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Ferrous Market Update: Aug 16-20

Ferrous Market Update 08/20/2021

 

Turkey

 

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) dropped by $5.03/mt on Friday after a new sale was reported.
  • An Iskenderun-based mill purchased 20,000mt of HMS 1&2 (80:20) at $450/mt cfr, along with 7,000mt of shredded scrap and 3,000mt of bonus material at $470/mt cfr from a US supplier.
  • Bids in Turkey fell below $450/mt cfr for HMS 1&2 (80:20) from the USA and the Baltic region at the end of the week. Turkish mills continue to achieve lower prices amid high availability of heavy melt in the global market. Prices are under pressure despite the absence of some suppliers who can’t collect the material and robust prices for prime grades amid strong demand at alternative outlets. Two large cargoes of prime grades were supplied from Canada to European mills through Rotterdam port.
  • Spot rebar prices in the Turkish domestic market were unchanged on Friday. Icdas raised its local rebar prices by TRY80/mt to TRY6,800/mt ex-works Biga and TRY6,880/mt ex-works Istanbul. All these prices include 18pc VAT. ($1=TRY8.50)
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Turkey domestic

 

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey declined by TRY56/mt on Monday after some mills reduced their purchase prices, due to a downtrend in the imported scrap market.
  • Kroman and Kardemir announced new purchase prices for DKP grade at TRY3,850/mt delivered and TRY4,330/mt delivered, respectively, on Aug 14, decreasing them by TRY50-100/mt, while Diler Demir Celik cut its purchase price for the grade by TRY170/mt to TRY3,700/mt delivered on Aug 11.
  • Demand for domestic scrap varies, depending on steel product sales of each Turkish mill. ($1=TRY8.48)
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CIS

 

  • The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap decreased by $8/mt in the Baltic Sea and by $5/mt in the Black Sea on Monday due to sluggish demand.
  • Trading in the Russian export ferrous scrap market was subdued in the second week of August on scarce inquiries from Turkey. Bids for HMS 1&2 (80:20) from St Petersburg were heard at around $450/mt cfr as an Izmir-based mill purchased the same grade from Estonia at $455/mt cfr.
  • Scrap availability from Rostov-on-Don to Turkey was limited as most exporters stepped back and focused on sales in the domestic market, where they found more attractive prices.
  • Scrap collection remained anemic in Russia, though the weekly Davis Index for A3 scrap declined by RUB250/mt in St Petersburg dock and remained flat in Rostov-on-Don dock. 

($1= RUB73.26)

 

 

Europe

 

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region decreased by €4/mt on Tuesday as buyers at foreign outlets targeted lower prices.
  • Ferrous scrap exporters from the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) dropped collection prices further as bids in Turkey and Egypt fell to $445/mt cfr for HMS 1&2 (80:20) and HMS 1&2 (75:25). However, offers from the EU were limited with sporadic sales confirmed at that level. (€1=$1.17)

 

UK dockside

 

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices declined by £2/mt ($3/mt) delivered dockside on Tuesday after buyers continued to drop rates in line with softer export prices. 
  • The weekly indices for north and south UK OA (Plate & Girder) fell by £5/mt delivered dockside while north and south UK 5A/5C (frag feed) ferrous scrap indices were unchanged on the same basis. (£1=$1.39)

 

 

UK domestic

 

  • Davis Index’s monthly UK 1&2, 3B, and OA ferrous scrap consumer indices decreased by £15/mt ($21/mt) delivered mill in August following slower domestic and export demand.
  • Monthly negotiations have tracked developments in weekly dockside pricing mechanisms over the past month. For example, HMS 1&2 (80:20) dockside purchase prices fell by £15/mt on Aug 10 compared to Jul 13, delivered to dock.
  • Premiums for new production scrap grades widened given that they were highly sought after by smelters looking to optimize their productivity. 
  • Davis Index’s monthly 4A/4B, 8A/8B, 12A/C, and 12D ferrous scrap consumer indices climbed by £10/mt on the same basis. (£1=$1.39)
  •  

Spain 

 

  • Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk weekly ferrous scrap indices nudged €2/mt ($2/mt) lower cfr on Friday with some UK and North European suppliers heard to have offered more small bulk cargoes for sale. 
  • A Spanish buyer commented that they continued to receive fresh offers, which will likely intensify next week after recently sharp corrections in iron ore and steel markets. 
  • Moreover, imported cargoes represent a €30/mt discount to equivalent grades procured from local suppliers – but Spanish mills appear to be biding their time until they sense a pricing floor has formed. 
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices were unchanged at €325/mt and €345/mt fob, respectively, during the week. (€1=$1.17)

 

Spain domestic

 

  • Davis Index’s August E1 (old thin), E3 (old thick), and E40 (shredded) indices dropped by €17/mt ($20/mt) delivered mill, respectively.
  • Domestic benchmarks are trading at a €25-30/mt premium to imported small bulk cargoes despite a material decline in Spanish ferrous scrap prices over the past month.
  • A Spanish ferrous scrap trader commented that the domestic market had been propped up by robust consumption and suppliers’ reluctance to sell at lower levels. Moreover, small bulk export rates have dropped much faster over the past four weeks as a result of healthier supply from major exporting nations, particularly the UK. The Spanish small ferrous bulk coaster market declined cfr northern Spain for E3 equivalent scrap grades last week. ($1 = €1.18)
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  •  

US dockside

 

  • Declines in US East Coast collection prices for ferrous scrap tapered down this week after a downward spiral through early August. Houston docks trended flat following sharper drops last week.
  • Healthy ferrous scrap flows amid weak exports are still putting downward pressure on prices though, some deals remain at firm levels, balanced by persisting export activity amid a shortage of available trucking for dockside deliveries.
  • Sales for #1 HMS on the East Coast remained rangebound or edged down slightly, similar to the last four weeks, and range between $330-365/gt per dock location and prior sales level at present. The grade has dropped by $25-35/gt compared to $365-390/gt a month ago.
  • Market participants have voiced some concerns that another round of dockside price decreases may be on the way by next week especially as ocean freight rates are on the rise, now above $50/gt.
  • The Davis Index for US HMS 1&2 (80:20) exports to Turkey was down $7.12/mt at $454.82/mt cfr on Tuesday compared to $461.94/mt cfr on Aug 10. A longer-term monthly outlook shows that prices for this export grade dropped by $30.07/mt on Tuesday compared to $484.89/mt cfr for the material on Jul 20.
  • In Boston, prices are still lagging under nearby docks. The weekly Davis Index for export yard #1 HMS and P&S 5ft both fell by $3/gt delivered Boston dock. The shredder feed index fell by $2/gt delivered Boston export yard.
  • The weekly Davis Index for export yard buying prices in New York was unchanged for #1 HMS and P&S 5ft delivered. Shredder feed was firmer, moving up by $6/gt delivered New York dock.
  • Philadelphia’s Davis Index for export yard collection prices ticked down by $1/gt for #1 HMS delivered and P&S 5ft fell by $2/gt delivered Philadelphia dock. The index for shredder feed remained stronger, rising up by $7/gt delivered.
  • In Houston, the weekly Davis Index remained unchanged for both #1 HMS and P&S 5ft delivered. The index for shredder feed ticked up by $4/gt delivered Houston dock. Local sellers mentioned that shredder feed has added demand right now, while other grades are competing domestically holding some prices firm.
  • US West Coast dockside ferrous scrap prices continued to remain rangebound for the second successive week. The docks at Los Angeles, San Francisco, and Portland have not announced higher prices. They continue seeking scrap and have paid $5-10/gt more in limited circumstances to attract volume deals pointing toward strength in the market despite lower active buys and prices from Asia.
  • The Davis Index for US-origin HMS 1&2 (80:20) fell by $7.12/mt to $454.82/mt cfr Turkey on Tuesday from $461.94/mt cfr on Aug 10. Lower bid prices in the international market, limited global scrap inventories, strong prices to Mexico, high US domestic market prices, and the potential for additional bulk shipments by Asian scrap buyers as they resume business post-recent lockdowns have kept prices low.
  • In 2020, such price trends had resulted in domestic scrap options drops due to the contraction of peddler activities along with a delay in demolition projects and backlogged scrap yard processing. Thus, some market participants expect a surge in interest from import buyers towards the end of summer.
  • September trading outlook for US domestic scrap remains sideways to a fall of $10-20/gt depending on grade and region against August settled prices. Strong US domestic prices and volume demand along with continuing demand from Mexico, is not allowing a fall in dock prices according to market participants.
  • The global scrap market is awaiting cues from the upcoming Japanese Kanto scrap auction. Japanese ferrous scrap prices are mostly unchanged this week with limited scrap collection volumes due to ongoing holidays.
  • South Korean mills are shut due to maintenance or are operating at lower capacities per energy restrictions so domestic scrap prices have contracted but the supply tightness continues and is anticipated to support higher prices upon buyers’ return to import negotiations for Q4 deliveries.
  • In Bangladesh, production is expected to regain momentum in the autumn if the recent COVID-19 pandemic cases come under control. This Asian country has purchased bulk vessels from the West Coast in the past and may do so again given the high freight costs and difficult container availability.
  • The weekly Davis Indexes in Portland for export yard P&S 5ft and shredder feed rose by $1/gt delivered export yard. #1 HMS climbed by $2/gt as some docks paid extra to entice scrap sellers.  Taiwanese mills have recently lowered some finished steel prices along with scrap prices but are expected to begin to rise as construction activity expands in the fall.
  • The San Francisco weekly Davis Index for #1 HMS increased by $1/gt delivered while P&S 5ft trended flat. Shredder feed is showing an upward trend but for the week remained unchanged.
  • In Los Angeles, the Davis Indexes were unchanged across all grades with #1 HMS, P&S 5ft and shredder feed flat.

 

 

US containers

 

  • US containerized ferrous scrap prices fell in New York after a slight increase last week but were rangebound on the West Coast on Thursday.  
  • Several sellers reported a shift towards higher prices, especially in Los Angeles, on HMS 1&2 (80:20) as deals that were quoted at $385/mt fas last week moved to $395-400/mt fas today. In the same region, several market participants reported continued lower bids from some buyers with attempts at $400-410/mt fas on the P&S 5ft while sellers’ expectations were $10-20/mt above those levels given successful placements in the past few days. 
  • The New York weekly Davis Index for #1 busheling fell by $6/mt with the other four grades dropping more. HMS 1&2 (80:20) and P&S 5ft lost some of the gains last week with downward adjustment of $13/mt. Machine shop turnings and shredded both contracted by $12/mt. Buyers that bought shredded near $480/mt fas early last week actively reduced their bids in the region.  
  • The weekly Los Angeles Davis Indexes for #1 busheling and HMS 1&2 (80:20) rose by $1/mt as P&S 5ft trended unchanged while shredded firmed up by $3/mt.  
  • Last week several market participants noted the possibility of price momentum over the next two weeks, and some of that movement became evident by Thursday. However, a few buyers expressed some concerns that the momentum would likely be limited due to the softness in Japanese domestic scrap prices and the drop in iron ore prices last night, especially, if numbers remain low on a prolonged basis. 
  • Japanese domestic ferrous scrap prices reduced this week after an $11/mt drop in Kanto tender prices. Market participants in the US West Coast noted that the Kanto Tender was better than they expected and limits the downward pressure on US exporters.  
  • Taiwan and Vietnam are facing higher containerized cfr offer prices this week. As demand recovers, Asian buyers may engage in trades that have now been delayed a few weeks given the uncertainty in demand for finished steel due to COVID-19 lockdowns and some softness in iron ore prices. 
  • Bangladesh, Pakistan, and Indian buyers are trading limited loads in the import market. Still, buyers are expected to return to purchase ferrous scrap by early September for October and November deliveries with some ramp up in steel production and the end of holidays along with the end of seasonal constraints in electricity usage at mills and construction activity. 
  • The San Francisco Davis Indexes for #1 busheling dropped by $1/mt while HMS 1&2 (80:20), P&S 5ft, and shredded were flat. 
  • In Seattle, the Davis Indexes remained unchanged across all grades (#1 busheling, HMS 1&2 (80:20), P&S 5ft, and shredded) 
  • The latest US-origin import scrap deal to Turkey shifted the US-origin HMS 1&2 (80:20) index down by $0.83/mt to $454.88/mt on Thursday from $455.71/mt cfr on Aug 12. The US domestic September ferrous trade continues with an expectation of soft sideways with prices declining by $10-20/gt depending on the region. A few market participants expect a flat trend with a narrower possibility of price drops of up to $30/gt across all grades including primes (#1 busheling).   

 

 

Mexico

 

Mexico’s scrap prices varied this week depending on region and grade with secondary grades like #1 HMS and shredded increasing in North and Bajio, respectively, while the Central Mexico market trended flat.

  • Supply is expected to strengthen on higher import volumes, though the arrival of these shipments did not reflect this week resulting in the price increases in two of the three regions.
  • The weekly Davis Index in Northern Mexico for #1HMS increased by MXN438/mt delivered Mexico consumer on Friday, P&S ft5 went down by MXN38/mt delivered and shredded climbed by MXN66/mt delivered on Friday. Machine shop turnings decreased by MXN40/mt delivered and #1 busheling prices were up by MXN351/mt delivered on Friday.
  • In Central Mexico, the weekly Davis Index for #1HMS decreased by MXN50/mt delivered Mexico consumer on Friday, while Shredded went up by MXN50/mt delivered. P&S 5ft, machine shop turnings and #1 busheling all remained rangebound delivered today.
  • Bajio Mexico’s weekly index for #1HMS climbed by MXN47/mt delivered Mexico consumer on Friday, while P&S 5ft rose by MXN42/mt delivered. Shredded increased by MXN83/mt delivered, while machine shop turnings increased by MXN11/mt delivered and #1 busheling decreased by MXN57/mt delivered. ($1=MXN20.43)

 

 

Japan

 

  • Japan’s monthly Kanto Tetsugen scrap tender for August concluded Thursday with the average bid at JPY46,646/mt ($423.3/mt) fas Tokyo port, down JPY1,242/mt ($11.3) than last month’s average of JPY47,888/mt fas.
  • Tokyo steel cut ferrous scrap purchase prices by JPY500/mt ($4.56/mt) and JPY1,000/mt ($9.12/mt) for all grades at Tahara and Takamatsu, respectively, effective Aug 20, following the Kanto tender results. 
  • Bids for HMS #2 are at JPY48,500/mt ($442.12/mt) del Tahara and JPY48,000 ($/mt) del Takamatsu.
  • The steelmaker raised the listed retail prices of pickled and oiled sheet prices by 2.4pc for September deliveries. 
  • The weekly Davis Index for #2 HMS, Wednesday, was flat fob Japan and fas Japan.
  • The weekly Davis Index for Japanese P&S 5ft (small bulk) settled down by $25/mt cfr China port.  
  • The weekly index for the #1 busheling (shindachi) is unchanged both on fob Japan and fas Japan basis.
  • Low grades in Japan softened by $5/mt, whereas high grades remained firm amid limited supply.
  • The weekly Davis Index for shredded and P&S 5ft were flat fas Japan.  
  • Meanwhile, Japan extended its COVID-19 emergency lockdown till Sep 12 in Tokyo and other areas as cases surged. ($1 = JPY109.59)

 

 

South Korea

 

  • Hyundai steel slashed Japanese scrap prices by JPY500/mt ($4.56/mt) for all grades on Friday.
  • The weekly Davis Indexes for domestic Heavy A declined by KRW5,000/mt del Incheon and remained unchanged del Pohang. 
  • Trading in the domestic market slowed as many mills remained shut due to maintenance. A supply crunch continues. 
  • Mills were only interested in high-grade scrap from overseas and purchased domestic HMS and low-grade scrap on competitive availability. Korean local scrap continues to be cheaper than import. 
  • The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, cfr South Korea, went up by $6/mt.
  • The weekly Davis Index for P&S 5ft and shredded jumped by $8/mt cfr South Korea.
  • The weekly Davis Index for #1 HMS rose by $5/mt cfr South Korea. ($1 = KRW1183.16)

 

 

Taiwan

 

  • The weekly Davis Indexes for domestic HMS 1&2 (80:20) declined by TWD300/mt del Northern mill and Southern mill.  
  • On Monday, Feng Hsin Steel lowered its scrap purchase bids by TWD200/mt while rebar prices were cut by TWD300/mt ($10.77/mt). The producer kept section steel prices flat.  
  • The weekly Davis index for HMS 1&2 (50:50) fell $5/mt cfr Taiwan.  
  • The weekly Davis Index for containerized #1 HMS and #1 busheling rose by $10/mt each cfr Taiwan. 
  • The index for shredded rose by $11/mt, while the index for P&S 5ft rose by $13/mt cfr Taiwan.  
  • The weekly index for HMS 1&2 (80:20) settled at $438/mt cfr Taiwan port, up by $1/mt. 

($1 = TWD28.04)

 

 

China

 

  • The weekly Davis Index for HMS 1&2 (80:20) remained unchanged, delivered China consumer on Tuesday. Amid stricter production cuts demand for ferrous scrap slowed. Bids for imported ferrous scrap lagged by a huge gap.
  • Shagang steel lowered scrap bids by $7.70/mt for all grades, effective Aug 19. 
  • Port operations were affected by enhanced quarantine controls at various sites and transportation facilities, resulting in logistic challenges. For export, demand for HRC was flat with prices at $940-950/mt fob China.  
  • China Iron and Steel Association has appealed to steel mills to limit exports of lower grade steel products. 
  • The daily domestic billet price in China on Friday dropped by CNY30/mt ex-Tangshan inclusive of VAT. Billet prices in China dropped by a total of CNY210/mt from last Friday. Bids for imported billet thus dropped below $660/mt cfr China which pressured exporters. ($1= CNY6.48)

 

 

Vietnam

 

  • The weekly Davis Index for HMS 1&2 (80:20) in Vietnam inched down by VND18,235/mt ($0.79/mt) delivered Southern mill.   
  • Demand for finished steel weakened due to a surge in COVID-19 cases. Firm imported scrap offers supported domestic scrap prices. Restrictions are likely to continue till Aug 22.
  • ASEAN billet demand remained subdued while prices were on a downtrend, falling below $690-695/mt cfr China, down $10/mt from a week earlier.  
  • The weekly Davis index for containerized #1 HMS, Thursday, rose by $3/mt cfr Vietnam. The weekly index for shredded and P&S 5ft rose by $6/mt each cfr Vietnam.
  • The weekly index for #1 bushelling rose by $5/mt cfr Vietnam port. 
  • The weekly Davis index of HMS 1&2 (80:20) went up by $5/mt cfr Vietnam from the prior week. ($1 = VND22832.93)

 

Indonesia

 

  • The weekly Davis index for P&S 5ft rose by $17/mt cfr Indonesia port.  
  • The weekly Davis Index for shredded rose by $15/mt while the index for #1 busheling rose by $13/mt cfr Indonesia. 
  • Prices rose in Indonesia following a demand recovery and resumption of trades amid limited inventories at mills. 
  • The partial lockdown in Indonesia will be active until Aug 23. Domestic scrap prices are still cheaper and therefore preferred. ($1 = IDR14472.15)

 

 

Thailand

 

  • The weekly Davis index for domestic HMS 1&2 (80:20) rose by TWD250/mt ($7.5/mt) del Rayong mill. Thailand extended the COVID-19 restrictions to more regions. Steel mills continued to stay away from imports. ($1 = THB33.37)

 

 

Malaysia

 

  • The weekly Davis Index for HMS 1&2 (80:20) for del eastern mill and del western mill went up by MYR30/mt ($7.07/mt). The political situation in the country worsened with the PM stepping down. Surging COVID-19 cases and an extension of the lockdown impacted trades in the country.  ($1 = MYR4.24)

 

India 

 

  • Mills in India booked trades for imported ferrous scrap, especially HMS from the UAE and Africa for their immediate melt requirements. As the monsoon starts withdrawing active trades are expected in India while production rates are likely to keep improving gradually. 
  • Sentiments are positive in India with the expectation of steel prices staying firm for September deliveries. Mills were eyeing export opportunities, but bids lagged expectations. 
  • The daily Davis Index for containerized shredded, Friday, dropped by $0.75/mt cfr Nhava Sheva. But the index was up by $1.25/mt from the prior Friday. Only alloy makers who need shredded on a regular basis could restock amid low inventories, traders said. 
  • The daily Davis Index for UAE-origin HMS 1&2 (80:20) inched down by $2/mt due to weak domestic cues on Friday. The index was up by $3/mt from the prior Friday. 
  • The Davis index for containerized P&S was stable while the index for #1 busheling dropped by $4/mt from Aug 13. Inquiries for prime grades remain halted as mills found it unattractive.  
  • Domestic melting scrap prices in Alang dropped by Rs1,000/mt over the week as yards liquidated inventory piled up during the 18-20 day-long transporters’ strike. In Mumbai, the asking prices for rebar drop by Rs300/mt on Friday ex-works, yet rebar prices were higher than prior Friday on stable demand. 
  • Rebar demand is still weak in North India. In Chennai, mills preferred domestic scrap and trades for imported scrap were largely suspended.  
  • The impact of weakened Chinese steel prices seems limited as exports from the country have almost halted on threats of potential export tax hikes.   
  • The daily domestic billet price in China on Friday dropped by CNY30/mt ex-Tangshan inclusive of VAT. Billet prices in China were dropped by a total of CNY210/mt from last Friday. Bids for imported billet thus dropped below $660/mt cfr China which pressured Indian export offers. ($1=Rs74.43; CNY6.48)

 

 

India domestic

 

  • Domestic ferrous scrap prices were flat to down this week in Indian markets. Demand from finished steelmakers was subdued which limited buying to immediate melt requirements.
  • The daily Davis Index for HMS 1&2 (80:20), Friday, settled flat del Mandi Gobindgarh, while the index declined by Rs500/mt del Mumbai mills from Aug 13.
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Pakistan  

 

  • Imported ferrous scrap trades halted as the government announced Aug 18 and 19 as public holidays on account of Muharram. Trades, however, could resume from the next week. Several construction projects are slated to pick pace as the monsoon recedes. 
  • Major steel mills hiked rebar prices by PKR6,000/mt ($36/mt) on Aug 17. The weekly Davis Index for rebar rose PKR5,500/mt ex-works Karachi on Friday. The weekly index for rebar ex-works Punjab was up PKR5,000/mt from Aug 13. Domestic steel prices surged as demand rose. Also, the Pakistani rupee depreciated to PKR164.18 against the US dollar, on Friday. A lower exchange rate adds to the landed cost of ferrous scrap, thereby raising the input cost of steel producers. 
  • The daily Davis Index for containerized shredded remained unchanged on Friday cfr Qasim. The index rose by $6/mt from last Friday. A few offers rose following the strengthening of rebar prices in the country. 
  • Demand for the UAE origin HMS was steady in India and Pakistan this week. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled flat at $495/mt cfr port Qasim. The index rose by $3/mt from Aug 13. 
  • The daily index for US-origin HMS 1&2 (80:20) cfr Port Qasim on Friday, up $1.25/mt from Thursday and the same was higher by $6.25/mt from Aug 13. As containerized freights rates increased on potential delays, demand for long transit materials stayed low in South Asia. 
  • The Davis Index for P&S 5ft recovered by $2/mt from the previous Friday while the index for #1 busheling remained unchanged cfr Port Qasim. 
  • The weekly index for domestic Bala billet rose by PKR4,000/mt ($24.3/mt) ex-works. The weekly index for G-60 billet ex-works Punjab, on Friday, up by PKR3,750/mt.
  • The weekly index for Art Q toke scrap (equivalent to a mix of HMS and P&S) and Pure Q toke scrap (equivalent to shredded) increased by PKR1,500/ ex-yard Lahore, respectively, amid tight supply and a surge in steel prices. ($1=PKR164.34)

 

Bangladesh

 

  • Mills in Bangladesh ramped up steel productions. Supply for finished steel is ample amid high inventories piled up during the lockdown. Mills focused on liquidating steel stocks and postponed their ferrous scrap buying activities.
  • Amid low buying interest, the daily Davis Index for containerized shredded, Friday, stayed unchanged cfr Chattogram. The index gained $1.25/mt from Aug 13. Shredded scrap buyers were quiet amid the holiday lull and are waiting for monsoon’s withdrawal to resume trades. 
  • A few mills are struggling to increase their credit limits with banks. Sharp rise in commodity prices and freight charges have hurt their import capabilities. 
  • The daily index for US-origin containerized HMS 1&2 (80:20) settled unchanged cfr Chattogram, from a day and week prior. The increasing availability of HMS in most supplier countries has weighed prices down.
  • The indexes for UK-origin and Australia-origin HMS 1&2 (80:20) settled cfr Chattogram, respectively, down by $2/mt from Aug 13. The daily Davis Index for HMS 1&2 (80:20) from Latin America dropped by $1/mt. The index dropped by $3/mt, as compared to last Friday. Traders were witnessing a shortage of empty containers for exports.
  • Buyers sought HMS from Brazil and the UK amid high freight charges for bulk cargoes from Australia and the US west coast.
  • The Davis Indexes for P&S 5ft and #1 busheling dropped by $3/mt from last Friday.
  • The weekly index for ship scrap equivalent to P&S settled ex-yards, up BDT1,500/mt.
  • The weekly index for rebar from large-scale mills rose by BDT250/mt ex-works. The weekly Davis Index for rebar by the medium-scale and small-scale mills rose by BDT500/mt and BDT750/mt respectively.  
  • The weekly index for billet ex-works was up BDT1,500/mt. ($1=BDT85.1)

 

Metallics

 

US/CIS

 

  • The weekly Davis Index for basic pig iron (BPI) decreased by $8/mt cfr New Orleans port on Friday amid sustained inactivity while the CIS BPI index fell by $10/mt fob Black Sea on oversupply.
  • US imported pig iron markets have been quiet over the past two weeks on ample domestic supply. Demand is absent in the US, though buyers expect lower prices when they resume BPI purchases. Price points for BPI have fallen by $66/mt in the past month, down from $636/mt cfr Nola on Jul 23.
  • Some importers believe that BPI price may fall below $500/mt fob Black Sea, considering the high availability of material and a downtrend in the global iron ore market.
  • The Davis Index for nodular pig iron (NPI) imports remained unchanged at Nola on firm offers from tight supply while US hot briquetted iron (HBI) imports also trended flat at Nola due to low activity.
  • Italy’s imported pig iron market was quiet amid summer vacations in the country, pulling down the weekly Davis Index for CIS BPI by $15/mt cfr Italy on Friday.
  • The only booking from the CIS was heard this week in Turkey, where a cargo of BPI was sold at around $530/mt fob to a large steelmaker. The market is bearish amid oversupply from the CIS and offers from India at $550-560/mt cfr Turkey.

 

 

India

 

  • The index for sponge iron prices settled flat to Rs31,600/mt ($424.80/mt) del Mumbai mills and rose by Rs800/mt del Mandi Gobindgarh from Aug 13. ($1=Rs74.39)

 

India semi-finished steel

 

  • The Davis Index for billet in Mumbai, Friday, dipped by Rs200/mt ($3/mt) ex-works on a weekly basis. Billet prices rose in the first half of the week but lost steam in the second half.
  • In Raipur, the daily index for billet remained unchanged on limited buying interest.
  • While in Mandi Gobindgarh, the daily Davis Index for ingots fell Rs200/mt from the previous Friday.

 

 

Shipbreaking weekly

 

  • Shipbreaking scrap trades resumed this week after transporters’ strike of 18-20 days. Piled up inventory forced shipbreakers to reduce their offers. The daily Davis Index for HMS attachments and Melting declined by Rs1,000/mt ($13.44/mt) ex-Alang on Friday compared to Tuesday. 
  • 4Ani prices declined by Rs800/mt ex-Alang and the index for 14Ani declined by Rs500/mt in the same period.
  • While Ship plate prices also declined during the week. The index for 2kg plates declined by Rs400/mt ex-Alang.

 

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