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Ferrous market update: August 24-28, 2020

Ferrous Market Update 08/28/2020

 

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) climbed by $0.83/mt on Friday as suppliers continued to insist on higher prices.
  • Negotiations, mainly for October shipment, are in progress with bids reported at $285-288/mt cfr for HMS 1&2 (80:20) from the USA or the Baltic region. However, most exporters are offering this grade at $295-300/mt cfr.
  • A Scandinavian supplier recently closed a deal with a Turkish mill at $295/mt cfr for 7,000mt of HMS 1&2 (80:20) and at $305/mt cfr for 7,000mt of P&S 5ft.
  • Turkey’s daily domestic rebar spot prices were unchanged at TRY3,850-3,880/mt ex-works, including 18pc VAT, on Friday, while exported rebar prices held at $440-445/mt fob. 
    ($1 = TRY7.33)
  •  

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region was unchanged on Tuesday, as suppliers tried to maintain the inflow of material in anticipation of higher prices in Turkey.
  • Ferrous scrap exporters from the Netherlands and Belgium did not revise collection prices, because they required tonnages to complete their cargoes for September shipment and expect buying activity on export to improve further, especially in Turkey. (€1 = $1.18)

 

UK dockside

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices both jumped by £10/mt delivered dockside on Tuesday.
  • UK bulk exporters raised dockside purchase prices to secure sufficient volumes and fill booked vessels despite softening major seaborne scrap prices over the past week. 
  • While British ferrous scrap processing margins have narrowed as a result, one trader commented that they remained relatively healthy at around £30-40/mt. 
  • Another UK-based trader noted they were standing by in anticipation of the next flurry of bookings from Turkish buyers. 
  • The weekly indices for both north and south UK OA (Plate & Structural) increased by £10/mt delivered dockside on Tuesday. 
  • Davis Index’s north and south UK 5A/5C (frag feed) ferrous scrap indices both climbed by £5/mt delivered dockside over the same period. (£1 = $1.31)

 

Spain

  • Davis Index’ weekly northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices edged up by €3/mt ($4/mt) on Friday.
  • Spanish small bulk ferrous scrap import prices have lagged other markets over the past week in response to a lack of fresh deals with some market participants away for extended vacations.
  • Turkish HMS 1&2 (80:20) import tags have jumped by €12.5/mt to $295/mt cfr in the week to August 28 compared with a more modest increase of $4/mt to Spain.
  • Similarly, Davis Index’ UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded climbed by €2/mt over the same period on Friday.
  • One British-based scrap exporter commented that Spanish import prices “must” increase during the next round of negotiations. (€1 = $ 1.19)

 

US dockside

  • US East Coast and Houston dock collection prices for ferrous scrap remained unchanged for most ferrous scrap grades amid slowing material flows, modest export demand, impending domestic sales, and hurricane impacts along the Gulf Coast.
  • East Coast dockside prices remained in the range of $220-225/gt on Tuesday for most HMS 1&2 (80:20) tonnage although soft increases of $1-4/gt have ensued since last week. Sellers have reportedly held back on sales until prices increase due to a lack of material and uncertainty over forthcoming scrap flow.
  • The domestic market is also strengthening, and price increases are expected in September trading, following initial August price rises. The upward momentum is causing some export market participants to retain tons for now.
  • In Boston, the weekly Davis Index for export yard HMS 1&2 (80:20) increased by $3/gt delivered dock. P&S 5ft rose by $4/gt delivered while shredder feed was flat.
  • The weekly Davis Index for export yard buying prices in New York inched up by $3/gt delivered for HMS 1&2 (80:20). P&S 5ft rose by $4/gt delivered while shredder feed declined by $2/gt delivered. 
  • In Philadelphia, the Davis Index for export yard collection prices of both, HMS 1&2 (80:20) and P&S 5ft moved up by $1/gt delivered dock. The index for shredder feed rose by $2/gt delivered. Some dealers priced shredder feed as high as $180/gt delivered Philadelphia dock on Tuesday.
  • The weekly Davis Indexes in Houston remained unchanged for HMS 1&2 (80:20) and P&S 5ft, while the shredder feed index decreased by $7/gt delivered. 
  • Trading at Houston port was halted temporarily on Tuesday due to the impending Hurricane Laura and its potential impact on the Gulf Coast. However, price increases are likely at the Houston dock next week.
  • US West Coast ferrous scrap dock prices increased in San Francisco but were rangebound in Los Angeles and Portland. 
  • Japan’s increasing export scrap prices are supporting the alternative US scrap source. Indian mills are expected to begin October bookings soon, which will place further competition in the market. Many countries in Asia are encountering higher domestic scrap prices and tight scrap supplies as fall steel production ticks up with seasonal construction, which will further support import options. 
  • Although some buyers expect corrections at a time when mills are assessing continued weak demand in finished steel, Turkey’s latest deals are supporting upward price expectations.
  • Concerns over softening export prices eased on Tuesday with Turkey’s latest import scrap deals going public at $283-287.5/mt cfr on HMS 1&2 (80:20). While Turkey does not usually buy from the West Coast, the trades influenced the global barometer due to continued demand in a period of tight scrap inventories. 
  • The weekly Davis Indexes in Portland remained unchanged for HMS 1&2 (80:20) and P&S 5ft. The index for shredder feed also held despite buyers beginning to offer more to attract inventories. The index incorporates total ranges and lags representing this activity. Given the tight scrap supply and the expected increase in US domestic scrap prices at regional mills, dock prices in Portland could increase next week. 
  • In San Francisco, the weekly indexes increased with HMS 1&2 (80:20) up by $17/gt delivered, P&S 5ft increasing by $19/gt delivered and shredder moving up by $10/gt delivered. 
  • The West Coast has been affected by fires. Specifically, the San Francisco area is on recommended evacuation in some areas and has limited outside exposure to smoke for employees, which may affect shipments from some scrapyards to the docks. 
  • Los Angeles’ Davis Indexes remained rangebound with the index for HMS 1&2 (80:20) up by $1/gt while P&S 5ft was unchanged. The shredder feed index increased by $2/gt delivered as docks sought feedstock. 

 

US containers

  • US containerized ferrous scrap indexes increased on both coasts on continued strong sentiment due to Turkish scrap import prices, tight scrap inventories globally, and continued demand from Asian countries.  
  • Containerized scrap in Los Angeles and New York gained after a pause last week when some buyers hesitated on closing deals on concerns over higher scrap prices amid the still developing finished steel market demand in the countries of origin.  
  • Higher import activity from China, global stimulus efforts, seasonal construction activity in the US, and more economic activity globally are also supporting expectations of more steel production and corresponding raw materials prices.  
  • The weekly Davis Indexes in New York increased with #1 busheling rising by $10/mt, HMS 1&2 (80:20) moving up by $5/mt, and P&S 5ft climbing by $9/mt.  
  • In Los Angeles, the Davis Indexes for both #1 busheling and HMS 1&2 (80:20) increased by $11/mt and P&S 5ft rose by $10/mt.  
  • The spread between HMS 1&2 (80:20) and better grades such as P&S 5ft increased again this week after narrowing in transactions last week.  
  • West Coast sellers expected prices to rise by $10-15/mt on containers, towards the end of August, on stronger Japanese scrap export offers and the expectation of US domestic scrap increasing by $20-30/gt. Pacific northwest mills are expected to increase domestic buying prices in early September requiring regional docks to increase their buying prices.  
  • Several sellers and buyers reported expectations of prices continuing to firm up into next week making note of the tight scrap situation and continued interest from Vietnam, Bangladesh, and other markets. This despite concerns from Taiwan and South Korea, where some buyers are slowing inquiries due to sufficient scrap inventories, concern over higher prices against stagnant finished steel prices, and uncertainty on global billet prices.  
  • The Davis Indexes in San Francisco increased for #1 busheling by $7/mt and HMS 1&2 (80:20) by $9/mt. Seattle indexes increased across all grades with #1 busheling rising by $5/mt and HMS 1&2 (80:20) climbing by $10/mt.

 

Mexico

  • Domestic ferrous scrap prices increased in Mexico after demand strengthened over the past two weeks.
  • In Northern Mexico, the weekly Davis Index for HMS 1&2 (80:20) increased by MXN228/mt, while P&S 5ft and #1 busheling climbed by MXN211/mt and MXN200/mt, respectively. Machine shop turnings moved up by MXN191/mt, while shredded was flat.
  • Ferrous scrap prices in the Bajío region rose by MXN350/mt ($16) from last week and are expected to continue their upward movement as scrap flows improve and the automotive industries in the region look to ramp up their production volumes.
  • The weekly Davis Index in Bajío for HMS 1&2 (80:20) increased by MXN450/mt and went up for machine shop turnings by MXN500/mt. The index for #1busheling and P&S 5ft rose by MXN450/mt and MXN450/mt, respectively.
  • In Central Mexico, the Davis Index for HMS 1&2 (80:20) climbed by MXN300/mt and increased for machine shop turnings by MXN300/mt. P&S 5ft and #1 busheling also moved up by MXN87/mt and MXN600/mt, respectively.

 

Japan  

  • Japanese ferrous scrap export prices continued to rise after the Kanto tender. Deals for #2HMS were heard on fas and fob basis. Trades for HS and Shindachi were also heard during the week.
  • The weekly Davis Index for #1 busheling (Shindachi) rose by JPY300/mt fas. The index for HS rose by JPY500/mt fas, while on fob basis the index rose by JPY300/mt.
  • The index for HMS 1&2 (50:50) increased by $10/mt on Wednesday, on high bids. Bulk cargoes of Japanese H2 scrap were offered to Vietnam this week with no trades heard. 
  • The weekly Davis Index for shredded rose by JPY450/mt fas with deals heard. 
  • Suppliers to South-east Asian markets raised offers for all scrap grades by around JPY500-1,000/mt from the prior week as a direct impact of higher bids for the monthly Kanto tender. Domestic scrap supply crunch in South Korea, Taiwan, and Vietnam also kept imported scrap prices high in the region. Kanto Tetsugen also pushed the South Korean market. 
  • Tokyo Steel announced its fifth scrap purchase price hike in August on Tuesday. Tokyo Steel raised scrap purchase bids by JPY500/mt delivered to all its steelworks, effective Wednesday.
  • Japanese domestic scrap prices have hit a three-month high amid a shortage of material. ($1=JPY105.80)

 

South Korea  

  • Hyundai Steel kept its bids unchanged for Japanese #2 HMS fob and HMS1&2 (50:50) fob. Bids for busheling (shindachi) were raised by JPY500/mt. 
  • The weekly Davis Index for containerized HMS 1&2 (80:20) was unchanged cfr South Korea. Mills preferred to buy bulk over containerized scrap and limited trades were heard at the index price. 
  • South Korean mills expect Japanese export prices to rise, aided by strengthening the domestic scrap market in Japan where ferrous scrap prices increased by around JPY1,000-1,500/mt on Wednesday. The weekly index for shredded rose by $1/mt cfr South Korea. 
  • Offers for HMS 1&2 (80:20) from South American suppliers, rose by $5-10/mt from the prior week. However, mills were keen on lower-priced Russian bulk scrap and domestic scrap. A deal for Russian A3 scrap was heard cfr South Korea late last week.
  • The index for US-origin shredded and P&S 5ft rose by $7/mt and $6/mt, respectively, with no trades heard. 
  • A mill was heard to have bought Japanese H2 on fob basis, while deals for H2 of other origins were heard on cfr basis. 
  • Ferrous scrap prices continue to rise in most Asian markets amid tight supplies. After Tokyo Steel raised its scrap purchase bids Tuesday, Korean mills too raised their bids for domestic ferrous scrap in Korea from a week ago. 
  • The Davis Index for domestic Heavy A delivered Incheon and Pohang rose by KRW10,000/mt, with deals at the index price on Wednesday. The weekly Davis Index for domestic Light A rose by KRW10,000/mt delivered Pohang mill. Limited trades for the grade were reported at the index level.

 

Taiwan  

  • In Taiwan, ferrous scrap offers rose this week despite thin trades. The daily Davis Index for containerized US-origin HMS 1&2 (80:20) was up by $1/mt on Friday. The index rose by $6/mt from the prior week as suppliers hiked offers after the Kanto tender.
  • Taiwanese mills are avoiding high volumes of US-origin scrap, instead opting for lower-priced South American scrap. 
  • The uptick in the Turkish scrap market has also impacted Taiwanese bulk deals. Due to high offers from Japan and the US, Taiwanese mills reduced scrap purchases. No bulk deals were concluded this week.
  • In the containerized market, limited deals were heard for US-origin HMS 1&2 (80:20). Mills preferred buying domestic scrap or delaying purchases. The weekly Davis Index for containerized P&S 5ft fell by $2/mt this week. A deal for Venezuelan HMS 1&2 (80:20) was heard, indicating a preference for lower-priced scrap. 
  • The index for weekly shredded rose by $3/mt on Thursday from the week prior and $8/mt from Aug 13 on higher offers. No trades were heard. Deals for #1 HMS from South America concluded on Monday, with the index settling at the same level.
  • Feng Hsin raised domestic ferrous scrap prices during the week. The Davis Index for domestic HMS 1&2 (80:20) in South and North Taiwan, Tuesday, rose by NT$300/mt delivered mill, respectively. Prices were raised amid an increase in input costs.
  • Market participants said some Taiwanese mills could raise scrap purchase prices in the next week or two, but for now, prices are not viable for steelmakers as finished steel demand in the domestic market is still sluggish. Many mills canceled discounts on rebar base offers to pass on partial input cost hikes to end buyers.

 

China

  • The weekly Davis Index for HMS 1&2 (80:20) fell by CNY20/mt. Shandong Steel kept its rebar prices unchanged for late August shipments. ($1=CNY6.9)

 

Vietnam 

  • In the containers market, the weekly index for HMS1&2 (80:20) rose by $7/mt cfr on Thursday and was up by $11/mt from Aug 13. The weekly index for #1 busheling rose by $6/mt cfr on higher offers, while the index for shredded rose by $9/mt cfr. Deals for US-origin P&S 5ft were also heard this week.
  • Containerized HMS 1&2 (80:20) from the USWC was heard at $260/mt this week. In the bulk market, US-origin HMS 1&2 (80:20) deals were heard in the earlier part of the week.
  • Shortage of domestic scrap and expected high demand for finished steel in September are likely to drive scrap bookings, mill owners said. For August, the demand scenario looks bleak on the back of increasing COVID-19 infection. 
  • The domestic weekly Davis Index for HMS 1&2 (80:20) rose by VND58,333/mt delivered South Vietnam, inclusive of taxes. Offer prices rose, but few trades were heard. 
  • Domestic scrap prices in Vietnam are not as strong as imports. Mills cut long steel prices amid weak domestic demand. Vietnamese mills are cautiously buying imported ferrous scrap amid a shortage of domestic scrap. Limited bulk deals have concluded since last Tuesday.
  • Vietnamese billet suppliers focused on export opportunities as domestic demand for finished steel is yet to recover to pre-pandemic levels. They kept their offers firm for October and November shipments on high imported scrap prices. ($1= VND23,189.72)

 

Indonesia

  • Indonesian mills were cautious about not buying ferrous scrap at high prices, while offers kept rising this week on global cues. The weekly Davis Index for HMS 1&2 (80:20) fell by $10/mt on lowering bids. Market participants felt that the rise in offer prices driven by the Kanto tender and Turkish buying is not proportional to finished steel demand in Indonesia. 
  • Steel mills from Indonesia were offering steel billets cfr Philippines amid high raw material costs. Mills expect demand to improve next week, but for now, are focusing on lower-priced scrap. 
  • The Davis Index for shredded fell by $5/mt this week due to low bids. No trades were heard for the grade. The index for #1 HMS fell by $3/mt from the prior week.

 

Thailand

  • The weekly Davis Index for domestic HMS 1&2 (80:20) inched up on Wednesday by THB200/mt delivered Rayong mill inclusive of taxes, with trades at the index price. Mills preferred domestic material over imports amid bullish offers from most suppliers. 
  • In seaborne markets, no trades were heard for US-origin containerized HMS 1&2 (80:20) cfr Thailand this week.

 

Malaysia 

  • The weekly indexes for HMS 1&2 (80:20) were flat delivered western mills and eastern mills inclusive of taxes. Trades were limited but at the index price. Market participants are expecting finished steel demand to pick up in September and October when the government-funded infrastructure projects are expected to gain momentum. ($1=MYR4.17)

 

India Imports

  • Indian steel mills are optimistic about demand picking up and are poised to raise finished steel prices by Rs2,000-3,000/mt in September. Most steelmakers have ramped up production and a shortage of domestic scrap and sponge iron has spurred trades for imported scrap. Market participants are upbeat about a pick-up in the steel demand from the automotive sector and resumption of construction activities as the monsoon season subsides.
  • Indian billet exporters failed to strike deals at higher prices this week. Heavy rains also reduced domestic trades. 
  • Trades in India slowed further in Punjab as the government has canceled import permits of ferrous scrap exporters. Licenses of all importers have been canceled, it will take at least a week to settle, till then most buyers would opt for domestic scrap.
  • The daily index for containerized shredded cfr Nhava Sheva on Friday was up by around $6/mt from the prior week. Very few trades for US-origin containerized shredded were reported this week. 
  • UAE suppliers increased trades to Indian buyers as Pakistan buyers slowed their purchases. A few trades for Brazilian and Australian-origin HMS 1&2 (80:20) were reported cfr Mundra and Nhava Sheva. After last week’s drop, prices recovered in line with global cues. The index for US-origin HMS 1&2 (80:20) cfr Nhava Sheva rose by $2/mt from Thursday but were unchanged from the prior week. 
  • The Indian rupee has recovered against the US dollar to below Rs74 levels from Rs75 last week. A strengthening rupee will encourage scrap buyers to increase purchases importers said.  
  • Deals for higher grade scrap like busheling and P&S in containers cfr Nhava Sheva reported at up $3/mt and $2/mt, respectively, from the prior week. The weekly index for turnings scrap rose by another $3/mt cfr Nhava Sheva. Brazilian traders sold turnings to Chennai-based traders early this week. ($1=Rs73.3)

 

India domestic

  • Indian domestic ferrous scrap prices declined this week amid low demand from mills, the daily Davis Index for HMS 1&2(80:20) fell by Rs200/mt ($2.73/mt) del Mandi Gobindgarh Friday compared to the previous Friday.
  • Scrap prices dropped this week as mills are stocked with raw materials and are waiting for the monsoon season to subside. The index for HMS 1&2 (80:20) declined by Rs100/mt del Mumbai mills. Markets in the South were flat this week, the index for HMS 1&2 (80:20) remained unchanged in Chennai.

 

Pakistan  

  • Imported ferrous scrap prices in Pakistan rose this week due to an increase in Turkish scrap prices. Some traders have decided to stay away from imports until sales pick up in the domestic markets. 
  • Cash constraints and heavy rain in the Karachi and nearby regions have also reduced scrap trading in Pakistan. Domestic steel prices were expected to fall as mills operate at 100pc capacity amid weak demand. 
  • The Davis Index for containerized shredded cfr Port Qasim Friday rose by $1/mt from Thursday and by $6/mt from the prior Friday. Buyers showed little interest in higher offers while sellers held on to their material hoping for prices to rise.
  • Domestic steel prices dropped marginally in Pakistan despite an increase in imported ferrous scrap prices. The weekly Davis Index for commercial Bala billet, Friday, ex-works Punjab, dropped by PKR1,000/mt from the prior week.
  • The weekly Davis Index for G-60 rebar ex-works Karachi dropped by PKR1,000/mt. In Punjab, the index for G-60 rebar dropped by PKR500/mt ex-works from the prior week amid sluggish demand. ($1=PKR167.4)

 

Bangladesh

  • The Davis Index for containerized shredded on Friday, settled unchanged cfr Chattogram from Thursday but increased by $6/mt from the prior week. Few deals for Australia and New Zealand-origin shredded were heard this week. A few trades of LMS bundles and NP busheling bundles reported at $5-10/mt higher from the prior week.
  • The Davis Index for Australian HMS 1&2 (80:20) rose by $3/mt from the prior week. Mills paid a slightly higher price for a few containers of #1 HMS from South American countries, including Brazil. P&S 5ft from South America and Australia sold higher by $2/mt cfr Chattogram from the prior week. 
  • The weekly index for domestic billet dropped by BDT500/mt ex-works Chattogram. Trades are starting to pick up further with expectations of monsoon subsiding in the next few days. Most large rebar producers kept prices firm, while a few offered discounts of up to BDT1,000/mt.
  • Sales by large mills improved due to a resumption of infrastructural projects, including the Padma bridge. The weekly Davis Index for rebar from medium steelmakers ex-works was down by BDT1,250/mt from the prior week. 
  • In shipbreaking markets, offers for containers and tankers jumped by $20-25/ldt against last trades indicating domestic steel prices could rise on higher inputs costs in the coming days.
  • Following high imported scrap prices, the weekly Davis Index for HMS 1&2 (80:20) rose by BDT1,500/mt ex-yards Chattogram. The Davis Index for shipbreaking scrap equivalent to P&S 5ft ex-yard was up by BDT1,000/mt from the prior week. ($1=BDT84.71)

 

Metallics

 

CIS 

  • The weekly Davis Index for CIS basic pig iron increased by $3/mt on Friday on new bookings to China. A limited allocation of the material and an uptrend in the global ferrous scrap market influenced prices as well.
  • The CIS pig iron export market remained firm with two deals to China reported this week. A Russian supplier sold 50,000mt of the material from the Black Sea at $378/mt cfr to China, while another exporter from Far East Russia sold 10,000mt at $380/mt cfr. 
  • The weekly Davis Index for CIS pig iron in Italy was unchanged at $355/mt cfr on Friday amid a quiet market. Business activity remained at minimal levels in Italy due to summer vacations.

 

US

  • The weekly Davis Index for basic pig iron (BPI) increased by $5/mt cfr New Orleans on Thursday, as elevated offer prices to the US continued due to strong demand and sales to other locations. 
  • Buying in China has been consistent with the latest BPI offers from the CIS at $380/mt cfr China this week, about $5/mt above last week. Current price points for BPI are about $365-370/mt cfr Nola, despite the lack of activity and interest in the US going back to the beginning of July.
  • The September domestic ferrous scrap trade is slated to begin next week with expectations of $20-30/gt price increases compared to August levels. Prices for scrap alternatives will be influenced by the upsurge when buying resumes for those grades.
  • The Davis Index for nodular pig iron (NPI) imports increased by $4/mt cfr Nola, as a price equivalent to bring the US prices closer to the latest sales from Brazil to China at $340/mt fob. That level would be around $390/mt cfr China, and with added freight to the US, it would be around $420/mt cfr Nola. The US has adequate material with no confirmed bookings, so US bids would likely be lower.
  • The weekly Davis Index for US hot briquetted iron (HBI) imports increased by $28/mt cfr Nola. New offers or deals have not been reported for HBI, possibly because of low demand, but the grade will likely be priced near this level, based on the latest sale prices for similar material.

 

India

  • Sponge iron prices in the eastern parts of India declined this week, the index fell by Rs2,000/mt del Durgapur on Thursday from Aug 20. The bi-weekly index for sponge iron declined by Rs850/mt del Raipur in the same period.
  • Major mills in India are about to increase flat product prices by Rs2,500-3,000/mt and long products by Rs1000-1500/mt from September. Traders across India are expecting raw material prices to move northwards once demand from the infrastructure and auto sectors pick up ahead of the festive season. ($1=Rs73.23)

 

Semi and finished steel

  • The daily Davis Index for billet in Mumbai remained unchanged on Friday from the previous week. Early in the week, prices rose as demand improved but flattened later in the week as festivities and rains stalled construction work. 
  • The daily Davis Index for rebar in Mumbai was down by Rs100/mt ($1.36/mt). Finished steel prices are expected to rise in September as major mills pass on higher input costs to end-users.
  • In Raipur, the daily index for billet fell by Rs150/mt ($2.04/mt) from the previous Friday due to high inventory at mills. The daily Davis Index for rebar also fell by Rs300/mt ($4.09/mt) amid lower sales and in line with the fall in ingot prices.
  • The daily index for ingot in Mandi Gobindgarh rose by Rs 500/mt ($6.82/mt) from the previous Friday with a similar increase in local scrap prices. The index for rebar remained unchanged.
  • In Gujarat, the bi-weekly index for rebar was flat on Thursday from the previous week due to the flood situation in the state. Trade activities had halted but are slowly normalizing in the latter part of the week. The bi-weekly index for billet was up by Rs200/mt ($2.72/mt).
  • In Durgapur, the bi-weekly index for rebar declined by Rs1,400/mt from the prior week amid muted demand amid a lockdown imposed to curb the spread of the COVID-19 pandemic. The index for billet also witnessed a similar fall of Rs1,467 from the prior week.
  • In Chennai, the bi-weekly, Davis Index for rebar dropped by Rs583/mt from the prior week. The manufacturers anticipate a rise in finished steel prices by the end of this week.

 

Shipbreaking 

  • Shipbreaking rolling scrap prices were rangebound this week. The index for 8Ani rose by Rs150/mt ($2.04/mt) ex-Alang on Friday from August 21, while the index for 6Ani fell by Rs500/mt ex-Alang.
  • Ship recyclers in Alang reduced offers to clear the inventories as heavy rains in western India hampered logistics and end-users demand this week. 
  • The index for 1kg plates declined by Rs400/mt ex-Alang, the index for 5kg plates fell by Rs100/mt ex-Alang as construction projects halted amid the monsoon season.
  • Scrap prices in Alang rose by Rs300-400/mt this week due to tight supply. The indexes for both HMS attachments and Melting rose by Rs400/mt from the previous Friday. Traders expect prices to improve in the near term once the monsoon subsides and construction activities pick up the pace.

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