The weekly index for #2 HMS rose JPY1,292/mt ($11.9/mt) fob with trades at JPY43,000/mt fob. On a fas basis, the index rose by JPY1,417/mt post-Kansai tender.
  • Increased inquiries from China and other Asian countries could lift offers further, expect traders. The index for P&S 5ft (small bulk) China port rose $2/mt cfr from the prior week on rising offers. Offers for HS or P&S rose by $5/mt cfr China, while bids remained at $490/mt cfr on Wednesday.
  • Offers for Japanese #1 busheling (Shindachi) rose by over JPY1,000-1,500/mt due to a shortage of scrap and strong global cues. Freight charges have remained high resulting in increased landing cost for overseas buyers. The weekly index for the grade rose by JPY1,375/mt fob Japan, while the index rose by JPY750/mt fas. Trades for Shindachi heard at JPY52,000/mt cfr South Korea this week, while offers rose to JPY49,000/mt fob.
  • With Turkish mills halting purchases due to Ramadan holidays, the index for HMS 1&2 (80:20), Tuesday, fell by $8/mt cfr Turkey on Thursday from April 9. South Asian buyers are waiting for Turkish purchases to resume next week to gauge price direction.
  • The weekly Davis indices for HS and shredded, Wednesday rose JPY1,841/mt fas and JPY1,333/mt fas, respectively, amid limited trades.
  • Offers for HMS 1&2 (50:50), Wednesday, rose by $5-10/mt cfr from the prior week with the index for the grade up $17/mt cfr from the prior week on global cues. 
  • The index for Japanese HMS 1&2 (50:50) rose $15/mt cfr Taiwan. Traders said prices are supported by rising Japanese scrap offers and Chinese steel and iron ore futures. Most offers rose $10/mt from the prior week. ($1=JPY109)

 

South Korea  

  • Limited containerised bookings heard from South Korean mills this week due to a shortage of containers at the USWC and a preference for bulk cargoes. Leading steelmakers actively bought Japanese scrap this week. Trades for #1 busheling (Shindachi) heard at JPY52,000/mt ($478/mt) cfr and for #2 HMS at JPY47,000/mt cfr. Traders said mills could raise bids for Japanese scrap in line with higher bids for Kansai tender. 
  • Thursday Hyundai announced bids for Japanese scrap with #2 HMS at JPY43,000/mt fob, shredded JPY47,000/mt fob, HS JPY48,000/mt fob and #1 Busheling (Shindachi) JPY49,000/mt fob.
  • Importers expect freight rates might go up further due to container shortages and vessel congestion at many ports. While US-based exporters are worried about supplying containerised scrap on schedule due to a shortage of empty containers. 
  • The Davis Index for containerized HMS 1&2 (80:20), Wednesday, rose by $8/mt cfr South Korea from the prior week with few deals heard. Bids rose by $10-15/mt cfr South Korea, with offers rose to $430-435/mt cfr. Traders indicated that offers for Taiwan and South Korea are similar due to supply constraints and higher freight rates. 
  • The Davis Indexes for P&S 5ft and #1 HMS, Wednesday, rose by $7/mt and $9/mt from prior Wednesday cfr South Korea, respectively. The index for shredded rose by $6/mt cfr from the prior week.
  • South Korean mills kept domestic scrap bids unchanged on Tuesday. Major steel mills were negotiating for bulk deals from Australia, Russia, and the US instead of containerised to avoid delays. The weekly Davis Index for domestic Heavy A settled unchanged delivered Incheon and Pohang, respectively. Mills are expected to raise bids next week on low inventory, said traders.
  • The weekly Davis Index for domestic Light A settled unchanged delivered Pohang mill. With the rise in enquiries from Chinese mills and higher offers post-Kansai tender, South Korean mills have turned cautious and are closely tracking purchases by other Asian buyers. ($1=KRW1,115)

 

Taiwan  

  • Taiwanese mills raised bids amid rising global scrap prices. The Davis Index for containerized US-origin HMS 1&2 (80:20), Friday, was unchanged from Thursday, while up $9/mt from prior Friday (April 9). Offers rose $10-15/mt cfr. Few deals concluded at $430-432/mt cfr as bids chased offers that kept rising on tight supply. 
  • Mills are cautious and tracking Japanese exports post-Kanto and Kansai tenders. Offers for HMS 1&2 (50:50) rose $5/mt to $460/mt cfr on Wednesday.
  • The daily Davis Index for US-origin containerized HMS 1&2 (80:20), Thursday, settled unchanged at $432/mt cfr Taiwan, with limited trades heard for containerized scrap. Offers remained high at $435-440/mt cfr but bids lagged. The index rose by $8/mt from the prior Thursday (April 8).
  • Market participants indicated that offers might rise next week due to global scrap shortage and rising demand from other Asian countries. Mills raised domestic scrap bids to avoid shortfall. Importers are closely watching South Korean and Vietnamese bulk scrap purchase from Japan to ascertain price trend. In bulk, a deep-sea trade was heard at $465-466/mt cfr in the last 10 days, offers rose to $470-475/mt cfr.
  • Offers for Japanese HMS 1&2 (50:50) rose $10/mt cfr Taiwan while bids were at $450/mt cfr. Traders said most mills are yet to raise bid and are cautious of rising scrap prices in the international markets. 
  • On a weekly basis, the Davis Indexes for containerized #1 HMS, shredded and P&S 5ft rose by $9/mt, $3/mt, $4/mt cfr, respectively, from April 8. The index for #1 busheling remained flat this week amid lower demand for higher grade scrap, said traders. 
  • With Turkish buyers away on Ramadan holidays, Taiwanese mills are cautiously checking Chinese, South Korean and Vietnamese deep-sea purchases to gauge price trend post-Kansai tender. 
  • The weekly Davis Indexes for domestic HMS 1&2 (80:20) rose by TWD500/mt($17/mt) delivered South Taiwan and North Taiwan mills, respectively. Feng Hsin raised domestic scrap bids by TWD500/mt on Monday and raised rebar offers by TWD700/mt ex-works.
  • On Tuesday, few offers for HMS 1&2 (70:30) from Central America in FEU moved up $10-20/mt cfr from the prior week. Taiwanese importers indicated that domestic scrap is still cheaper than imports, but supply remains tight. ($1=TWD28)

 

China

  • In China, Jiangsu Shagang Group lifted prices of long and flat finished steel products by CNY100-300/mt ($15-46/mt) for early April deliveries amid stable raw material prices. 
  • Japanese HS trade in small bulk heard at $500/mt cfr China this week, while offers rose to $510/mt cfr.
  • Iron ore Fe 62pc prices rose $5/mt cfr to $173/mt cfr Qingdao on Monday from the prior week. With bullish steel, coal and iron ore futures and stricter production curbs, market participants expect good demand for ferrous scrap in the coming days. Many traders from China are actively inquiring and negotiating with suppliers amid an anticipated rise in demand for imported ferrous scrap. 
  • Mills also focused on importing billets to fulfil domestic and international finished steel demand. Domestic billet prices dropped this week due to volatile Chinese futures and curbs on finished steel exports. Billet price fell by CNY170/mt to CNY4,890/mt($746.7/mt) ex-mill from the prior week.
  • The weekly Davis Index for the HMS 1&2 (80:20) rose by CNY35/mt delivered mill from the prior week. Bids for imported scrap rose following the limited availability of domestic scrap. ($1=CNY6.5)

 

Vietnam 

  • Vietnamese mills lowered containerised scrap purchases and preferred to buy bulk from Japan and Hong Kong amid a shortage of empty shipping containers and rising freight. Asian bulk markets rose this week on strong demand from Vietnam with heavy melt offers to Vietnam at $465-470/mt cfr and bids at $460-465/mt cfr.
  • In the containers market, the weekly index for US-origin HMS 1&2 (80:20), Thursday, rose $9/mt cfr Vietnam from the prior week. Bids rose by $5/mt cfr while offers rose $5-10/mt cfr in TEU containers, said traders citing higher freight charges. Limited trades were heard from USWC at $440/mt cfr this week.
  • The Davis Index for containerized #1 HMS rose by $9/mt to $448/mt cfr from the prior week, while shredded, P&S 5ft and #1 busheling 5ft indexes remained unchanged from the prior week amid strong demand for short transit scrap from Hong Kong and Singapore. 
  • Robust steel demand in China boosted higher exports of billets and other semi-finished products from Vietnam and led to an increase in production by major domestic steelmakers. In March, China was the top destination for Vietnamese exporters with iron and steel exports to China nearly tripling from a year ago. Exports were up by 192pc at 270,790mt from the prior March and up by 177pc from February. Higher steel prices in China’s domestic market and shorter transit allowed importers of steel to gain arbitrage opportunity. 
  • Billet prices from Asian suppliers have increased by $25-30 in a month as domestic billet prices in China rose to a 12.5 year high amid production cuts. A recent deal for billets concluded at $660/mt cfr China. 
  • In April, HRC offers to Vietnam spiked in line with higher HRC prices in the international market. Last week, a deal for Indian HRC was heard at $920-930 cfr Vietnam with offers expected to rise further.
  • Small bulk offers for Japanese #2 HMS rose $10/mt to $460-465/mt cfr Vietnam but no deals heard at higher prices. 
  • The weekly Davis Index for domestic HMS 1&2 (80:20) rose by VND180,500/mt ($7.8/mt) delivered South Vietnam inclusive of taxes. Some traders expect bids to rise further on improved finished steel demand and higher raw material prices globally. 
  • Bulk HMS 1&2 (80:20) offers from the US west coast rose $5/mt from the week prior. Most mills opted to bid for bulk over containerised due to a shortage of empty boxes at supplier destinations. ($1=VND23,095)

 

Indonesia

  • The Davis Index for HMS 1&2 (80:20) settled flat cfr Jakarta with mills buying limited scrap and preferring short transit origins for immediate requirement during Ramadan.
  • Indonesian mills have been slow in new bookings. Trades for P&S 5ft from Singapore heard at $460/mt cfr and HMS 1&2 (80:20) from New Zealand at $440/mt cfr. Bids chased limited offers this week. Offers for Australian HMS 1&2 (80:20) at $445-450/mt cfr on Thursday.
  • Market participants expect trade to remain slow next week due to Ramadan holidays but offers for containerised could rise on higher freight rates and container shortage.
  • The weekly index for P&S 5ft fell by $1/mt cfr from the prior week due to limited offers and bids for US-origin scrap. The Davis Index for shredded remained unchanged cfr Jakarta on Thursday with mills resisting higher offers this week. 
  • Deals for domestic busheling heard at $470/mt delivered Jakarta mill amid rising demand for domestic scrap for immediate melt requirement. Imports from Malaysia remained paused following the announcement of a 15pc export duty on ferrous scrap.

 

Thailand

  • The weekly Davis Index for domestic HMS 1&2 (80:20) rose by THB500/mt ($15.8/mt) delivered Rayong mill inclusive of taxes. Deals heard at THB13,300-13,500/mt delivered mill. Mills increased the purchase of domestic scrap amid rising ocean freight and a halt of exports from Malaysia. 
  • Many steel mills avoided imported scrap bookings due to Ramadan holidays and preferred domestic material for immediate melt requirements. Market participants added that due to the shortage of domestic scrap and anticipation of higher freight in May, mills could opt for imports to restock inventory.
  • Deals for domestic P&S 5ft heard above THB13,800-14,000/mt on Tuesday. Offers for billets heard at $660/mt cfr China unchanged from the prior week but no deals heard this week amid slow steel demand. ($1=THB31.5)

 

Malaysia 

  • The weekly indexes for HMS 1&2 (80:20) settled unchanged delivered western and eastern mills inclusive of taxes. Offers for domestic P&S 5ft heard at MYR1,850-1,880/mt delivered mill on Tuesday. Most Malaysian mills have halted purchases ahead of Ramadan and are expected to start trading next week.
  • Malaysia’s 15pc duty on exports of ferrous scrap has raised the land cost of scrap for buyers in import destinations. But this could lower the country’s dependency on imports. Some traders expect higher demand for domestic scrap in the coming weeks which could spike bids. ($1=MYR4)

 

India 

  • Imported scrap offers to India for higher grades remained firm on tight supply of domestic scrap. 
  • India is dealing with the second wave of COVID-19 infections. Most states have announced movement restrictions akin to a complete lockdown. Manufacturing, construction, and logistics activities are allowed but under strict COVID-19 SOPs. A mass exodus of migrant labourers has also hurt some businesses. 
  • A high number of critically ill COVID-19 cases has stressed India’s healthcare system, while a shortage of vaccine supply has slowed the inoculation drive, dampening market sentiment. This has prompted secondary mills to adopt a wait and watch stance to gain more clarity on the domestic situation. 
  • UAE-origin HMS climbed up by $5-10/mt as yard have limited operating hours with the start of Ramadan impacting scrap loading rates. 
  • Stable offers pushed the Davis Index for containerized shredded cfr Nhava Sheva, up $5/mt from Thursday despite the absence of bids due to domestic uncertainty. Index inched up by $2.5/mt from prior Friday. 
  • Indian mills opted for HMS scrap from short transit destinations including the UAE, Africa and Latin America, pushing offers up on tight supply. 
  • The daily Davis Index for UAE-origin HMS 1&2 (80:20), Friday, rose to $433/cfr Nhava Sheva, up by $3/mt. Dubai-origin #1 HMS was in demand as offers surged to $440-445/mt cfr Nhava Sheva. 
  • The index for US-origin HMS 1&2 (80:20) Friday cfr Nhava Sheva rose $3.75/mt from a day prior. Offers surged as improved demand from Taiwan and Vietnam. 
  • Offers for turning scrap rose $5-10/mt from a week ago. Mills stayed away from purchases of containerized P&S and #1 busheling. The indexes for P&S and #1 busheling rose $3/mt from last week.
  • Indian primary mills focused on securing HRC and billet export orders, prices for which are expected to rise in the coming days on strong global cues. ($1=Rs74.37)

 

India domestic

  • In Mandi Gobindgarh and Mumbai, the index for HMS 1&2 (80:20) rose by Rs1,000/mt and Rs500/mt delivered mill from last Friday. 
  • Mills preferred competitively priced domestic scrap over imported. They are struggling to balance purchases as a shortage of containers and higher freight rates have increased the landed cost of imported scrap. 
  • Finished steel demand remains under pressure due to strict COVID-19-related restrictions imposed by several state governments.
  • A shortage of oxygen cylinders resulted in the closure of some recycling yards, which in turn lifted domestic scrap and ship plates prices.
  • In Jalna, a steelmaking hub in the state of Maharashtra, over 40pc of steel production is impacted due to a diversion of industrial oxygen supply for medical use. 
  • In Mumbai, one of the major scrap consumer markets, rebar prices surged by Rs1,000-1,200/mt in a day to Rs50,000/mt ex-works. But a lockdown in the state has hampered construction work hurting sales and thereby scrap consumption.

 

Pakistan  

  • Pakistani ferrous scrap importers are mostly away as steel demand weakens with the start of Ramadan. Limited operating hours, non-availability of workers, strict COVID-19-related restrictions and fewer offers limited scrap trading over this week. 
  • The Davis Index for containerized shredded, Friday, settled cfr Port Qasim up $5.1/mt from Thursday. The index rose on Friday after falling mid-week to settled down by $1.79/mt from the prior week. 
  • The daily index for US-origin HMS 1&2 (80:20), Friday, rose by $3.8/mt cfr Port Qasim. Most mills were inclined to purchase UAE-origin HMS for a shorter transit period over the UK/EU and US-origins.
  • Offers for the UAE-origin material have gone up following tight supply. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled cfr Port Qasim up $4/mt. Offers for mixed #1 HMS and P&S from UAE rose $5-10/mt cfr Qasim, depending on quality.
  • The Davis indexes for P&S 5ft and #1 busheling were down $2/mt and unchanged, respectively, from the prior Friday. High grade supply remained tight widening its gap against medium grade materials. 
  • On Friday, Bala billets traded ex-works Lahore, up by PKR1,000/mt from the prior week. On a weekly basis, the index for domestic Bala billet rebounded by PKR1,250/mt. The Davis Index for G-60 billet was up PKR750/mt ex-works Punjab.
  • Long steelmakers in Punjab and Karachi kept offers firm while many small-scale steelmakers slipped into annual maintenance on low steel demand. 
  • The weekly Davis Index for rebar dropped PKR500/mt ex-works Karachi, while in Punjab, the index decreased by PKR250/mt.
  • The weekly index for Art Q toke scrap equivalent to a mix of HMS and P&S, Friday, settled ex-yards Lahore up PKR1,000/mt. Index for Pure Q toke scrap equivalent to shredded too rose PKR1,000/mt. 
  • In Gadani, demolition work slowed with the start of Ramadan as most workers returned to their hometowns. ($1=PKR153.11)

 

Bangladesh

  • Imported ferrous scrap trades in Bangladesh have remained paused amid the ongoing lockdown to control the second wave of COVID-19 infections. 
  • Labourers have also left for their hometowns with the start of the holy month of Ramadan on April 14. No major movement in containers is expected before the end of April. 
  • Few small-scale producers might shut factories to avoid losses as steel demand is expected to be under pressure till Eid holidays. Monsoon season will begin soon after Eid, a time when construction activities take a backseat, so demand is expected to be tepid.
  • The Davis Index for containerized shredded, Friday, settled at cfr Chattogram up $5/mt from the prior week. UK-origin containerized shredded offer remain unchanged, but buyers stayed away. 
  • Indian Sponge iron was offered at equivalent of $435-440/mt delivered to Narayanganj on barge, up $10-15/mt from the prior week. 
  • The daily index for HMS 1&2 (80:20) from Latin America rebounded by $4/mt on Friday. Most Latin American yards continued to sell in their domestic market. This week some yards shifted their focus to the Indian market as bids from Bangladesh turned unattractive.
  • Trades for premium scrap grades like P&S and Busheling were thin on limited offers. The Davis indexes for P&S and #1 busheling, Friday, rose $5/mt and $3/mt, respectively, from the prior week.
  • Increased demand for domestic scrap and bullish global cues pushed the weekly index for ship scrap equivalent to P&S up by BDT1,000/mt ex-yards. Despite slowing demolition rates, offers for scrapped ship surpassed the $500/ldt cnf mark. 
  • The weekly index for billet rose BDT500/mt ex-works from the prior Friday. Southeast Asian billet offers remained rangebound amid a drop in Chinese prices. 
  • Large steelmakers including BSRM, AKS, GPH, and KSRM held their asking rates for rebar considerably higher than their smaller peers. The index for rebar from medium-scale mills in Dhaka rose BDT250/mt ex-works. Most end-users are opting for local rebar made through manually control and offered at almost BDT10,000/mt lower than automatic rebar. ($1=BDT84.3)

 

Metallics

 

US/CIS

  • The weekly Davis Index for basic pig iron (BPI) inched up by $3/mt cfr New Orleans port on Friday on rising offers and expectations of renewed activity. The weekly Davis Index for CIS basic pig iron increased by $8/mt fob Black Sea on Friday amid new transactions.
  • The latest deals in the past week from the CIS or Brazil are in the range of $565-575/mt cfr Nola but some US buyers are considering offer levels near $580/mt cfr Nola for their next purchase. 
  • Activity is slow as the April trade wrapped up recently, but BPI deals are expected to soon range between $580-590/mt cfr Nola with some offers heard near $600/mt cfr Nola or higher on rising steel prices and upward momentum for pig iron or other scrap material.
  • BPI Offers specific to imports in the US range from $570-590/mt cfr Nola, same as last week, on tight BPI supply. The limited availability of prime material in the US is also lifting demand for the alternative grade. 
  • Exporters remain bullish and have raised offers to $580-600/mt cfr depending on destination. A large Russian supplier continued asking $620/mt fob, being sold out until the second half of June. 
  • CIS pig iron exporters sold several small cargoes and achieved higher prices amid limited availability of the material. A Ukrainian supplier was heard to have closed a deal with a trader at around $545/mt fob Black Sea for 10,000mt of pig iron.
  • Nodular pig iron (NPI) imports remained unchanged at Nola. The material is in tight supply and current offers involve earliest shipment in July. Offers heard for NPI this week remain between $650-680/mt cfr Nola with bid level just under the range.
  • The weekly Davis Index for US hot briquetted iron (HBI) imports is flat at Nola with no new offers or bids heard for the material. The price estimate is based on current market prices for similar grades, price points sellers are willing to trade at and current interest by consumers.
  • In Italy, the weekly Davis Index for CIS pig iron rose by $17/mt cfr on Friday amid improving demand. A Ukrainian exporter sold two cargoes of the material (5,000mt each) at around $585/mt cfr to different distributors during the week.

 

India

  • The Davis indexes for sponge iron rose by Rs1,350/mt del Mandi Gobindgarh and Rs900/mt del Mumbai mill, week-on-week. Sponge producers raise offers after India’s leading miner National Mineral Development Corporation (NMDC) hiked iron ore prices by $14.5/mt on April 14. The miner hiked iron ore prices twice in April with the earlier revised on April 3. NMDC’s iron ore lumps are priced at Rs6,950/mt ($92.6/mt) and fines at Rs5,060/mt ($67.4/mt), effective April 14.
  • The decline in production amid a shortage of oxygen also lifted price. But demand for mills remains under pressure because of the ongoing lockdown in the state of Chhattisgarh.

India semi-finished and finished steel

  • Finished and semi-finished steel prices in India recovered on Thursday after National Mineral Development Corporation (NMDC) hiked iron ore prices by $14.5/mt.
  • The index for billet in Raipur surged by Rs2,500/mt ($33.57/mt) ex-works in a week as input costs increased as offers for pellet sponge iron increased. Declined production amid oxygen cylinder shortage also gave prices a lift. But end-user demand remains under pressure because of the ongoing lockdown in the state of Chhattisgarh.
  • The index for rebar was up by Rs3,700/mt ex-works Raipur in a week following a rise in semi-finished steel prices.
  • In Mumbai, the index for billet rose by Rs3,000/mt ex-works. The index for rebar was up by Rs2,100/mt ex-works. The government of Maharashtra has tightened restrictions until April 30. According to new rules, construction activities can continue only if builders can arrange to house labourers at the development site, pressuring demand. Still, steel prices rose on production cuts and a rise in scrap and sponge iron prices. 
  • In Mandi Gobindgarh, the index for ingot surged by Rs1,700/mt in a week. ($1=Rs74.45) 

 

Shipbreaking 

  • Ship scrap prices spiked by $33-36/mt this week amid a shortage of oxygen supply. Operations at several yards have either slowed or halted due to a diversion of industrial oxygen used for cutting and demolition work to hospitals caring for COVID-19 patients. 
  • The indexes for HMS attachments and Melting, Friday, rose by Rs2,700/mt from Monday.
  • The index for 14Ani rose by Rs2,300/mt ex-Alang amid firm demand from re-rolling mills in Gujarat. Demand for ship plates also increased and the index for 2kg plates rose by Rs2,600/mt ex-Alang this week. 
  • Several shipbreakers are on the verge of shutting down their production if the oxygen supply does not normalize soon. ($1=74.38)

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