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Ferrous market update: April 26-30

Ferrous Market Update 04/30/2021

 

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) jumped by $13.54/mt on Friday after a booking from Europe fueled the bullish market sentiment.
  • An Iskenderun-based mill purchased 20,000mt of HMS 1&2 (80:20), 8,000mt of shredded scrap, 10,000mt of bonus material, and 2,000mt of busheling from a Belgian supplier at an average price of $453/mt cfr. The cargo is due to be shipped in June.
  • Scrap demand increased amid limited offers towards the end of the week. A few US and Baltic exporters offered HMS 1&2 (80:20) at $455/mt cfr, but the rest preferred to wait for higher levels as purchases are expected to continue next week.
  • Turkish mills increased rebar offers to $680/mt fob actual weight in an active market and closed some sales to the Middle East at around $670/mt fob. Mills refused bids that were heard at $650/mt fob actual weight from Asian buyers.
  • Spot prices for rebar in the Turkish domestic market rose by TRY110-130/mt ($13-16/mt) on Friday as demand strengthened.
  • New transactions were fixed in the domestic Turkish billet market at $615-625/mt ex-works in the Izmir and Iskenderun regions. ($1=TRY8.27)

 

Turkey domestic

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey fell by TRY34/mt ($4/mt) delivered on Monday. The dip followed a rise in imported scrap prices.
  • Purchase prices for shipbreaking scrap in the Izmir region were flat for the fourth successive week. ($1=TRY8.29)

 

CIS

  • The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap increased by $10/mt in the Baltic Sea and by $11/mt in the Black Sea on Monday amid further bookings.
  • Trading continued in the Russian exported ferrous scrap market. Thus, a supplier from St Petersburg sold HMS 1&2 (80:20) at $426/mt cfr, shredded scrap, and bonus material at $436/mt cfr to a Turkish mill last week, while the previous transaction was fixed at $420-425/mt cfr for HMS 1&2 (80:20).
  • A new deal was also fixed from Rostov-on-Don to Turkey at $407/mt cfr for A3 scrap versus $405/mt cfr a week ago.
  • Turkish importers accepted only a slight increase in prices, however, lower freight rates worked in sellers’ favor.
  • The weekly Davis Indexes for A3 scrap remained flat in St Petersburg and Rostov-on-Don docks on Monday. Some exporters claimed that collection slowed down last week.

 

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region increased by €12/mt ($14.50/mt) on Tuesday following new sales in the export market.
  • Ferrous scrap exporters from the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) raised collection prices amid higher prices in deals with Turkish mills. Last week, a Belgian supplier sold 22,500mt of HMS 1&2 (80:20) and 12,500mt of HMS 1, P&S 5ft at an average price of $429/mt cfr Turkey, as reported by Davis Index earlier.
  • This week, European exporters increased offers to $430-435/mt cfr Turkey for HMS 1&2 (80:20) and $425-430/mt cfr for HMS 1&2 (75:25). (€1=$1.21)

 

UK dockside

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices climbed by £3/mt ($4/mt) delivered dockside, respectively, on Tuesday.
  • UK dockside purchase prices climbed cautiously higher over the past week, with some bulk suppliers building stockpiles ahead of an anticipated flurry in Turkish bookings.
  • Sentiment among UK-based bulk exporters appeared buoyant about the next round of negotiations, although there was some unease and uncertainty on when they would eventuate.
  • Concerns were mainly centred around the capacity to build and store ferrous scrap inventories until Turkish buyers returned to the market en masse.
  • Building too fast and too soon would result in undermining negotiations, while too slow and too late would frustrate merchants and leave bulk exporters short of material.
  • Davis Index’ Turkish HMS 1&2 (80:20) ferrous scrap import index had climbed $13/mt higher over the past week on Apr 27, giving some exporters optimism.
  • The weekly indices for north and south UK OA (Plate & Structural) and UK 5A/5C (frag feed) climbed by £5/mt delivered dockside, respectively. (£1=$1.39)

 

Spain 

  • Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices edged €4/mt ($5/mt) higher on Friday.
  • Another more recent sale of heavy melt to Spain was heard at €330/mt cfr northern Spain earlier in the week, while offer prices have now shot up to around €340/mt on the same basis.
  • In the meantime, ferrous scrap benchmarks on major seaborne trade routes have extended recent hikes over the past week, climbing another $8/mt.
  • UK-based bulk exporters have also further raised dockside prices and, as a result, offers to Spain, in anticipation of an impending flurry of Turkish purchasing activity.
  • Spanish buyers have curbed the recent upside potential in import prices by leaning on supplies of domestically sourced material.
  • UK shortsea ferrous scrap exporters have enjoyed more favourable rates by selling coasters on to transhippers in Belgium and the Netherlands.
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices increased by €12/mt fob, respectively, during the week. (€1 = $1.21)

 

US dockside

  • US East Coast and Houston dock collection prices for ferrous scrap were rangebound with some upticks compared to last week. Price points at the docks have trended sideways with small movements throughout April.
  • Export activity has been limited over the past month. The Davis Index for US HMS 1&2 (80:20) exports to Turkey were up by $12.48/mt since last week on Tuesday compared to Apr 20.
  • Scrap supply is healthy this week, with bulk exporters receiving solid material flows into yards while looking for further price cues. East Coast dock sales for #1 HMS remained at $335-350/gt on Tuesday with modification based on dock location and base price from last sales.
  • In Boston, the weekly Davis Index for export yard #1 HMS inched up by $1/gt and were flat for P&S 5ft. Shredder feed ticked up by $2/gt delivered Boston export yard.
  • The weekly Davis Index for export yard buying prices in New York moved up by $2/gt for #1 HMS, P&S 5ft and shredder feed delivered dock, respectively.
  • In Philadelphia, the index for export yard collection prices of #1 HMS rose by $2/gt delivered and P&S 5ft inched up $1/gt delivered Philadelphia dock and shredder feed was flat.
  • In Houston, the index climbed by $2/gt for #1 HMS and P&S 5ft rose by $2/gt delivered Houston dock. Shredder feed fell by the same amount delivered. Market participants in this region await May trading for further price indications.
  • Like the East Coast and the Gulf, the weekly US West Coast export yard ferrous scrap prices trended sideways on Tuesday.
  • West Coast sellers expect strong sales to Asia and the Middle East to continue through the summer and dockside prices in the EU and UK began to rise on Tuesday.
  • Offers from the US and Europe to Turkish mills continue firm, though Turkish domestic scrap ticked down over the past week. The slight domestic price erosion is not expected to radically affect import prices unless further drops become evident.
  • Domestic scrap in India began to increase on moderate demand and tight supply despite some market uncertainty on a resurgence of COVID-19 cases. Market participants are concerned about a prospective nationwide lockdown but point to vaccination efforts and the potential better administration of rules given the learning curve encountered in 2020.
  • Stronger confidence in India could easily increase construction activity and mill demand for scrap but buyers are operating cautiously for now as Indian mills have reduced production in some cases by 10-30pc.
  • Bangladesh buyers expect additional steel buying activity as the government eases the COVID-19 lockdown at the end of April. Both Bangladeshi and Pakistani mills are expected to increase inquiries on mill needs. Additionally, finished steel prices are either trending flat or beginning to rise.
  • South Korean and Vietnamese mills may increase steel production to meet Chinese demand for imported semi-finished and finished steel.
  • Japan’s domestic scrap prices have risen in the past few weeks but were trending flat on Tuesday. Still, export prices may rise on tight domestic scrap supplies and potential increases in mill demand on stronger domestic and export sales.
  • The weekly Davis Index in Portland for export yard scrap was rangebound with #1 HMS climbing by $2/gt delivered, while P&S 5ft and shredder feed remained unchanged.
  • US domestic mills are expected to trade sideways in May against April settled prices. Finished steel demand is strong, steel inventories are limited, and scrap inflows are considered adequate without extensive high feedstock increases despite strong scrap buying prices.
  • With COVID-19 changes globally and strong scrap demand, the usual dip in prices on seasonal effect in May is not expected. However, mills may apply downward pressure on prices, but with strong export demand and tight scrap supply globally, most participants expect a mostly flat market.
  • In Los Angeles, the indexes trended mostly unchanged this week with #1 HMS rising by $1/gt delivered, and P&S 5ft and shredded remaining unchanged.
  • San Francisco’s export yard indexes were also rangebound with slight increases. The Davis Index for #1 HMS rose by $1/gt delivered. P&S 5ft climbed by $3/gt delivered and shredder feed remained unchanged.

 

US containers

  • US containerized ferrous scrap prices increased on the East Coast but were mostly rangebound on the West Coast on Thursday.
  • Active buyer inquiries and higher seller offers defined the market activity on the East Coast this week. Indian, Bangladeshi, and Pakistani buyers were cautiously active, though some withdrew from the market pending domestic assessments against rising COVID-19 cases. Some suppliers also slowed down their bookings preferring to wait for more cues from the US domestic ferrous trading week that will start next week.
  • In May, the US domestic ferrous market is expected to trade from sideways to an additional $10-20/gt against April settled prices, possibly even higher. There is some optimism on the appetite for scrap by US mills in a period of ever-higher finished steel prices despite concerns over seasonality and mills trying to push down prices if insufficient export vessels are booked.
  • Turkish import scrap prices have increased globally, and the latest deals are supporting positive expectations from ferrous exporters.
  • Japanese export scrap offers increased over the past week with support from domestic demand. Steel prices in most scrap buying regions are predominantly flat or rangebound with some expectations of improved demand. Additional buying activity is expected after the lull due to Ramadan for Turkey and other Asian countries as well as a return from the Japanese Golden Week holiday ending on May 5. Strong Japanese export prices will continue to sustain US-origin scrap price levels.
  • In New York, the weekly Davis Indexes rose by $5-10/mt with #1 busheling and machine shop turnings climbing by $9/mt. HMS 1&2 (80:20) and shredded rose by $7/mt as P&S 5ft climbed by $5/mt on strong demand.
  • Containerized indexes on the West Coast were mostly rangebound following limited trades with some buyers succeeding in reducing prices by $5/mt while others were eager for material and began discussing higher bid levels. Still, sellers could not commit to those prices due to containerized booking constraints.
  • Export prices were wide in Los Angeles, with some buyers pushing down while others were seeking scrap inventories and willing to pay more depending on freight and access to containers but overall average levels were flat. Market participants anticipate freight to rise in May and June.
  • The weekly Los Angeles containerized scrap indexes rose by $2-3/mt depending on grade. The index for #1 busheling rose by $3/mt as HMS 1&2 (80:20) remained unchanged, and P&S 5ft and shredded climbed by $2/mt.
  • In San Francisco and Seattle, the weekly indexes were flat across all grades after losing $2-4/mt over the previous week.

 

Mexico

  • Mexico’s domestic ferrous scrap prices increased on strong demand in the Central and Bajío regions and were mixed in the North region on Friday.
  • Prices for secondary and prime grades are expected to increase by $20/mt and 30/mt, respectively, in the US domestic ferrous scrap market in May. These increases are likely to impact prices for those grades in Mexico too.
  • In the US, the dearth of #1 busheling has seen prices for this grade soar, with some US mills replacing it with shredded that is mixed with other scrap to make steel.
  • Scrap prices in Mexico have also risen by MXN100-150/mt ($4.94/mt) in the Central area, after Deacero, Mexico’s largest steelmaker, continued lifting its purchase prices for scrap.
  • In Central Mexico, the weekly Davis Indexes for #1 HMS and P&S 5ft rose by MXN100/mt delivered Mexico consumer. Shredded climbed by MXN150/mt delivered and machine shop turnings increased by MXN50/mt delivered. The index for #1 busheling climbed by MXN300/mt delivered.
  • The weekly Davis Indexes in Bajío for #1 HMS and machine shop turnings climbed by MXN200/mt delivered. For #1 busheling the index climbed by MXN400/mt while P&S 5ft and shredded were flat.
  • In North Mexico, the weekly Davis Indexes for #1 busheling rose by MXN317/mt, shredded increased by MXN158/mt delivered, and P&S 5ft moved up by MXN115/mt. The index for #1 HMS declined by MXN133/mt delivered and machine shop turnings fell by MXN342/mt. ($1=MXN20.22)

 

Japan  

  • Tokyo Steel kept ferrous scrap bids unchanged after a revision on April 21.
  • Japanese ferrous scrap exporters have raised offers but demand in the seaborne markets was lower than the domestic market. Golden week holidays in Japan are expected to slow activities from April 29 to May 5. South Korean mills remained away from imports, banking on surplus domestic availability and on-hand inventory.
  • Amid an emergency imposed to curb COVID-19 infections in four states, steel demand and consumption is expected.
  • Nippon Steel raised HRC prices by JPY10,000-15,000/mt ($92-138/mt) for June shipments on high global iron ore prices amid supply concerns.
  • The weekly index for #2 HMS, Wednesday, rose JPY250/mt fob. Increased inquiries from China and other Asian countries could lift offers further, believe traders. The weekly index for P&S 5ft (small bulk) China port was up by $8/mt.
  • In the small bulk market, the weekly index for Japanese #1 busheling (Shindachi) rose JPY1,125/mt fob Japan.
  • The index for HMS 1&2 (50:50), Wednesday cfr Haiphong, was up $7/mt on limited availability and elevated small bulk freights. ($1=JPY108.2)

 

South Korea  

  • Most South Korean mills opted for domestic scrap purchases amid a jump in imported prices on high freight charges.
  • The weekly Davis Index for domestic Heavy A, Tuesday, rose by KRW15,000/mt delivered Incheon. Prices rose except in the Pohang region, where most mills, this week, lowered domestic scrap prices by KRW10,000/mt ($9/mt) on slow demand.
  • The Davis Index for containerized HMS 1&2 (80:20), Wednesday cfr South Korea, was up by $4/mt from the prior week.
  • For the non-ASEAN countries, China lowered import duties to zero. Appetite for steel import in China is likely to benefit the industry keeping global steel prices elevated in the near term. With Chinese mills increasing billet imports, steel mills in South Korea could ramp up production for exports.
  • Traders decided to hold back purchases amid a rise in Japanese scrap offers this week.
  • In Asian bulk markets, in absence of South Korean mills, Vietnamese and Thai mills booked bulk cargoes paying higher. ($1=KRW1,111)

 

Taiwan  

  • Feng Hsin steel raised rebar prices by TWD200/mt on Monday but kept ferrous scrap prices unchanged.
  • The weekly Davis Indexes for domestic HMS 1&2 (80:20) in South and North Taiwan marginally dropped by TWD100/mt.
  • In the overseas markets, the Davis Index for US-origin containerized HMS 1&2 (80:20), Thursday, settled at $433/mt cfr Taiwan, up by $4/mt from April 22 following rising offers.
  • Offers rose after China canceled rebates on 146 steel product exports which could boost global steel prices further in the coming days.
  • There is a gap of over $20-25/mt between HMS imported from Japan and the US, this would push the US offers further, believe traders.
  • On a weekly basis, the Davis indexes for containerized #1 HMS and shredded rose by $5/mt and $2/mt cfr Taiwan, respectively, from April 22. ($1=TWD27.87)

 

China

  • In China, Shagang Steel raised its domestic scrap procurement prices by CNY50/mt ($8/mt) on Monday with steel prices scaling a decade’s high. The weekly Davis Index for the HMS 1&2 (80:20) delivered mill, was up by CNY15/mt including 13pc VAT. Mills restocked scrap ahead of the Labor holidays from May 1-5.
  • The Chinese government has lowered export rebates on 146 finished steel products including HRC, rebar, wire rods effective May 1. The country also nullified import tax on billets from all non-ASEAN countries like India, South Kora, Russia from 2pc to aid  the domestic market. Steel prices in China could stay strong and support Indian mills to target better prices in the export markets. The export tax on ferroalloys increased to 15pc from 10pc earlier. ($1=CNY6.48)

 

Vietnam 

  • The weekly Davis Index for HMS 1&2 (80:20) rose by VND250,000/mt delivered South Vietnam, Tuesday, inclusive of taxes. A sharp rise in HRC export prices and domestic rebar prices encouraged restocking by mills.
  • The weekly index for containerized US-origin HMS 1&2 (80:20), Thursday, rose $3/mt cfr Vietnam. Bids rebounded by over $10/mt following a jump in offers from Japan and the US. An uptick in freight charges limited trades from USWC as mills opted for domestic scrap.
  • Amid tight supply, a mill is heard to have bought Japanese busheling in small bulk at $525-530/mt cfr Vietnam.
  • From last week, the Davis indexes for containerized #1 HMS rose, Thursday, by $2/mt cfr Vietnam. ($1=VND23,010)

 

Indonesia

  • The Davis Index for HMS 1&2 (80:20) jumped by $11/mt from the prior Thursday cfr Jakarta. Mills showed limited buying interest due to the Ramadan lull and preferred short transit origins for immediate melt requirements.
  • Ferrous scrap demand and prices in Indonesia rose buoyed by an increase in Chinese billet imports but restocking slowed ahead of the Labour Day holidays from May 1-5.
  • The weekly index for P&S 5ft Thursday cfr Jakarta rose $12/mt from the prior week amid limited trades. ($1=IDR14,442.3)

 

Thailand

  • The domestic supply of ferrous scrap remains tight, yet many steel mills avoided imported scrap bookings due to Ramadan holidays and preferred domestic material for immediate melt requirements.
  • The weekly Davis Index for domestic HMS 1&2 (80:20) dropped by THB75/mt delivered Rayong mill inclusive of taxes. On Tuesday, thin trades were reported in the range THB13,400-13,450/mt.
  • Offers rose $15/mt in the last two days after a couple of billet deals from ASEAN suppliers heard at $675/mt cfr China. ($1=THB31.37)

 

Malaysia 

  • The weekly index for HMS 1&2 (80:20) remained unchanged on Tuesday from a week ago delivered eastern mills, while rose MYR25/mt delivered western region inclusive of taxes. Most Malaysian mills have halted purchases from seaborne markets since mid-April. Amid the shortage of domestic scrap, many mills raised bids for domestic scrap to avoid depletion of inventory.
  • Offers for imported US-origin HMS 1&2 (80:20) rose by $5-10/mt cfr Malaysia on bullish global cues. ($1=MYR4.09)

 

India 

  • In India, demand for imported ferrous scrap improved, especially from the large-scale mills amid anticipation of steel exports picking up in the coming days. China lowering import duty could benefit Indian billet and HRC makers, who eye to lift steel exports amid weak domestic demand.
  • Many large mills have shifted their focus to fulfill the oxygen requirement of hospitals. In the secondary steel sector, production has dropped by over 40pc at the minimum in Maharashtra, Punjab, and Chhattisgarh after rolling mills slowed operations.
  • The Davis Index for containerized shredded settled rose by $2.5/mt cfr Nhava Sheva, from Wednesday. Deals under negotiations are very few but buyers could resume inquiries amid a shortage of ferrous scrap inventories.
  • The index for US-origin HMS 1&2 (80:20), Thursday, cfr Nhava Sheva, rose by $7/mt from last Friday. The daily Davis Index for UAE-origin HMS 1&2 (80:20) cfr Nhava Sheva was up by $2/mt.
  • Offers for Turning scrap were up by $10/mt cfr Vizag from a week ago. Mills stayed away from booking containerized P&S and #1 busheling. The indexes for P&S and #1 busheling cfr Nhava Sheva up by $2/mt and $7/mt, respectively, from last week.
  • Many yards in Alang have been forced to shut operations due to oxygen shortage, and recycling activities at Alang came to a standstill. For shipbreakers, offers rose above $500/ldt and most ships have been diverted to Bangladesh and Turkey.
  • In Chennai, demand increased for both domestic steel and imported ferrous scrap. Dubai origin #1 HMS cfr Chennai, was up by $5/mt from a day prior. ($1=Rs74.30)

 

India domestic

  • Domestic ferrous scrap prices increased this week on tight supply and moderate demand. There is still uncertainty in the market as the COVID-19 spread is yet to be controlled. In Mumbai, the index for HMS 1&2 (80:20) rose by Rs2,575/mt delivered mill; while in Mandi Gobindgarh, it rose by Rs3,25/mt del mill.
  • Most mills are still purchasing on a need basis waiting for the market to stabilize.

 

Pakistan  

  • Pakistani steel mills booked limited volumes of imported ferrous scrap, and prices gradually moved up this week amid positive market sentiments.
  • Although there is a strict movement retraction in the country, manufacturing remains unaffected. In Gadani, ship demolition has slowed after offers for scrapped ships increased.
  • The daily Davis Index for containerized shredded, Thursday, cfr Port Qasim, up by $1.16/mt.
  • The daily index for US-origin HMS 1&2 (80:20), Thursday, gained $1.25/mt cfr Port Qasim. Pakistan mills continued purchases of #1 HMS, P&S, and rerolling scrap from Dubai. UK-based suppliers refused to sell at current bids due to increased containerized freight charges.
  • The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled unchanged, but from last Friday, the index increased by $6/mt. With inventories with mills depleting, UAE traders are hopeful for increased trading amid a pick-up in steel demand after Eid. Long steel producers in Punjab and Karachi are also optimistic about steel demand after Eid
  • The Davis Index for P&S 5ft and busheling up by $1/mt & $4/mt cfr Port Qasim. Supply for prime grades remained tight.
  • On a weekly basis, the index for domestic Bala billet rose by PKR1,250/mt, and that for G-60 billet rose by PKR1,500/mt ex-works Punjab.
  • The weekly Davis Indexes for rebar were unchanged ex-works Karachi and Punjab. With improvement in demand, most steelmakers are likely to attempt another round of price hike in the coming days.
  • With global HRC offers increasing, Pakistani flat steel producers are mulling hikes in the coming days.
  • Driven by high imported scrap offers, the weekly index for Art Q toke scrap equivalent to a mix of HMS and P&S, Thursday, ex-yard Lahore, rose by PKR500/mt. ($1=PKR153.11)

 

Bangladesh

  • Imported ferrous scrap trades in Bangladesh continued, albeit, for immediate melt requirements. Bangladesh has extended the COVID-19 related lockdown till May 5 amid rising COVID-19 infections. Production activities at large-scale mills continued despite the limited availability of laborers and disruption of logistics.
  • The Davis Index for containerized shredded, Thursday, cfr Chattogram up $7.5/mt from prior Friday.
  • For shipbreakers, offers for scrapped vessels jumped above $520-525/ldt this week, with buyers refusing to accept levels above $500/ldt. Recyclers stayed away from high offers which affected the generation of ship scrap, operations slowed sharply amid high offers and an extended lockdown.
  • The index for HMS 1&2 (80:20) from Latin America cfr Chattogram up $4/mt from prior Friday. The daily indexes for US-origin, UK-origin, and Australia-origin containerized HMS 1&2 (80:20) moved up by $3.5/mt, $6/mt, and $5/mt from the prior Friday.
  • Lower industrial generation due to the shutdown of auto plants has disrupted the supply of premium grades. The Davis indexes for P&S and #1 Busheling, Thursday, rose $2/mt and $7/mt, respectively, from the prior Friday.
  • Monsoon season will begin soon after Eid, a time when construction activities take a backseat, so overall demand is expected to be slower for steel and ferrous scrap.
  • The weekly index for ship scrap equivalent to P&S rose by BDT1,000/mt ex-yards on Thursday. Trades for 16mm ship plates reported at BDT2,000-2,500/mt higher than the prior week.
  • The weekly index for billet was up BDT250/mt ex-works from the prior Friday. Small-and medium-scale steelmakers opted to sell rebars over billet due to better margins.
  • Large steelmakers held their rebar offers above BDT70,000-71,000/mt ex-works, unchanged as they continued to operate at near to full capacity after managing their worker’s accommodation and health safety.
  • The index for rebar from medium-scale mills in Dhaka rose by BDT500/mt ex-works. Unable to manage their operations at full scale amid financial challenges and labor shortage, small-scale steelmakers halted productions. ($1=BDT84.5)

 

Metallics

 

CIS

  • The weekly Davis Index for basic pig iron (BPI) rose by $16/mt in the New Orleans port on Friday as import offers firmed up. The weekly Davis Index for CIS basic pig iron increased by $15/mt in the Black Sea on Friday amid new deals in Europe and Turkey.
  • The latest BPI import offer levels from the CIS or Brazil are between $600-620/mt cfr Nola on rising demand for prime grade material to fulfill upcoming May domestic scrap trade needs. Some producers also note being sold out through August. Buyers see the BPI price point at around $600/mt cfr Nola or under this week.
  • The Davis Index for nodular pig iron (NPI) imports increased by $14/mt. The material is in tight supply and current offers entail shipment by July or later. Offers heard for NPI this week have risen to $680/mt cfr Nola with bid levels as low as $650/mt cfr Nola.
  • The weekly Davis Index for US hot briquetted iron (HBI) imports increased by $6/mt.
  • New transactions for CIS pig iron were fixed at alternative outlets with small cargoes (around 20,000mt in total) sold from the Black Sea for distribution to the Netherlands and Spain at around $620/mt cfr. A Russian exporter sold 5,000mt of low-manganese pig iron for foundries at $595/mt fob Baltic Sea. The same supplier sold 10,000mt of low-manganese pig iron at $595/mt fob Black Sea for distribution to Turkey.
  • The weekly Davis Index for CIS pig iron in Italy increased by $7/mt on Friday amid persisting demand. A deal at $592-593/mt cfr for Ukrainian material was reported after negotiations.

 

India

  • The index for sponge iron rose declined by Rs1,000/mt del Mandi Gobindgarh mill on Thursday, from last week. In Mumbai, the index declined by Rs400/mt del mill. Many mills have idled their induction and electric arc furnaces, impacting demand for melting raw material, including sponge iron. In Maharashtra, Chhatisgarh, and Raipur, production has declined by around 40pc, according to sources.

India semi-finished and finished steel

  • The index for billet in Mumbai drops by Rs500/mt ($7/mt) on Thursday from the prior Friday amid lowered production on oxygen shortage. The index for rebar was unchanged.
  • In Raipur, the index for billet dropped by Rs500/mt ex-works from the previous Friday as demand dampened because of strict lockdown restrictions until May 6. Mills have only enough oxygen to sustain only for the next few days.
  • In Mandi Gobindgarh, the index for ingot was up by Rs100/mt ex-works. The state government of Punjab has instructed the local steelmakers to divert their oxygen supply for medical purposes to meet the shortfall. ($1=Rs74.91)

 

Shipbreaking 

  • Shipbreaking scrap prices rose this week by Rs1,000-1200/mt ($13.4-$16.13/mt) amid tight supply as recyclers have started to shut yards in Alang. The index for HMS attachments and Melting rose by Rs1,000/mt ex-Alang on Thursday from last Friday.
  • The index for 4Ani rose by Rs1,200/mt ex-Alang. The shortage of oxygen has halted gas-cutting activities. The index for 1kg plates rose by Rs1,100/mt ex-Alang.
  • The government has decided to cancel licenses of yards in Alang found using oxygen for dismantling. All oxygen supplies have been diverted for medical use to tackle the COVID-19 crisis. ($1=74.38)

 

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