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Ferrous market update: February 8-12

Ferrous Market Update 02/05/2021

 

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) was flat on Friday as US suppliers continued sales at stable prices.
  • Three deals were reported at the end of the week. A Marmara-based mill purchased HMS 1&2 (80:20) at $410/mt cfr, shredded scrap at $415/mt cfr, and bonus material at $420/mt cfr from the USA and an Iskenderun-based mill reached a similar agreement with another American exporter. Both cargoes are due to be shipped in March.
  • One more booking was heard from the USA at $408/mt for HMS 1&2 (80:20) to a Marmara-based mill, but further details were not available at the time of publication.
  • Turkish producers are expected to continue scrap bookings next week, because of which most Baltic and European sellers have opted to wait to achieve higher prices.
  • The daily domestic spot rebar price in Turkey increased by TRY40/mt ($6/mt) on Friday on better demand. Icdas raised its local rebar prices by TRY70/mt ($10/mt) and opened sales in Biga at TRY5,030/mt ex-works, including 18pc VAT, and in Istanbul at TRY5,090/mt ex-works, including 18pc VAT.
  • The daily exported rebar prices moved to $600-605/mt fob. Some deals were done to Israel and Yemen within the range, Davis Index learned. ($1=TRY7.02)
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Turkey domestic

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey fell by TRY250/mt ($35/mt) on Monday as prices for imported scrap and rebar declined.
  • Purchase prices for shipbreaking scrap in the Izmir region fell by $30/mt following the general downtrend in the market. ($1=TRY7.09)

 

CIS

  • The weekly Davis Index for A3 scrap decreased by $18/mt fob Baltic Sea and by $17/mt fob Black Sea on Monday amid muted trading.
  • The Russian export ferrous scrap market was subdued last week on scarce inquiries from Turkey. Bids for HMS 1&2 (80:20) from St Petersburg were heard at around $380/mt cfr last week, as a Marmara-based mill purchased the same grade from Poland at that price level. However, Russian suppliers refused to sell below $400/mt cfr in anticipation of prices rebounding to $415-420/mt cfr later this month.
  • Turkish mills actively negotiated with exporters from Rostov-on-Don last week with bids starting at $380/mt cfr for A3 material on Thursday. However, they failed to find any cargo at that price level and raised bids to $395/mt cfr, which was heard to have been accepted by one seller who was under pressure to ship the vessel. Other suppliers though were firm in their offers at $405/mt cfr and higher.
  • Collection prices decreased due to the strong negative sentiment in the export market. As a result, the weekly Davis Index for A3 scrap dropped by RUB1,525/mt ($20.50/mt) in St Petersburg dock and by RUB250/mt ($3/mt) in Rostov-on-Don dock on Monday. ($1 = RUB74.38) 

 

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region declined by €3/mt ($4/mt) on Tuesday after prices dropped in the most recent deals in Turkey.
  • Collection prices for ferrous scrap decreased in the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) as Turkish importers achieved lower prices in bookings from the UK and the Baltic region late last week. Buyers also insisted on discounts from European suppliers, but most exporters refused to sell at lower levels.
  • Prices in the European export market have been trending down since mid-January, but the tide seems to be turning as demand for imported ferrous scrap has started improving in Turkey this week. Thus, Dutch and Belgian exporters expect transactions at $390-400/mt cfr for HMS 1&2 (75:25) and HMS 1&2 (80:20). (€1 = $1.21)

 

UK dockside

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices edged down by £3/mt ($4/mt) delivered dockside over the past week.
  • UK dockside purchase prices consolidated around the lower end of their range this week with little business done, as market participants wait for cues from major seaborne trade routes.
  • Turkish HMS 1&2 (80:20) ferrous scrap import benchmarks appear to have bottomed out at $397.50/mt over the past week, with many suppliers expecting an imminent resurgence.
  • The weekly index for south UK OA (Plate & Structural) nudged down by £3/mt over the same period to £240/mt, respectively, delivered dockside.
  • Davis’ north and south UK 5A/5C (frag feed) ferrous scrap indices fell by £1-3/mt delivered dockside over the past week. (£1 = $1.38)

 

UK domestic

  • Davis Index’s monthly UK 1&2, 3B, and OA ferrous scrap consumer indices declined by £45/mt ($62mt) delivered mill following the conclusion of mill-yard negotiations in February.
  • British monthly ferrous scrap settlements in February largely tracked developments in the UK dockside market over the past month. 
  • UK dockside purchase prices declined by £25/mt over the past four weeks from January’s peak to the current trough, as buyers took their cues from major seaborne trade routes, particularly Turkey.
  • Local mills could negotiate larger discounts versus pricing action at the dockside, given that many suppliers had large stocks when Turkish prices reversed sharply lower.
  • Since the conclusion of monthly negotiations this week, some domestic mills have reached out to merchants to ask for tonnage increases. This has partly been driven by rebounding steel production rates and foresight to acquire additional material before export prices raise input costs much higher.
  • Davis Index’s monthly UK 4A/4C, 8A/8B, and 12A/C ferrous scrap consumer indices dropped by £45/mt delivered over the same period. (£1 = $1.38)

Spain 

  • Davis Index’s weekly northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices edged up by €3/mt ($4/mt) cfr over the past week.
  • Bids and offers for shortsea small bulk coasters increased by €5/mt over the past week, as the market took its cues from major seaborne trade routes.
  • Given the comparatively smaller size of this market, Spanish ferrous scrap import prices tend to rise and fall at a relatively modest pace. That said, no cargoes were booked, or negotiations concluded as buyers’ and sellers’ bid-offer spreads remained too wide.
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices nudged higher by €2/mt fob during the week. (€1 = $1.21)

 

US domestic

  • Residual ferrous trading finalized in southern US on Monday after most regions finalized prior to the weekend. Many Midwest markets describe the monthly transactions as straightforward, with secondary grades falling by $50/gt, shredded dropping by $60/gt, and primes unchanged. 
  • In the South and Southeast, prime grades also traded sideways but secondary grades traded down $50/gt across all markets against January settled prices. Some pockets on the East Coast witnessed additional price softness. 
  • The monthly Davis Index for shredded in Pittsburgh declined by $74/gt delivered with sales ranging from $385-400/gt. The larger drop was due to certain premiums, which were paid last month when demand was stronger, fading. P&S 5ft fell by $61/gt while #1 busheling remained unchanged.
  • The monthly Davis Index for fob Buffalo dealer fell by $55/gt shipping point for #1 HMS with some sales as low at $335/gt shipping point. Lack of remote demand and a mill that bought at down $75/gt, brought prices down beyond the trend for this grade.
  • Closer to the Midwest, in Cleveland, the monthly Davis Index fell by $62/gt delivered for shredded while #1 HMS declined by $52/gt delivered.
  • In Houston, the monthly Davis Index for #1 busheling increased by $2/gt delivered, as #1 HMS fell by $50/gt, P&S5ft dropped by $49/gt, shredded declined by $51/gt delivered. Machine shop turnings also fell by $50/gt delivered. 
  • The monthly Davis Indexes in Birmingham decreased by $3/gt delivered mill on #1 busheling, fell by $52/gt on #1 HMS, dropped by $54/gt delivered for P&S 5ft, and declined by $50/gt delivered for shredded. 
  • Market sentiment for March is mixed. Some believe that secondary grades may rise modestly as the weather will affect inbound and outbound scrap, which would potentially lead to delayed deliveries to mills. While not a gain on January scrap prices, several communicated they believe that prices could gain $10-30/gt in March on tight supplies. 
  • Some market participants also expect exports to regain momentum in late February as Chinese and Asian buyers return to the market. Other market participants, however, feel scrap may remain soft until mid- to late-Q2 2021.

 

US dockside

  • US East Coast and Houston dock collection prices for ferrous scrap were rangebound following three straight weeks of declines. 
  • Export yard buying prices for #1 HMS on the East Coast are averaging near $310-320/gt increasing by about $5-10/gt in one week. Yet, prices remain unchanged for many sellers moving new material this week. Current pricing compares to the grade transacting at $400-410/gt on Jan 12. 
  • The full range of #1 HMS sales are between $300-330/gt, the same as last week but some deals are priced just below Feb 2 levels while others are above it. A few major bulk exporters raised prices for #1 HMS to $315/gt at certain northern East Coast docks while a southern East Coast exporter paid up to $325-330/gt for the material.
  • Recent export prices to Turkey have dropped by $16.47/mt cfr for HMS 1&2 (80:20) from Jan 26.  
  • Domestic ferrous scrap markets have recently wrapped up February trading at $50-60/gt declines for #1 HMS and other secondary grades. The scrap market’s outlook will depend greatly on export demand that is described as improving on increased activity Tuesday. 
  • Sellers are also hopeful that exports will soon pick up the scrap left overhanging from February’s trade to ease further domestic price declines. 
  • In Boston, the weekly Davis Index for export yard #1 HMS and P&S 5ft was flat while shredder feed increased by $4/gt delivered Boston export yard.
  • The weekly Davis Index for export yard buying prices in New York moved up by $3/gt delivered for #1 HMS and $4/gt delivered for P&S 5ft. Shredder feed inclined by $14/gt delivered. 
  • In Philadelphia, the Davis Index for export yard collection prices of #1 HMS increased by $4/gt delivered and P&S 5ft rose by $3/gt delivered Philadelphia dock. The index for shredder feed increased by $13/gt delivered.
  • Shredder feed is among the widest ranged material with prices transacting from about $210-250/gt delivered based on East Coast dock location and prior sales level.
  • In Houston, the weekly Davis Index increased by $10/gt for #1 HMS and P&S 5ft moved up by $18/gt delivered. The shredder feed index rose $12/gt delivered. 
  • The weekly export yard ferrous scrap prices on the US West Coast were mostly unchanged after declining last week.
  • Contracts that guaranteed incoming flows into docks at January prices continue to be honored in some regions. Sellers are noting that buying ranges will likely rise over the week as the Asian markets strengthen and docks continue needing scrap to fulfill volumes. P&S 5ft remains in short supply.
  • Japanese export offers are increasing, which in turn, is firming up US exporter offer prices. Additionally, dealers are less willing to discount scrap transactions on the expectation that March US domestic scrap may increase by $20-30/gt against the February settled prices.
  • In Portland, the Davis Index for #1 HMS climbed by $4/gt delivered while P&S 5ft increased by $1/gt delivered. Shredder feed improved by $2/gt delivered.
  • The weekly indexes in San Francisco were unchanged for #1 HMS, P&S 5ft and shredder feed.
  • The weekly Davis Indexes for dock prices in Los Angeles were rangebound with #1 HMS, P&S 5ft and shredder feed all trending flat. Regional docks contemplated reducing buying prices by another $20/gt towards the end of last week but maintained prices on tight supply and upward strength showing in the Asian markets. 

 

US containers

  • US containerized scrap prices inched up this week after four consecutive weeks of declines.
  • The weekly Davis Indexes in New York rose by $1-6/mt after declining by $11-20/mt fas last week. The index for #1 busheling and HMS 1&2 (80:20) climbed by $2/mt as P&S 5ft and shredded both increased by $1/mt. Machine shop turnings rose by $6/mt this week after declining by $23/mt last week. 
  • In Los Angeles, the weekly Davis Indexes increased by $7-15/mt this week after falling $23-33/mt last week. The index for #1 busheling, HMS 1&2 (80:20), P&S 5ft, and shredded climbed by $7/mt, $8/mt, $12/mt, and $10/mt fas, respectively. 
  • Some West Coast dealers decreased prices down to $310-325/mt fas last week while others preferred to withdraw from actively offering on low bids after being influenced by uncertainty and concern over excess inventories. Prices are now trending on the higher side of that range with some sellers informing of negotiations at $330/gt and above. 
  • The offers and resulting deals from the US have firmed up as Asian markets have begun showing strength through stronger domestic scrap prices, and higher finished steel demand and pricing, along with higher Japanese export scrap offers. 
  • In San Francisco, the weekly indexes climbed by $9/mt for #1 busheling and $15/mt fas for HMS 1&2 (80:20). P&S 5ft and shredded rose in tandem by $12/mt fas. 
  • The Davis Indexes in Seattle recuperated some of the $17-22/mt price drops from last week with gains of $10-15/mt this week. The index for #1 busheling and shredded rose by $12/mt fas. HMS 1&2 (80:20) gained by $10/mt fas as P&S 5ft increased by $15/mt fas. 
  • Both sellers and buyers agree that prices are regaining ground and are likely to continue climbing through the rest of February. Positive information is expected from China and the Asian markets after the Lunar New Year holiday. Turkey, with tight scrap inventories worldwide, is encountering higher import scrap prices given the positive expectation. 
     

Mexico

  • Mexico’s domestic ferrous scrap prices decreased across the North and Central regions but remained unchanged in Bajío.
  • Prices have started to fall in the North as some mills from that region have begun importing scrap because of which more material is available in the domestic ferrous market, according to market participants. 
  • In North Mexico, the weekly Davis Indexes for #1 HMS, P&S 5ft, and shredded fell by MXN67/mt delivered Mexico consumer, respectively. Machine shop turnings declined by MXN200/mt delivered, and #1 busheling decreased by MXN17/mt delivered.
  • In Bajío, the weekly Davis Indexes for #1 HMS, P&S 5ft, shredded, machine shop turnings, and #1 busheling remained unchanged.
  • In Central Mexico, the weekly Davis Indexes for #1 HMS, P&S 5ft, shredded, machine shop turnings, and #1 busheling fell by MXN250/mt delivered Mexico consumer, respectively. ($1=MXN19.94)

 

Japan  

  • Tokyo Steel raises domestic scrap bids by JPY6,000/mt ($57.23) at Utsunomiya works, effective Feb 13. Revised H2 price delivered Utsunomiya at JPY35,000/mt ($334/mt). Bids for the other four works remain unchanged.
  • Shortage of domestic scrap in Japan and the rise in Kanto tender prompted exporters to raise offers. An anticipated rise in scrap demand post-holidays in South Korea, Taiwan, and Vietnam supported offer prices. Most mills were away this week after limited buying for stocking ahead of annual maintenance. 
  • Japan’s monthly Kanto Tetsugen export tender on Feb 10 concluded with the only winning bid for 15,000mt of #2 HMS at JPY39,271/mt ($375/mt) fas Tokyo bay. The bid was JPY5,480/mt or $52/mt down from January’s average of JPY44,751/mt ($430/mt) fas but was still higher than what the market expected. Japanese scrap prices have rebounded by JPY5,000-6000/mt from the first week of February.
  • Traders raised offers for HS by $10/mt cfr this week as raw material prices rose in China. Australian iron ore price for 62fe rose by $3/mt on Monday. Bids for Japanese HS rose by $40-50/mt cfr but no trades were heard. Chinese mills are expected to increase purchase volumes post-holidays. China’s HRC manufacturers were cautious of a possible cut in rebates to 8-9pc from 13pc to curb steel output, which may further pressure raw material prices in China.
  • The index for P&S 5ft (small bulk) China port rose by $49/mt cfr from the prior week on raised bids. The weekly Davis Index for Japanese #2 HMS rose by JPY2,250/mt fas, while the index for the grade on fob basis rose by JPY3,250/mt fob Japan. 
  • After Kanto bids, traders raised offers for #2 HMS by JPY4,000/mt from the last deals of Hyundai and Dongkuk at JPY35,000/mt in the prior week.
  • Bids for Japanese #1 busheling (Shindachi) rose by JPY2,500/mt fob from a week ago. The weekly index for the grade rose by JPY1,875/mt fas Japan. Most Asian mills limited buying this week as offers rose more than their expectations and preferred to wait till the end of holidays. 
  • The weekly Davis Index for HS and shredded, Wednesday, rose by JPY3,750/mt fas, respectively. Limited trades were heard this week as most mills waited for the results of Kanto tender. 
  • Offers for HMS 1&2 (50:50) rose by $20/mt cfr Vietnam this week. After Kanto bids, the index for the grade rose by $11/mt cfr Haiphong. Buyers, cautious of rising prices, resisted offers.
  • In Taiwan, the index for Japanese HMS 1&2 (50:50) rose by $13/mt cfr. Offers rose to $385-390/mt cfr on Wednesday, up by $20/mt from the prior week.
  • Buyers from Vietnam, Korea, and Taiwan have either paused trades or are negotiating with exporters. Most buyers are expected to stay away from the market amid Lunar New Year holidays. As expected by market participants, the decline in Japanese scrap prices was short-lived. Prices are expected to rise in February amid a global shortage of scrap and increased finished steel demand post-Chinese New Year holidays.
  • The largest steel plate consumer sector in Japan, the shipbuilding industry, has shown robust recovery in January. In January, new ship export orders in Japan surged by 62.2pc from the prior year to 1.21mn gt. There were 31 ships ordered for exports in January versus 18 in the same period of last year, according to the Japan Ship Exporters Association. ($1=JPY105)

 

South Korea  

  • South Korean domestic scrap prices trended down this week. Suppliers reduced offer prices to match lower bids placed by mills before the holidays. In the import market, no deals were heard as Japanese exporters raised offer prices.
  • The Davis Index for domestic Heavy A fell by KRW20,000/mt delivered Incheon and Pohang, respectively. Mills reduced their bids for domestic scrap amid scheduled maintenance, said traders. Most mills have enough inventory for the month. But the decline is expected to be for a short while as domestic supplies remain tight. 
  • The weekly Davis Index for domestic Light A fell by KRW20,000/mt delivered Pohang mill. Demand will fall until Lunar New Year, said, importers.
  • A few buyers raised bids to secure material at current prices in anticipation of a further rise in global scrap prices post-holidays. Many steel mills are under annual maintenance and will resume scrap buying in March.
  • The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, rose by $2/mt cfr South Korea from the prior week. Bids increased by $5/mt cfr, while offers were heard at $370/mt. No deals were heard this week, but some trades concluded at $355/mt cfr earlier last week.
  • The weekly Davis Indexes for P&S 5ft and #1 HMS, Wednesday, rose by $8/mt and $7/mt cfr South Korea, respectively. The index for shredded rose by $6/mt from the prior week. Traders anticipate a further rise in Japanese export prices after Kanto Tender. ($1=KRW1,123)

 

Taiwan  

  • Mills in Taiwan limited containerised scrap purchase amid holidays and annual maintenance. Imported ferrous scrap offers to Asian destinations rose on tight supply and rising demand from Turkey and China. 
  • The Davis Index for containerized US-origin HMS 1&2 (80:20), Thursday, held unchanged from the prior day as US-based exporters kept offers firm at $370-375/mt cfr Taiwan in anticipation of a rise in finished steel demand after holidays. The index rose by $1/mt from the prior week (Feb 4). 
  • Taiwanese mills may negotiate for US and Japanese scrap post-holidays. Buyers said mills have lowered booking volumes and have opted to wait for price direction.
  • The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling rose by $8/mt, $4/mt, $6/mt and $3/mt cfr, respectively. Mills have turned cautious amid a rise in offers for Japanese ferrous scrap after Kanto Tender and a $12.4/mt rise in Turkish purchase price on Thursday from the prior Friday.
  • Mills are tracking Japanese export and South Korean import price trends to gauge price direction post-Kanto Tender. 
  • The weekly Davis Indexes for domestic HMS 1&2 (80:20) fell by TWD400/mt delivered South Taiwan and North Taiwan mills, respectively, this week. Most mills reduced buying due to maintenance and uncertainty in ferrous scrap prices. ($1=TWD28)

 

China

  • In China, Shagang Steel’s ferrous scrap purchase prices are unchanged from the prior week. Chinese HRC manufacturers were cautious of a possible cut in rebates to 8-9pc from 13pc to curb steel output. HRC prices rose by $10/mt this week in anticipation of rising demand post-holidays and due to pre-holidays stocking.
  • US and Japanese exporters refused to reduce offer prices in anticipation of a rise in demand from Asian countries after the Lunar New Year holidays. With iron ore 62 Fe price, Thursday, rising by $13/mt to $165/mt cfr China from the prior week, offers for Japanese HS rose by $10/mt. Few cfr deals for trial quantities of P&S 5ft 3,000mt heard this week from Singapore and South Korea.
  • Q235 150mm square billets in Tangshan fell by CNY10/mt this week due to high inventory. Many mills are expected to raise billet prices post-holidays with an uptick in iron ore prices. Steel prices are likely to stabilize after the Chinese New Year as demand rises and inventories fall.
  • Traders overseas expect Chinese demand for ferrous scrap to sustain in February after the Lunar New Year holidays as steel mills start restocking. Japanese HS scrap offers rose to $440-450/mt, Tuesday, up by $55-60/mt from the prior week. Importers indicated that scrap shortage in Japan and anticipation of a rise in finished steel demand post-holidays made exporters raise offers this week. No small bulk deals heard this week, but Japanese exporters expect an increase in purchase after New Year.
  • The weekly Davis Index for the HMS 1&2 (80:20) settled flat delivered mill on Tuesday from the prior day, up by $2/mt from the week prior due to the appreciation of Chinese yuan against the US dollar. Deals for P&S 5ft heard at CNY3,800/mt this week as few buyers stocked material. The market was bearish due to limited buying ahead of holidays, cold weather, and rising COVID-19 cases, besides restriction on movement and production cuts to control pollution. 
  • Production of automobiles in China reached 2.38mn, up 34.6pc from the previous year, but down 15.9pc from the previous month. Sales in January reported at 2,503mn units, up 29.5pc from 2020 and down 11.6pc from December, according to data released by the China Association of Automobile Manufacturers (CAAM). ($1=CNY6.5)

 

Vietnam 

  • Like Taiwan, Vietnamese mills stayed away from any purchase this week due to holidays and volatility in global scrap prices. Due to a shortage of containers, Vietnamese mills preferred negotiating for bulk scrap from Japan and Russia before holidays. Higher offers have forced mills to wait till prices stabilise, said traders indicating that mills could resume purchases post-holidays in anticipation of a rise in finished steel demand.
  • In the containers market, the weekly index for US-origin HMS 1&2 (80:20) Thursday settled up by $7/mt cfr Vietnam from the prior week. While Vietnamese mills hold bids at $375-380/mt. Market participants expect prices to rise as exporters refused to budge.
  • The weekly index for P&S 5ft and shredded rose by $3/mt and $4/mt, cfr, respectively, on Thursday, amid rising offers.
  • In bulk, Japanese #2 HMS offers heard at JPY40,000/mt ($382/mt) fob on Wednesday from JPY35,000/mt in the prior week. 
  • The weekly Davis Index for HMS 1&2 (80:20) was flat this week delivered South Vietnam inclusive of taxes. Sluggish finished steel demand impacted ferrous scrap prices in Vietnam. Scrap exporters have opted to wait until holidays, while mills have limited purchase and are expected to increase buying only after Lunar New Year. 
  • A few deals for busheling heard at VND9,200,000/mt delivered South Vietnam on Tuesday.
  • In bulk, offers for Japanese #2 HMS were flat at $370-380/mt cfr on Tuesday. ($1=VND23,184)

Indonesia

  • Indonesian mills stayed away from the imported scrap market due to price volatility. Many yards that have registration expiry in March avoided offers to Indonesia, thereby limiting trade. Buyers are negotiating deals from Hong Kong, Australia, Singapore, and the US but are wary of rising prices.
  • Buyers expect ferrous scrap prices to rise further post-Lunar New Year. The weekly Davis Index for HMS 1&2 (80:20) rose by $8/mt cfr Jakarta. Offers rose by $15-20/mt cfr Jakarta on Thursday from the prior week. Mills preferred ferrous scrap from Malaysia and Hong Kong for immediate requirements and to avoid delays in shipment.
  • The indexes for P&S 5ft and shredded rose by $10/mt and $7/mt cfr Jakarta, respectively. Offers for UK-origin P&S 5ft rose $5/mt from the prior week. 
  • The weekly Davis Index for #1 busheling rose by $6/mt cfr. Offers for Malaysian-origin busheling heard at $430/mt cfr on Thursday, up by $5/mt from the prior week. Limited deals heard for the grade as most mills preferred to wait amid subdued finished steel demand.

 

Thailand

  • The weekly Davis Index for domestic HMS 1&2 (80:20) settled flat delivered Rayong mill inclusive of taxes, amid limited deals and weak global cues. Steel mills are expected to raise bids as they restock scrap inventory in anticipation of a rise in steel demand in mid-February. Several infrastructure projects are expected to be delayed following a rise in COVID-19 cases.
  • Container shortage and vessel delays added to the woes of steel mills interested in short transit imports. Deals for HMS 1, P&S heard at THB12,400/mt and THB12,600/mt, respectively, on Monday. Thai steelmakers expect prices for HMS 1&2 (80:20) to remain unchanged until Lunar New Year amid limited supply.
  • Billet offers were at $545-550/mt cfr Thailand from the Russian mills, but buyers preferred to wait until the holidays to gain clarity on price direction. ($1=THB30)

 

Malaysia 

  • The weekly indexes for HMS 1&2 (80:20) fell by MYR40/mt ($26/mt) and MYR35/mt to delivered western mills and eastern mills inclusive of taxes, respectively.
  • Malaysian steelmakers were cautious amid an extension of lockdown in Malaysia. Trades slowed with offers for US-origin HMS 1&2 (80:20) in FEU at $380/mt and limited bids at $360/mt. Traders expect an MYR50/mt fall next week on weak demand. Importers are closely watching Turkish and Chinese scrap purchases ahead of new bookings. ($1=MYR4)

 

India 

  • Imported scrap prices in India increased in sync with global cues. Small mills preferred competitively-priced domestic scrap but if local supplies tighten, they would be forced to buy imports to refill inventories. 
  • The daily Davis Index for containerized shredded, Friday cfr Nhava Sheva rose $3.21/mt. The index rose $8.21/mt from the prior Friday (Feb 5). Active booking is expected once Chinese steel mills turn active post-Lunar New Year break and provide better clarity on scrap and steel prices said importers. 
  • On Friday, Shipbreaking scrap in Alang and ingot prices in Mandi Gobindgarh dropped by Rs400-500/mt for the first time since Feb 5. Indian steel prices could be pressurized by claims of alleged prices cartelisation by steelmakers. India’s anti-monopoly regulatory is probing an alleged cartel in the steel sector.
  • Dubai-origin HMS #1 and P&S on Friday traded at $375-380/mt cfr Nhava Sheva. The daily Davis Index for UAE-origin HMS 1&2 (80:20), Friday, rose $6/mt.
  • The daily Davis Index for US-origin HMS 1&2 (80:20), Friday, surged by $6.75/mt. Trades for grades like busheling and P&S remain halted. The indexes for the grade rose $7/mt and $12/mt on high offers. 
  • Chinese mills are expected to resume imports of billet from the SE Asia and Indian market, which could further boost appetite for ferrous scrap purchases by induction furnaces in India. 
  • Following a rise in domestic billet prices, blast furnace mills upped billet offers by $10-15/mt fob India from the prior deals. This has offered strength to SE Asian billet prices with Philippines-based mills expected to be back in the market soon. ($1=Rs72.92)

 

India domestic

  • Domestic ferrous scrap prices in India have started to rebound since late last week. A rise in steel prices has supported the recovery to a large extent.
  • In Mumbai, the index for HMS 1&2 (80:20) rose by Rs750/mt delivered mill from last Friday, while in Mandi Gobindgarh, it rose by Rs3,200/mt delivered mill in a week. Availability of ferrous scrap has dropped as infrastructure construction projects, as well as demolition activities, remain stalled. The short supply is also a result of mills focusing more on domestic scrap purchases over imported material through January.

 

Pakistan  

  • Pakistani mills were slow in the seaborne scrap market on a sharp rebound in offers. 
  • Most supplier yards refused to lower prices citing a decrease in scrap collection rates and elevated freight rates. 
  • The daily Davis Index for containerized shredded, Friday, rose by $3.21/mt cfr Port Qasim. Prices increased by $14.46/mt from the prior week. Offers jumped after the resumption of Turkish bulk purchases.
  •  
  • The daily index for US-origin HMS 1&2 (80:20) was up by $3.75/mt. Rebound in scrap prices in the US fas market by min $10-15/mt pushed offers up in South Asian markets. 
  • Offers from the UAE rose to match global levels. #1 HMS and P&S from UAE were at $390-400/mt cfr Port Qasim. The daily Davis Index for UAE-origin HMS 1&2 (80:20), Friday, rose by $7/mt cfr Port Qasim.
  • The weekly Davis Indexes for P&S 5ft and #1 busheling settled cfr Port Qasim, up by $4/mt and down $2/mt, respectively. 
  • Domestic scrap and billet rebounded keeping sales slow. Weak demand for rebar held mills back. The Davis Index for G-60 billet settled unchanged from Feb. The weekly index for domestic Bala billet rose by PKR750/mt ex-works.
  • The weekly Davis Index for rebar dropped by PKR2,500/mt ex-works Karachi and by PKR2,000/mt in Punjab.
  • The weekly index for Art Pure Q toke scrap equivalent to a mix of HMS and P&S Friday increased by PKR1,000/mt ($8/mt) ex-yard Lahore. The weekly index for Pure Q Toke equivalent to shredded increased by PKR1,000/mt ex-yards. 
  • Small mills using ship plates to produce rebar could not maintain their profit margins with the market unable to absorb the rise in rebar prices. ($1=PKR158.9)

 

Bangladesh

  • Containerized imported ferrous scrap trades in Bangladesh slowed as only a few sellers were willing to match offer prices. 
  • Trading slowed as mills were unsure of firm finished steel prices through Q1 2021. Inquiries remained high indicating buyers would be back next week, with expectations of an uptick in prices post-Chinese New Year.
  • The daily Davis Index for containerized shredded, Friday, cfr Chattogram, was up by $3.75/mt from Thursday, but down by $9.46/mt from Feb 5. 
  • Mills preferred HMS and P&S over high-priced busheling and shredded scrap. The daily Davis Indexes for containerized HMS 1&2 (80:20) from the US and Latin America cfr Chattogram, up by $5/mt as suppliers stayed away from seaborne trade amid strong domestic demand and prices. 
  • UK yards were away from negotiations on re-lockdowns while freight charges have touched $88-90/mt on the UK to Bangladesh route.
  • The index for P&S was up by $4/mt; while that for #1 busheling was cfr Chattogram, up by $5/mt.
  • In the bulk market, inquiries and negotiations increased with trades expected to materialise next week as buying in containers could turn costlier than bulk for same volumes. 
  • The weekly index for ship scrap equivalent to P&S rose by BDT500/mt ($7/mt) ex-works. Prices of ship plates also rebounded to BDT44,500-45,000/mt ex-yard. 
  • Domestic billet traded at BDT50,000/mt ex-works Chattogram, with its index up by BDT1,000/mt. The index for large steelmakers’ rebar, Friday, rose BDT250/mt to BDT65,000/mt ex-works. Mills canceled discounts amid rising imported scrap prices and intend to hike steel prices in the coming days. ($1=BDT84.74)

 

Metallics

 

CIS 

  • The weekly Davis Index for CIS basic pig iron increased by $10/mt fob Black Sea on Friday as Turkey and Italy resumed bookings.
  • Demand improved as buyers became active after prices reached a bottom last week but began trending up in the global ferrous scrap market this week. In two deals in Turkey this week, a Russian supplier sold 5,000mt of basic pig iron at $510/mt fob Black Sea and the same volume of semi-nodular pig iron at $525/mt fob.
  • The weekly Davis Index for CIS pig iron in Italy increased by $7/mt on Friday as importers returned to the market. A deal at $523/mt cfr for approximately 5,000mt of Ukrainian material was reported after negotiations.
  • No new transactions were reported in the US this week, while a large Russian exporter sold 70,000-75,000mt of pig iron at $510/mt cfr New Orleans last week. The cargo is due to be shipped from the Baltic Sea at the beginning of May. 

 

US

  • The weekly Davis Index for basic pig iron (BPI) moved down by $8/mt cfr New Orleans port on Thursday as activity paused amid weakening demand. The latest offers and bids have lowered modestly, and the next deals may be priced near or just under prior sales levels.
  • New BPI transactions were not heard this week, following last week’s sale from India at approximately $465/mt fob, which translates to $500-510/mt cfr Nola. Other recent deals were reported at $500-510/mt cfr Nola for lowered grade material from Southern Brazil containing elevated, 0.15pc phosphorus. The standard grade that holds closer to 0.10pc of the chemical was being offered at $510-530/mt cfr Nola on Tuesday.
  • Producers in the CIS are targeting $520-525/mt cfr Nola for the next BPI sales while buyers are aiming for $515-520/mt cfr Nola. The market also awaits more clarity on price levels and industry participants’ outlook on the upward or downward movement of metallic imports and domestic ferrous scrap prices, though most lean toward an upturn.
  • The Davis Index for nodular pig iron (NPI) imports fell by $10/mt cfr Nola. The material’s availability remains tight and activity is low, but the latest offers and bids heard for NPI are at $560-580/mt cfr Nola with delivery entailing May or later.
  • The weekly Davis Index for US hot briquetted iron (HBI) imports decreased by $22/mt cfr Nola. New bids or offers have not been heard recently, however, the price estimation for the material has been modified based on price movements for similar grades along with consumer perception and interest levels.

 

India

  • In a week, the indexes for Sponge iron rose by Rs1,200/mt del Mandi and Rs1,850/mt del Mumbai mill. Prices rose fuelled by a rise in iron ore prices. In the international market, iron ore prices increased by $15/mt since February 2. 
  • Sponge iron prices remain unviable for mills in India, which focussed on ferrous scrap instead. Amid a lack of demand in the domestic market, Sponge iron producers looked to export material. Producers raised offers for Sponge iron buyers in Bangladesh by $10-15/mt cpt Benapole in a week.

 

India semi-finished and finished steel

  • The daily Davis Index for billet in Mumbai surge by Rs1,500/mt ($20.6/mt) from the previous Friday amid a rise in local scrap prices along with tight supply. However, mills increased rebar offers by Rs500/mt, but demand was moderate at higher prices. 
  • In Raipur, the daily index for billet up by Rs800/mt ($11/mt) from the previous Friday following a rise in rebar prices. The daily index for rebar rose Rs1,000/mt ($13.75/mt) amid improved sales.
  • In Mandi Gobindgarh, the daily index for ingot rose Rs800/mt from the prior Friday in-line with local scrap prices.
  • In Gujarat, the bi-weekly index for billet surge by Rs1,500/mt on Thursday from the prior week on account of a rise in rebar prices and improved demand.
  • The bi-weekly index for billet in Chennai was flat on Thursday from the prior week amid limited trade. ($1=Rs72.7) 

 

Shipbreaking 

  • Shipbreaking prices dropped on Friday amid tepid demand from rolling mills in Mandi Gobindgarh and Gujarat. However, the daily Davis Index for 8Ani rose by Rs1,300/mt ($17.87/mt) from the prior week as the demand revived late in the week ending its downtrend.
  •  
  • The index for 0.5kg and 1kg plates rose by Rs1,700/mt ex-Alang, respectively. 
  • The Davis Index for HMS attachments and Melting rose by Rs1,650/mt each amid limited activity. Steel prices in India are pressurised amid allegation of price cartel among steelmakers. Uncertainty around domestic finished steel price has turned scrap buyers cautious.
  • ($1=Rs72.73) 

 

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