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Ferrous Market Update: August 2-6

Ferrous Market Update 08/06/2021

 

Turkey

 

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) climbed by $0.24/mt on Friday following new deals from the Baltic region and Venezuela.
  • An exporter from Venezuela sold a cargo of HMS 1&2 (80:20) at $460/mt cfr Izmir on Aug 6. The cargo was confirmed to be without any shredded scrap or bonus material.
  • A supplier from Denmark sold 17,000mt of HMS 1&2 (80:20), 9,000mt of shredded scrap and 2,000mt of bonus material at an average price of $471.50/mt cfr Turkey. The cargo is due to be shipped in the first half of September. The composition of this cargo was finalized only today, though the parties had agreed on price on Aug 3.
  • More deep-sea transactions are expected following active negotiations in the second half of this week.
  • In the Azov-Black Sea basin, a Karadeniz-based integrated steel mill purchased HMS 1&2 (80:20) at $425/mt cfr and bonus material at $440/mt cfr from Romania. Still, most exporters from Russia (Rostov-on-Don) and Ukraine withdrew offers after Turkish bids dropped below $430/mt cfr.
  • Spot rebar prices in the Turkish domestic market increased by TRY70-100/mt on Friday amid currency fluctuations. ($1=TRY8.63)
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Turkey domestic

 

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey inched down by TRY1/mt on Monday as market sentiment diverged.
  • Turkish mills are following different pricing policies, with some producers holding their ferrous scrap prices unchanged last week, some others decreasing them, and a mill also increasing its purchase prices. ($1=TRY8.63)
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CIS

 

  • The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap decreased by $12/mt in the Baltic Sea and $7/mt in the Black Sea on Monday following recent bookings.
  • Russian ferrous scrap exporters accepted lower prices and sold a few cargoes to Turkey last week. A recycler from St Petersburg was heard to have closed a deal at $471/mt cfr for HMS 1&2 (80:20) and at $486/mt cfr for bonus material for August shipment, while a supplier from Tolyatti was heard to have reached an agreement at around $462/mt cfr for HMS 1&2 (90:10). Offers from Rostov-on-Don were reported at $470/mt cfr Turkey for A3 scrap but were not attractive for importers, who are targeting below $460/mt cfr.
  • Scrap collection is slow in Russia, with the weekly Davis Index for A3 scrap dropping by RUB1,525/mt in St Petersburg dock and holding unchanged in Rostov-on-Don dock. ($1 = RUB72.91)

 

Europe

 

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region declined by €4/mt on Tuesday following sales at lower prices.
  • Ferrous scrap exporters from the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) dropped collection prices following a drop in Turkey’s deal prices. Last week, suppliers accepted bids at $460-465/mt cfr for HMS 1&2 (80:20) and HMS 1&2 (75:25) and resumed sales to Turkey after a long break.
  • This week, the European export market remains bearish as bids in Turkey moved to $455/mt cfr on abundant scrap availability in the global market with US and Baltic recyclers closing deals at $463-464/mt cfr for HMS 1&2 (80:20) and $478-479/mt cfr for shredded scrap and bonus material. (€1 = $1.19)
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UK dockside

 

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices were unchanged on Tuesday. 
  • The UK dockside market witnessed reduced activity this week with some market participants taking annual leave while others turned their attention to monthly mill-yard negotiations. 
  • An interesting development to note has been the increase in premiums for old thick 5’ cut grades, such as OA and plate & girder (P&G), versus HMS 1&2 (80:20) paid by some bulk processors over the past week. 
  • A UK-based ferrous scrap trader commented that premiums for thick grades had begun to widen recently as a result of slack availability and relatively firm demand both at home and abroad. 
  • The weekly indices for north and south UK OA (Plate & Girder) climbed by £3-6/mt  while the weekly north and south UK 5A/5C (frag feed) ferrous scrap indices were unchanged. (£1=$1.39) 
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Spain 

 

  • Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk weekly ferrous scrap indices dropped by €5/mt ($6/mt) cfr on Friday despite relatively firm demand from Spanish buyers, reflecting the recent weakness in competing deepsea routes.
  • UK and north European ferrous scrap suppliers have been working their way through large stockpiles and have even cut dockside purchase prices to constrict yard inflows.
  • A Danish trader expressed a high degree of bullishness that prices would rebound in both deepsea and shortsea markets over the next month.
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices dropped by €7/mt to €335/mt and €355/mt fob, respectively, during the week. (€1=$1.18)

 

US dockside

 

  • US East Coast collection prices for ferrous scrap continued to decline amid abundant scrap supply along with weak export prices and the latest export activity. Houston docks began trending down this week as well following rangebound prices for over a month as scrap flows tightened in the region.
  • Dockside prices have been flat to down since late June while market participants foresee weakness extending towards Q4. However, sellers are not anticipating significant dockside price drops in the short term. Dockside sales for #1 HMS on the East Coast decreased by another $5-10/gt similar to the past two weeks and generally range between $355-365/gt depending on dock location and prior sales level.
  • The Davis Index for US HMS 1&2 (80:20) exports to Turkey declined by $15.78/mt to $463.60/mt cfr on Tuesday compared to $479.38/mt cfr on Jul 27. A longer-term monthly view shows the grade has dropped nearly $40/mt on Tuesday compared to $500.82/mt cfr for the export material on Jul 6. 
  • Shredder feed prices on the East Coast have been erratic, rising considerably in early June, then falling just as much by early July followed by rangebound or small upward or downward price movements. Overall, the grade ranges from $250/gt or a bit under and up to $330/gt based on prior sales, demand, flows, and region.
  • In Boston, prices continue to lag under nearby docks. The weekly Davis Index for export yard #1 HMS fell by $7/gt to $358/gt delivered Boston dock and P&S 5ft decreased by $8/gt to $367/gt delivered. The shredder feed index remained unchanged at $250/gt delivered Boston export yard. 
  • The weekly Davis Index for export yard buying prices in New York decreased by $9/gt for #1 HMS delivered, P&S 5ft fell by $8/gt and shredder feed held on showing an uptick of $2/gt delivered New York dock. 
  • In Philadelphia, the Davis Index for export yard collection prices moved down by $10/gt for #1 HMS delivered and P&S 5ft fell by $9/gt delivered Philadelphia dock. The shredder feed index ticked up by $1/gt delivered. 
  • In Houston, the weekly Davis Index decreased by $8/gt for #1 HMS delivered and P&S 5ft slipped by $4/gt delivered Houston, while shredder feed fell by $2/gt delivered Houston dock. Area participants foresee dock prices going down amid quiet exports and in tandem with domestic activity.
  • US West Coast dockside ferrous scrap prices fell by about $10/gt on transactions finalized at reduced buying prices. Dock prices trended down in August following lower container prices, lower import bulk prices to Turkey, which influences the global trajectory of ferrous prices, softer US domestic scrap market, and lower bulk bids surfacing from potential buyers in Asia. 
  • The Davis Index for US-origin HMS 1&2 (80:20) fell by $15.78/mt to $463.60/mt Turkey on Tuesday from $479.38/mt cfr on Jul 27, adding to the $5.50/mt already lost in the previous week.  
  • EU and Russian dock prices softened on lower realized prices and global scrap moves influenced by Turkey’s lower buying scrap deals this week. 
  • Tokyo Steel cut its domestic scrap prices by about $4.5/mt and that is anticipated to soften export offers from Japan to Asian buyers. Scrap generation could be affected and balanced after the upcoming Obon holiday and could limit discounts on export offers. 
  • Vietnam’s economy is being affected by extended COVID-19 lockdown measures. Domestic scrap prices in Malaysia and Thailand also fell slightly while South Korea and Taiwan prices held ground on tight scrap inventories although mills are facing weaker demand for steel products due to summer seasonality. 
  • Bangladesh and Pakistan buyers are also silent on imported ferrous scrap following subdued steel demand and downward pressure on domestic finished steel prices. Bangladesh reopens its economy from the present lockdown on Aug 5. 
  • The weekly Davis Indexes in Portland for export yard scrap fell for #1 HMS by $9/gt delivered, P&S 5ft contracted by $8/gt and shredder feed declined by $6/gt delivered export yard. Two of the large docks in the region are anticipated to drop prices further by mid-month. 
  • The San Francisco weekly Davis Indexes declined slightly after trending flat in the prior week with #1 HMS declining by $9/g delivered, P&S 5ft dropping by $7/gt delivered, and shredder feed shrinking by $6/gt delivered. 
  • In Los Angeles, the Davis Index declined as prices were officially announced down $10/gt on Monday. Several market participants note the probability of additional discounts on prices in August unless export shows a robust change. The index for #1 HMS and P&S 5ft both fell by $12/gt delivered. Shredder feed dropped for the second week by $12/gt after losing $2/gt last week. 

 

US domestic

 

  • US domestic ferrous scrap trade concluded for August with several markets maintaining the initial trajectory of unchanged price levels for #1 busheling and other prime grades. However, most Southeast and Southern markets, Philadelphia, and mills along the St. Louis River witnessed a $10/gt or more decline in primes. 
  • Overall, secondary materials including #1 HMS, P&S 5ft, and shredded fell by $20/gt against July settlements with Philadelphia being the lone market that deviated with secondary grades falling by $30/gt on continued, reduced mill demand.
  • In Houston, price movements varied by scrap dealer depending on July’s starting points and volumes with the general consensus of down $10/gt-$20/gt on #1 busheling and secondary grades. Some dealers reported changes of down $10/gt while others reported prime at down $20/gt as well. 
  • The indexes for #1 busheling and #1HMS fell by $13/gt and $16/gt delivered Houston consumer respectively. P&S 5ft dropped by $22/gt as shredded limited its fall by $18/gt on news of some last-minute shredded deals at higher prices to a regional mill. 
  • Some mills in various Midwest locations initially bid down $30/gt for shredded and other secondary grades though consensus prevailed and finalized with $20/gt declines. The Chicago monthly Davis Index for #1 busheling held flat, #1 HMS fell $19/gt delivered mill, P&S 5ft dropped by $21/gt delivered, and shredded declined by $20/gt delivered Chicago consumer.
  • In Detroit, several mills reported limited tonnage requirements with some trailing deals reported Friday at below market levels. The Davis Index for #1 busheling held flat, #1 HMS fell by $20/gt, P&S 5ft dropped by $21/gt, and shredded declined by $20/gt delivered Detroit consumer.
  • The effects of reduced mill demand carry into scrap alternative grades as well at present. Brazilian producers, in need of moving basic pig iron (BPI), have dropped sales prices into the US considerably this week with the most recent deal down by $32/mt and the weekly Davis Index for BPI at Nola on Friday. A month ago, on Jul 9 the Davis Index for BPI was $64/mt higher. 
  • Market participants believe the bearish sentiment may continue on ample material flows with the capability to improve by Q4. Still any potential scrap price erosion will be tempered by ongoing strength in steel pricing.
  • Some large dealers expressed the possibility of an increase in September, reversing this week’s losses, on tight feedstock flows in Texas while others in the Carolinas region noted that shredder supplies did not seem to be slowing down this week despite the price drop at the scales. Given the export situation, upcoming mill maintenance schedules, the possibility that some mills overstocked scrap, and overall seasonality, most are of the opinion that the scrap market will continue sideways to soft until November.

 

 

US containers

 

  • US containerized ferrous scrap prices trended rangebound across both coasts on Thursday with some gains on better grades in Los Angeles.   
  • The latest US-origin import scrap deals to Turkey shifted the US-origin HMS 1&2 (80:20) index down further by $7.40/mt to $463.48/mt on Thursday from $470.88/mt cfr on Jul 29. US domestic ferrous scrap is trading this week sideways to down $20/gt on primes such as #1 busheling depending on region and mostly down $20/gt on secondary cut grades. The lower prices could give way to exporters  
  • The New York weekly Davis Indexes trended mostly sideways after facing declines of $14-19/mt last week. Buyers who purchased at lower levels than the indexed prices met resistance, moving transactions up by $5/mt against last week’s levels.  
  • Some sellers did not transact given early deals in August that are now requiring fulfillment. In New York, several noted offers today at $30-40/mt compared to transactions they successfully concluded about three weeks ago. 
  • The index for #1 busheling, HMS 1&2 (80:20), P&S 5ft and shredded all trended unchanged week-on-week. Machine turnings decreased by $3/mt. 
  • The weekly Davis Indexes in Los Angeles encountered transactions near last week’s levels but bids and offers on better grades improved for some dealers. Some sellers also provided short-term discounts, especially, on HMS 1&2 (80:20). After falling for three successive weeks, the indexes met some gains and only HMS 1&2 (80:20) fell by $1/mt, #1 busheling rose by $7/mt, P&S 5ft grew by $5/mt and shredded climbed by $4/mt. Some market participants increased offers on the better grades and claimed improved bids, but it is yet uncertain whether buyers will transact at those higher levels.  
  • Market participants note that export transactions are low given the continued difficulty in obtaining containers and ever-increasing freight rates. The higher freight rates are making it difficult for trades in containerized scrap. Several stated that shipping domestically is becoming more attractive, especially, given the strong domestic prices and foreseeable demand by mills in Q3 and Q4. Mexican mills are reported seeking ferrous scrap containers and are offering $10-20/mt higher on loads compared to Asian buyers. 
  • The San Francisco Davis Indexes rose by $1/mt on #1 busheling as HMS 1&2 (80:20) fell by $1/mt. P&S 5ft and shredded trended flat. 
  • In Seattle, containerized ferrous prices remained rangebound after falling by $6-8/mt in the prior week. The Davis Index for #1 busheling was unchanged week-on-week as HMS 1&2 (80:20) fell by $1/mt, P&S 5ft rose by $2/mt, and shredded increased by $1/mt. 

 

Mexico

 

  • Ferrous scrap prices trended down in Mexico on Friday after a month of increases due to strong domestic demand. 
  • Scrap prices in the region declined by an average of MXN55/mt ($2.74/mt) on Friday as supply outpaced demand and imports of ferrous scrap increased.
  • In Northern Mexico, the weekly Davis Index for P&S 5ft gained MXN150/mt compared to last week, while #1 HMS increased by MXN13/mt delivered Mexico consumer. Shredded grew by MXN50/mt delivered, machine shop turnings trended flat and busheling increased by MXN70/mt delivered.
  • The weekly Davis Index in Central Mexico for #1 HMS moved down by MXN200/mt delivered Mexico consumer on Friday, while P&S 5ft fell by MXN100/mt delivered. Shredded decreased by MXN50/mt delivered, while machine shop turnings fell by MXN200/mt delivered. The index for #1 busheling remained unchanged.
  • The weekly Davis Index in Bajio Mexico for P&S 5ft decreased by MXN60/mt delivered. Shredded dropped by MXN33/mt delivered, busheling was flat, while #1 HMS and machine shop turnings fell steeply by MXN234/mt. ($1 = MXN20.05)

 

 

 

 

 

Japan

 

  • Japanese EAF steelmaker, Tokyo steel cut scrap prices by JPY500/mt ($4.6/mt) for all works and for all grades, except for #1 busheling (shindachi) at Tahara and Okayama. 
  • Revised bid prices for #2 HMS are at JPY48,500/mt del Kyushu, JPY48,500/mt del Utsunomiya, and JPY48,500/mt del Takamatsu. 
  • Japan’s domestic scrap market continues to be quiet. Demand for premium grade outweighs demand for heavy scrap to a large extent. 
  • Scrap exporters complained of a downtrend in HMS #2 with bids lowering week over week. Scrap generation has slowed due to tighter COVID-19 restrictions and Obon holidays coming up next week. 
  • The weekly Davis Index for #2 HMS, Wednesday, fell JPY500/mt ($4.59/mt) fob and fas Japan. 
  • The weekly Davis Index for Japanese P&S 5ft (small bulk) cfr China port declined by $10/mt.
  • The weekly index for the #1 busheling (shindachi) settled flat on both fob and fas Japan basis. 
  • The weekly Davis Index for shredded, Wednesday, dropped JPY5,500/mt ($50.44) and the index for HS fell JPY2,750/mt ($25.22/mt) fas Japan. 
  • Japanese HMS 1&2 (50:50) index for cfr Haiphong, gained $2/mt. 
  • The index for Japanese HMS 1&2 (50:50), Wednesday, increased $5/mt cfr Taiwan. ($1=JPY109.78)

 

 

South Korea

 

  • South Korea’s Hyundai Steel, on Thursday, lowered bids for Japanese ferrous scrap by JPY1,500/mt ($13.71/mt) for HMS #2 at JPY45,500/mt ($414/mt), shredded at JPY55,000/mt ($505/mt) and HS (P&S 5ft) at JPY58,500/mt ($532/mt) fob Japan. 
  • The weekly Davis Index for domestic Heavy A rose by KRW5,000/mt ($4.36/mt) del Incheon, while the index was flat del Pohang. 
  • The weekly Davis Index for domestic Light A settled flat del Pohang. 
  • Trades in the domestic market slowed as mills undertook maintenance work, but supplies remain tight. Additionally, the summer season has dampened demand for steel products.
  • The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, for cfr South Korea, fell $12/mt.
  • The weekly Davis Index for P&S 5ft and shredded cfr South Korea, Wednesday, dropped by $12/mt each. 
  • The weekly Davis Index for #1 HMS, Wednesday, dropped by $12/mt cfr South Korea. ($1=KRW1143.15)

 

 

Taiwan

 

  • Feng Hsin Steel kept its scrap purchase bids flat after lowering it last week. Rebar prices also remain unchanged. 
  • Taiwan’s imported ferrous scrap market has slowed pace amid weak demand. 
  • The weekly Davis Index for containerized #1 HMS and #1 busheling dropped $10/mt cfr Taiwan.
  • The index for shredded dropped by $9/mt, while the index for P&S 5ft dropped by $10/mt cfr Taiwan. 
  • The weekly index for HMS 1&2 (80:20) lost $2/mt from last Thursday. 
  • While the weekly Davis index for HMS 1&2 (50:50) gained $5/mt cfr Taiwan on higher freight.
  • Billets offer to Asia fell by $10/mt cfr Asia. While bids dropped to below $700/mt. 
  • Wire rod offer fell $10/mt cfr Asia, whereas bids were at $760/mt. ($1=TWD27.80)

 

 

China

 

  • International iron ore Fe 62pc prices dropped on Aug 5 in the spot market to $170.05/dmt cfr North China, by $13.1/dmt from the previous day. Prices dropped by over $12/mt from prior Friday amid the Chinese government’s stringent stance towards production cuts and price control. 
  • The daily domestic billet price in China on Friday dropped by CNY50/mt to CNY5,080/mt ($785/mt) ex-Tangshan inclusive of VAT. Billet prices in China dropped by CNY200/mt from last Friday. 
  • Buying interest for billet imports in China lagged considerably despite offers of $680-690/mt cfr China, down $30-35/mt from the peak seen in the earlier weeks. 
  • The weekly Davis Index for HMS 1&2 (80:20) del China consumer settled flat on Tuesday. 
  • Overseas offers for billet at $705/mt-$715 cfr China for September shipment, heard on Tuesday.
  • China’s daily average crude steel production in late July (July 21-31) dropped by 3.97pc from mid-July, according to CISA data. Production dropped as directed by the country’s authorities. ($1=CNY6.47)   

 

 

Vietnam

 

  • The weekly Davis Index for HMS 1&2 (80:20) in Vietnam fell VND200,000/mt ($8.72/mt) delivered Southern mill. 
  • Vietnam is under restrictions until August 22. Restrictions on the movement of people and goods are in place in Ho Chi Minh City and another 18 cities and provinces in the southern region to curb the COVID-19 outbreak. 
  • However, some recovery is observed. Vietnamese mills have received scrap offers from Japan and Hong Kong-based yard. 
  • The weekly Davis index for containerized #1 HMS, Thursday, dropped $7/mt cfr Vietnam. The weekly index for shredded also dropped $7/mt, while P&S 5ft dropped $6/mt cfr Vietnam.
  • The weekly index for #1 bushelling dropped by $7/mt cfr Vietnam port. 
  • The weekly Davis index of HMS 1&2 (80:20) for cfr Vietnam, fell $6/mt from the prior week.
  • Offers for billet dropped by $25/mt cfr Manila for September shipment. ($1=VND22,931.00)

 

Indonesia

 

  • The weekly Davis index for P&S 5ft fell by $11/mt cfr Indonesia port. 
  • The weekly Davis Index for shredded and #1 busheling dropped by $10/mt cfr Indonesia port. 
  • Indonesia has extended the COVID-19 lockdown amid a sharp surge in COVID-19 cases. Ferrous scrap imports have halted as mills preferred domestic scrap due to lower prices. ($1=IDR14,361.70)

 

Thailand

 

  • The weekly Davis index for domestic HMS 1&2 (80:20) fell TWD50/mt ($1.51/mt) del Rayong mill. 
  • Thai mills continued to stay silent amid COVID-19 restrictions that have been extended with tighter containment measures in the capital and high-risk provinces probably until the end of August. ($1=THB33.36)

 

 

Malaysia

 

  • The weekly Davis Index for HMS 1&2 (80:20) for del eastern mill and western mill fell by MYR20/mt ($4.74/mt). The COVID-19 situation in the country has deteriorated amid worsening political turmoil. ($1=MYR4.22)

 

India 

 

  • Indian ferrous scrap importers resumed trades for HMS with the gap between domestic and imported stable. But only a few sellers were ready to match lower bids placed by Indian mills. 
  • Demand for imported ferrous scrap was supported by limited supply in the domestic market. Most steelmakers have announced price hikes of Rs2,000-2,500/mt for rebar and other finished steel products for August shipments. The price hike boosted market sentiment. 
  • The daily Davis Index for containerized shredded on Friday cfr Nhava Sheva, fell $2.5/mt. The index dropped by $8.75/mt from July 30. Offers for shredded from the UK/EU and the US were stable but buyers were silent awaiting clarity on the prices. Softening prices in supplier countries for obsolete grades fuelled expectations of a drop in prices. 
  • The daily Davis Index for UAE-origin HMS 1&2 (80:20) Friday rose $3/mt. The index rose $5/mt from a week prior amid a sustained recovery in demand for HMS in Pakistan and India. For the UAE-origin #1 HMS, active trades were reported at $485-495/mt cfr Nhava Sheva, Mundra and Chennai this week. 
  • The weekly index for P&S fell by $4/mt while the index for #1 busheling dropped by $12/mt from July 30, trade inquiries for prime grades remained halted in India. 
  • The gap between domestic and imported scrap prices in India has narrowed, as a result, mills are actively booking imports.

 

 

India domestic

 

  • Domestic ferrous scrap prices lost steam on Friday and declined in Mandi Gobindgarh.
  • This week, the index for HMS 1&2 (80:20) declined by Rs200/mt del Mandi mills as subdued demand for ingots impacted ferrous scrap demand. 
  • In Mumbai, the index for HMS 1&2 (80:20) was unchanged from a day ago but increased by Rs500/mt from last Friday. A shortage of material due to low collection rates in the past few days and recovery in rebar prices supported the rise.

 

Pakistan  

 

  • Imported ferrous scrap trades slowed this week as mills stepped back following a downtrend in Turkey. Bids dropped as mills aimed lower. 
  • On the other side, domestic steel prices increased by around PKR5,000/mt for the second successive week following currency depreciation and high input costs. 
  • Pakistani rupee continued to depreciate against the US dollar to reach PKR164.09 on Aug 6, from PKR165.6 on July 30. 
  • The daily Davis Index for containerized shredded, Friday, dropped $2.5/mt cfr Port Qasim, on low bids. The index dropped by $14.5/mt from last Friday. Deals for the UK and EU-origin shredded reported at $525-530/mt cfr Qasim. 
  • Demand for the UAE-origin HMS was stable in India and Pakistan. The daily Davis Index for UAE-origin HMS 1&2 (80:20) Friday settled unchanged. From July 30, the index dropped $7/mt. Trades for UAE-origin mixed #1 HMS and P&S continued at $505-515/mt cfr Port Qasim.
  • The daily index for US-origin HMS 1&2 (80:20) cfr Port Qasim settled unchanged on Friday while down $10/mt from the prior Friday. Containerized export offers dropped for the second successive week on the US East Coast. Amid a $25-30/mt drop in US domestic August settlements, some sellers have started offering low as supplies ease. 
  • From prior Friday, the Davis Indexes for P&S 5ft and #1 busheling dropped $17/mt. For prime grades, supply remains tight, and trades were largely halted.
  • Most large-scale mills in Pakistan hiked rebars prices again this week amid stable demand and continued healthy sales. The weekly Davis Indexes for rebar G-60 ex-works Karachi and Punjab, were up by PKR3,250/mt and PKR2,500/mt, respectively, from July 30. Pakistan’s cement and steel industries are benefitting from the government’s initiative to develop the housing sector and promote homeownership. However, end-users are struggling amid high prices. 
  • The weekly index for domestic Bala billet rose by PKR750/mt. The weekly Davis Index for G-60 billet ex-works Punjab, up PKR250/mt from the prior Friday.
  • The Fede¬ral Board of Revenue (FBR) on Wednesday notified fixed price values for steel sales to avoid under-invoicing. This move could benefit all steel producers in the country and boost prices. 
  • The weekly index for Art Q toke scrap (equivalent to a mix of HMS and P&S) rose by PKR5,000/mt ex-yard Lahore and Pure Q toke scrap (equivalent to shredded) rose by PKR5,000/mt ex-yard Lahore. ($1=PKR164.09)

 

Bangladesh

 

  • Bangladeshi mills stayed away from imported ferrous scrap bookings amid weak domestic steel demand. An extended national COVID-19 lockdown until Aug 10 impacted buying interest and resulted in an inventory pile-up.
  • Demand for imported scrap is expected to recover with producers aiming to operate at full capacity when workers return, and monsoon recedes in the coming weeks.
  • The weekly index for ship scrap equivalent to P&S ex-yards rose BDT500/mt. A rise in ship vessels prices pushed recyclers to raise domestic rolling and melting scrap with ship plates prices up BDT3,000/mt. 
  • The weekly index for rebar from large-scale mills Friday settled unchanged ex-works. The weekly Davis Index for rebar by medium-scale ex-works, up by BDT500/mt.
  • The daily Davis Index for containerized shredded, Friday, cfr Chattogram, fell $0.5/mt from Thursday. The index dropped by $2.5/mt from a week ago. Large-scale mills could inquire for bulk shipments on elevated freight rates in the containers market.         
  • The daily index for US-origin containerized HMS 1&2 (80:20) settled cfr Chattogram, down $1.25/mt. From prior Friday, the index dropped $7.5/mt. While the indexes for UK-origin and Australia-origin HMS 1&2 (80:20) were down by $3/mt from July 30. 
  • From prior Friday, the Davis Index for P&S 5ft dropped $2/mt while the index for #1 busheling fell by $7/mt. 
  • The daily Davis Index for HMS 1&2 (80:20) from Latin America was unchanged on Friday. Traders struggled to find empty containers for exports and refused to accept low bids. ($1=BDT84.79)

 

Metallics

 

US/CIS

 

  • The weekly Davis Index for basic pig iron (BPI) fell $32/mt cfr New Orleans port Friday following a lower-priced sale to the US from Brazil. The weekly Davis Index for CIS BPI dropped by $30/mt fob Black Sea on Friday.
  • A sale to the US closed at $585-587/mt cfr from South Brazil for 55,000mt of lower grade, high phosphorus material. Mill demand has been falling, driving producers to drop sale prices.
  • The Davis Index for nodular pig iron (NPI) imports was flat at Nola. Production is limited for the grade and the offers remain near $750/mt cfr Nola or higher with bids under the starting offer level.
  • US hot briquetted iron (HBI) imports decreased by $5/mt cfr Nola. Recent import bids or offers have not been heard for the grade.
  • The CIS export pig iron market was bearish amid subdued demand. As a result, the weekly Davis Index for CIS BPI in Italy dropped by $47/mt cfr on Friday. Transactions are missing as CIS suppliers target $620-625/mt cfr, while bids, which do not exceed $570/mt cfr are scarce amid a summer vacation season in Italy.
  • CIS sellers accepted lower prices to Turkey, where a large mill purchased 20,000mt of BPI at $585/mt cfr during the week.

 

 

India

 

  • The index for sponge iron increased by Rs300/mt del Mumbai and Mandi Gobindgarh mills. From Thursday, however, the index declined by Rs300/mt del Mandi Gobindgarh mill. 
  • State-owned miner, National Mineral Development Corporation (NMDC) has reduced iron ore prices by Rs300/mt ($4/mt) for lumps and by Rs200/mt ($2.7/mt) for fines for August deliveries from the prior month. In July last year, NMDC iron ore lumps and fines were priced lower by around 170pc compared to this year.
  • With China tightening policies on production cuts and supplies expected to ease from Brazil and Australia, iron ore prices are likely to soften in H2. 
  •  

India finished and semi-finished steel

 

  • Major primary steel mills such as RINL raise rebar prices by Rs1,500/mt ($20/mt) for August sales.
  • The daily Davis Index for billet in Mumbai increased Rs450/mt ($6/mt) ex-works from last week, following a rise in rebar prices.
  • In Raipur, the daily index for billet rose Rs250/mt ($3/mt) ex-works from the prior week due to higher sponge iron prices. 
  • In Mandi Gobindgarh, the daily index for ingot declined by Rs200/mt ($1.34/mt) from last week. ($1=Rs74.19) 

 

Shipbreaking

 

  • The Alang shipbreaking market remained shut through the week due to a strike called by the transporters’ association. Shipbreaking scrap prices remained unchanged. 
  • The market is likely to resume work on Saturday as the standoff between mill owners and the transporters’ union is expected to resolve.

 

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