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Ferrous market update: Jan 11-15

Ferrous Market Update 01/15/2021

 

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) decreased by $7.08/mt on Friday as mills achieved lower prices in new bookings.
  • Turkish demand for imported ferrous scrap softened, though two mills purchased some tonnages at lower prices.
  • A Karadeniz-based producer bought a mixed composition cargo at around $465/mt cfr from Denmark. According to some sources, however, this transaction was only an addition to the tonnages (around 12,000mt) to a previous deal between the buyer and seller.
  • An Iskenderun-based mill purchased two short-sea cargoes from Europe early in the week. The first deal was closed at $447/mt cfr for HMS 1&2 (80:20), while a second contract was signed at an average price of $442/mt cfr for shredded scrap and P&S 5ft.
  • Turkish ferrous scrap importers will insist on lower prices next week, and some suppliers are expected to accept their terms. However, the number of offers will decrease as some exporters have already switched to alternative outlets. For example, several recyclers from the UK and Belgium were heard to have sold to Egypt this week. A Scandinavian supplier reached an agreement with a buyer from South Europe at €380/mt cfr for HMS 1&2 (80:20) and €390/mt cfr for P&S 5 ft.
  • Most US scrap suppliers may simply withdraw their offers, which are no lower than $480/mt cfr for HMS 1&2 (80:20), to Turkey.
  • The daily domestic spot rebar prices in Turkey decreased by TRY30/mt ($4/mt) on Friday, while the daily exported rebar prices remained unchanged. According to market participants, there is some demand for Turkish rebar on export, especially in Asia, where Turkish mills are negotiating and targeting higher prices. ($1=TRY7.45) (€1=$1.20)

 

Turkey domestic

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey declined by TRY34/mt ($4.50/mt) on Monday after most mills cut their purchase prices on Jan 7-9.
  • Purchase prices for shipbreaking scrap in the Izmir region remained unchanged over the week. ($1=TRY7.49)

 

CIS

  • The weekly Davis Index for A3 scrap rose by $13/mt fob Baltic Sea basin and by $9/mt fob Black Sea basin on Monday as exporters targeted higher prices.
  • Russian ferrous scrap suppliers came back after the holidays and increased their offers to Turkey after considering recent bookings from the US and Europe where US-origin HMS 1&2 (80:20) changed hands at $481-482/mt cfr Turkey in the second half of last week.
  • Recyclers from St Petersburg and Rostov-on-Don were asking $480-485/mt cfr Turkey for A3 material while exporters from Murmansk and Arkhangelsk offered HMS 1&2 (95:5) at $500/mt cfr.
  • Collection prices in Russia went up with the weekly Davis Index for A3 scrap rising by RUB475/mt ($6/mt) delivered St Petersburg dock and by RUB1,800/mt ($24/mt) delivered Rostov-on-Don dock. ($1 = RUB74.57)

 

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region increased by €8/mt ($10/mt) on Tuesday after active sales.
  • European ferrous scrap suppliers raised collection prices amid recent transactions in Turkey. According to market participants, several recyclers (mainly from the Netherlands) sold at least five deep-sea cargoes to Turkey at the beginning of January, including HMS 1&2 (75:25) and HMS 1&2 (80:20) at $471.50-476/mt cfr.
  • Negotiations paused this week because Turkish mills switched to steel product sales. Some European scrap suppliers believe that Turkish steelmakers are already fully booked for February shipment. (€1 = $1.22)

 

UK dockside

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices jumped by £19-20/mt ($26-27/mt) delivered dockside on Tuesday.
  • UK dockside ferrous scrap purchase prices surged higher over the past week, as merchant suppliers caught on to the disparity between local rates and developments in major trade routes.
  • One UK-based trader noted that merchant suppliers were now aware of deep-sea exporters’ healthy margins and were content to sit on the material until dockside buyers lifted prices.
  • As a result, UK dockside purchase prices are now playing catch up with developments in Turkish HMS 1&2 (80:20) import benchmarks and will gnaw away at relatively wide bulk processing margins.
  • The weekly indexes for north and south UK OA (Plate & Structural) surged by £32-33/mt over the same period on Jan 12 and the indices for north and south UK 5A/5C (frag feed) ferrous scrap soared by £34/mt, delivered dockside. (£1=$1.36)

 

Spain

  • Davis Index’s weekly northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices jumped by €4/mt ($5/mt) cfr, respectively, on Friday.
  • Spanish ferrous scrap import prices may have peaked over the past week, with suppliers only able to secure €4/mt increases, despite initially offering HMS 1&2 (80:20) cargoes at closer to €365/mt.
  • Mill buyers leveraged rumors that deep-sea deals to Turkey for HMS 1&2 (80:20) had been struck at significantly lower prices earlier in the week ranging from $447-465/mt cfr.
  • At the same time, EU dockside collection prices were heard to have also softened by up to €20/mt towards the latter end of this week.
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices were unchanged from the prior week. (€1=$1.21)

 

US dockside

  • The US East Coast and Houston dock collection prices for ferrous scrap continued to climb, amid strong export demand and healthy domestic markets.
  • January’s domestic activity wrapped up after scrap prices were driven $90-100/gt above December’s levels, with some lower prices for certain secondary grades.
  • Export yard buying prices for #1 HMS on the East Coast averaged close to $400-410/gt for local tons on Tuesday, rising by about $30-40/gt for most sellers compared with last week. The prices covered a full range of deals between $390-415/gt. East Coast dock collections for #1 HMS were valued at $245/gt on November 17, 2020, and have grown by approximately $160/gt within the past 60 days.
  • Dockside price points are projected to rise further in the near term. The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) was $482.11/mt cfr Monday while further US offers are at around $485-490/mt cfr. The ferrous export market’s price levels during the week were up by about $55/mt from December 15, 2020.
  • In Boston, the weekly Davis Index for export yard #1 HMS climbed by $37/gt delivered and P&S 5ft jumped by $35/gt delivered Boston dock. Shredder feed rose by $39/gt delivered.
  • The weekly Davis Index for export yard buying prices in New York rose for #1 HMS, P&S 5ft, and shredder feed by $33/gt, $32/gt, and $40/gt, respectively delivered New York docks.
  • In Philadelphia, the Davis Index for export yard collection prices of #1 HMS increased by $31/gt delivered, P&S 5ft went up by $30/gt delivered, and shredder feed rose by $40/gt delivered.
  • In Houston, the weekly Davis Index rose by $10/gt for #1 HMS while P&S 5ft increased by $8/gt delivered and shredder feed index increased by $6/gt delivered.
  • Ferrous scrap collection prices in the northern docks on the US West Coast continued to climb while those in Los Angeles were unchanged. Portland and San Francisco competed more directly with US domestic mills for scrap volumes during the early January trading period.
  • Seaborne scrap offers continued firm globally, encouraging mills to focus on domestic sources. Although global scrap prices are expected to remain strong through 2021 on high demand and tight supply, small corrections are expected in the next few months.
  • Domestic scrap prices have risen in Thailand, Vietnam, and South Korea but have held in Taiwan. However, with mills focusing on domestic sources on higher imported scrap deals, the inventories in Taiwan are expected to tighten.
  • The higher Japanese-supplier bids are supporting US-based scrap sellers and the short-term outlook is reinforced by the expectation that Chinese mills will continue sourcing scrap from Japan and limit volumes for other buyers. US-origin scrap deals to China are under negotiations and could maintain firm bulk scrap prices for all other Asian buyers.
  • In Portland, the weekly Davis Indexes for #1 HMS and P&S 5ft rose by $29/gt on Tuesday. Shredder feed increased by $34/gt delivered. Docks in the Pacific Northwest found themselves competing with regional mills that increased prices during the January scrap trade.
  • The San Francisco Davis Indexes gained again after a substantial leap in the first week in January with #1 HMS, P&S 5ft, and shredder feed increasing by $14/gt, $13/gt, and $33/gt, respectively, on a delivered docks basis.
  • The weekly Davis Indexes for dock prices in Los Angeles remained unchanged for #1 HMS and P&S 5ft, while shredder feed inched up by $3/gt delivered.

 

US containers

  • US containerized scrap prices declined on Thursday after 14 consecutive weeks of increases that began in early October.
  • Scrap prices on the West Coast and East Coast decelerated after a peak late last week. The high point for containerized prices was in tandem with the historic January US domestic ferrous trading week that saw prices surge by another $55-110/gt against deals concluded in December.
  • This month’s domestic trading encountered the reverse of December’s trend with transactions beginning higher but declining towards the end of the trading week. The expectation of a $10-20/gt downward trend in February trading along with buyer resistance from export markets placed pressure on containerized prices.
  • Bids began to decline on Jan 6 but started taking shape in reduced offers and deals in the past few days. Market participants on both coasts note reduced buyer interest or the absence of the usual players. Some buyers on the East Coast have noted deals at deep discounts on P&S 5ft, #1 busheling, and HMS 1&2 (80:20). Shredded deals, however, remained stronger than P&S 5ft that had been trading in sync.
  • Container export yards are reportedly panicking due to the softer demand and huge inventories against limited container availability over the past month, which has restrained fulfillment for some interested buyers. The upcoming Chinese Lunar New Year is also adding to the pause in transactions. Buyers are adopting a wait and see approach on the expectation of further short-term price declines.
  • Japanese export offer prices have remained high on Chinese demand expectations. On the other hand, Chinese mills continue looking for scrap from the US, Japan, and Australia and are not engaging in deals at excessively high offer prices.
  • Asian buyers are contending with weaker-than-expected demand in domestic and export markets and are stepping back to assess the remainder of Q1 and Q2 2021. Mills are actively lowering bids for imported scrap, diverting attention to the domestic scrap market, or withholding container or bulk buys pending further market clarity.
  • The weekly Davis Indexes in New York slipped by $3/mt fas for #1 busheling. HMS 1&2 (80:20) and machine turnings both decreased by $6/mt fas and P&S 5ft and shredded dropped by $9/mt and $1/mt fas, respectively.
  • In Los Angeles, the weekly Davis Indexes decreased for #1 busheling by $7/mt fas, while HMS 1&2 (80:20), P&S 5ft, and shredded all dropped by $10/mt fas.
  • In San Francisco, the indexes declined by $5/mt fas for #1 busheling and P&S 5ft, and shredded and HMS 1&2 (80:20) fell by $8/mt fas.
  • The Davis Indexes in Seattle for #1 busheling ticked down by $1/mt fas while HMS 1&2 (80:20) P&S 5ft, and shredded fell by $7/mt fas, $9/mt fas, and $8/mt fas, respectively.
  • Several market participants voiced the expectation that Turkish mills will correlate movements of upcoming bids and deals and, therefore, most likely trade imported scrap down $10-20/mt against recent deals.
  • The downward trend is further reinforced by contractions in dock prices in the EU heard on Thursday and reduction of dock buying prices from $400/gt to $360-380/gt on HMS 1&2 (80:20) in areas such as Houston.

 

Mexico

  • Mexico’s domestic ferrous scrap prices rose further in the Bajío and Central regions amid a continuing trend of demand outpacing supply but remained unchanged in the North.
  • Another $10/mt rise is expected in scrap prices in both these regions next week, a market participant told Davis Index, adding that there is an acute shortage of prime scrap in the Central area.
  • Mexican scrap consumption is expected to increase by 15-20pc in H1 2021 after China announced plans to resume importing ferrous scrap. As a result, #1 busheling’s demand is expected to skyrocket with both Mexican and southern US mills competing to get scrap, a market participant said.
  • The weekly Davis Indexes for #1 HMS, P&S 5ft, #1 busheling, shredded, and machine shop turnings all rose by MXN200/mt delivered Mexico consumer in Bajío.
  • The weekly Davis Indexes in Central Mexico rose by MXN200/mt delivered for #1 HMS, P&S 5ft, shredded, and machine shop turnings. The weekly index for #1 busheling rose by MXN300/mt.
  • In North Mexico, the weekly Davis Indexes for all grades remained unchanged. ($1=MXN19.78)

 

Japan  

  • Domestic and export ferrous scrap prices in Japan declined from a week ago. Sluggish finished steel demand in most Asian domestic markets kept buyers away from seaborne ferrous scrap markets.
  • Tokyo Steel reduced domestic scrap prices at Utsunomiya works in Kanto by JPY1,000/mt ($9.6/mt). The bids for #2 HMS were revised at JPY42,000/mt ($404/mt) del Utsunomiya on Wednesday while prices for other works remained unchanged.
  • On Jan 13, 15,000mt of #2 HMS was sold $58/mt higher than December in the monthly Kanto export tender, through a single winning bid for February fas shipment.
  • After some initial deals in early January, Chinese mills have stayed away from booking for Japan-origin scrap against sellers’ anticipation. Rising COVID-19 cases in Hebei, a major steel-producing region, and cold weather in the northern region impacted trading. Construction activity has dipped, and mills inventories are rising.
  • The decline in Japanese scrap prices could be short-lived with a global shortage of scrap and an increase in finished steel demand likely to lift prices in February said traders.
  • The weekly Davis Index for Japanese #2 HMS fell by JPY1,250/mt fas. In the export market, the weekly index for the grade fell by JPY675/mt fob Japan with bids at JPY43,000/mt fob. A deal for 30,000mt of #2 HMS by a South Korean mill was heard at JPY43,000/mt fob on the prior Friday.
  • Bids for Japanese #1 busheling (Shindachi) fell to JPY46,000/mt fob from a week ago. The weekly index for the grade fell by JPY1,000/mt fas and by JPY1,250/mt fob Japan. Mills lowered their bids as they hope for a further decline in prices.
  • The weekly Davis Index for HS and shredded fell by JPY1,375/mt and JPY500/mt to fas, respectively.
  • Deals for HS and busheling cfr Korea heard on Friday.
  • In the Kanto region, the Davis Index for #1 HMS fell by JPY950/mt fas from the prior week and by JPY675/mt fob Japan.
  • Deals for HMS 1&2 (50:50) were heard at $460-463/mt cfr Taiwan this week, and the index for the grade fell by $1/mt cfr Taiwan on Tuesday.
  • In Vietnam, the index for Japanese HMS 1&2 (50:50) fell by $5/mt cfr from the prior week on bids declining by an equal amount to $460/mt cfr.
  • Taiwanese and South Korean buyers lowered their bids for US-origin material by $10/mt and $5/mt, respectively, after Turkish mills lowered prices for seaborne scrap. Few buyers switched to Japanese scrap instead of US-origins. ($1=JPY103.70)

 

South Korea  

  • South Korean domestic ferrous scrap prices trended up this week with mills raising domestic bids amid a shortage of containers and vessel delays.
  • Korean mills delayed Japanese scrap bookings due to rising offers after a deal for 30,000mt of #2 HMS was heard at JPY43,000/mt fob Japan on prior Friday.
  • The Davis Index for domestic Heavy A rose by KRW15,000/mt ($13.65/mt) each for delivered Incheon and Pohang mills. Due to a limited supply of domestic scrap, traders expect mills to raise bids by another KRW15,000/mt.
  • The weekly Davis Index for domestic Light A rose by KRW12,500/mt delivered Pohang mill. Trades for the grade were reported at KRW420,000-425,000/mt on Monday and Tuesday. Many domestic scrap suppliers held on to material in hopes of a further uptick in prices.
  • Prices of containerized imported ferrous scrap fell pressured by limited finished steel demand in South Korea. Many mills lowered bids in line with the fall in raw material prices in other Asian countries. The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, fell $5/mt cfr South Korea from the prior week. Offers were heard at $440/mt cfr.
  • The weekly Davis Indexes for P&S 5ft and #1 HMS, Wednesday, dropped by $5/mt and $10/mt cfr South Korea, respectively, while shredded remained unchanged from the prior week. Shred prices remained firm this week on rising offers and a global shortage due to lockdowns in European countries. Other grades fell amid lower bids and sluggish finished steel demand.
  • Deals for Japanese HS heard at JPY49,000/mt cfr and #1 Busheling at JPY49,500/mt cfr on Friday. Bids for Japanese scrap fell by JPY500-1,000/mt this week. ($1=KRW1,098)

 

Taiwan  

  • The Davis Index for containerized US-origin HMS 1&2 (80:20) Thursday fell by $5/mt from the prior day and by $16/mt from the prior Friday. Taiwanese buyers claimed the current offer prices are unviable. Limited deals were heard at $435/mt this week with mills expecting a fall in global ferrous scrap prices in the coming days.
  • The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling fell by $15/mt, $12/mt, $14/mt and $15/mt cfr, respectively. Amid limited offers at high levels, only a few deals were heard this week. Taiwanese mills are closely tracking Japanese scrap purchases by Chinese buyers as they aim to negotiate for Japanese scrap at lower bids.
  • Some Taiwanese mills bid for HMS 1&2 (50:50) $10/mt lower than last week but no deals were heard. With no further buying from China, after the initial deals in early January, importers expect a slowdown in Chinese buying due to cold weather and rising Covid-19 cases. Buyers said the difference of $60-70/mt between domestic and seaborne scrap cfr China is making imports unattractive.
  • In bulk, few cfr Taiwan deals for Japanese #1 Busheling were heard. Taiwanese and Korean mills have started negotiating trades for Japanese scrap after evaluating the Kanto tender.
  • Few mills sought South American HMS 1&2 (80:20) for February shipment. Traders indicated that container shortage and delays in shipments have made exporters stay away from the Asian markets.
  • The weekly Davis Indexes for domestic HMS 1&2 (80:20) were unchanged delivered South Taiwan and North Taiwan mills, respectively, on Tuesday. Traders said mills are buying competitively prices domestic scrap rather than booking imported material. High offers and sluggish domestic demand from infrastructure and real estate sectors in winter is also affecting trades.
  • Taiwan’s China Steel Corporation (CSC) raised finished steel prices for domestic February shipments by TWD2,200-3,000/mt ($79-107/mt) or around 9.5pc from early January amid high raw material prices and an uptrend in global steel prices. ($1=TWD28)

 

China

  • In China, Shagang Steel raised ferrous scrap buying prices by CNY125/mt ($19/mt) on Tuesday from the prior week. The weekly Davis Index for HMS 1&2 (80:20) rose by CNY125/mt delivered mill on Tuesday. Deals for P&S 5ft were heard at CNY4,100-4,150/mt this week.
  • With no further buying from China, after the initial deals in early January, importers expect a slowdown in Chinese buying due to cold weather and rising COVID-19 cases. Importers opined that the difference of $60-70/mt between domestic and imported scrap cfr China is making imports unattractive.
  • Semi-finished prices registered an uptick amid higher iron ore prices. On Tuesday, prices for Q235 150mm square billets remained flat ex-works Tangshan from the week prior. SE Asian billet export offers are under pressure with importers from the Philippines bidding $600/mt cfr this week.
  • The Chinese government has shut Shijiazhuang and Xingtai cities in Hebei province, which has impacted transportation and logistics in the region. Instances of the new variant of COVID-19 spreading in the two cities have forced authorities to levy strict restrictions on interstate movement, but a significant impact on steel production is ruled out. ($1=CNY6.5)

 

Vietnam 

  • In the containers market, the weekly index for US-origin HMS 1&2 (80:20) Thursday fell by $15/mt cfr Vietnam from the prior week. Vietnamese mills reduced bids to $420-430/mt, while offers were firm. Traders expect offers to fall as mills delay buying to avoid high prices.
  • The weekly index for P&S 5ft and shredded fell by $19/mt and $13/mt cfr, respectively, on Thursday, amid lower bids. Offers for P&S 5ft in containers rose $10/mt from a week ago. Offers for oversized P&S 5ft from Hong Kong remained at $480/mt cfr with no deals heard. Offers for Japanese #1 busheling heard at $495/mt cfr with no deals confirmed.
  • In bulk, Japanese #2 HMS offers fell by $5-10/mt from the prior week on a cfr basis, but no deals were heard.
  • Limited offers and deals heard this week as mills lowered bid even as supplies remained tight and freight prices continue to rise amid the container shortage.
  • The weekly Davis Index for HMS 1&2 (80:20) increased by VND3,500,00/mt ($15/mt) delivered South Vietnam inclusive of taxes from the prior week. Mills turned cautious amid a shortage of domestic scrap and higher offers from Japanese and US-based suppliers.
  • Mills have increased domestic scrap purchases, while yards are holding back on hopes of better prices in the next few weeks. Few deals for HMS 1&2 (90:10) heard at VND9,00,0000-9,20,0000/mt delivered South Vietnam on Tuesday. ($1=VND23,000)

 

Indonesia

  • Indonesian mills remained quiet on slow domestic and export demand for steel. Many importers and exporters registered under the new scrap policy, but no deals were heard. Traders were negotiating for ferrous scrap from Hong Kong, Singapore, and the US, while Indonesian mills were more interested in shorter transit scrap this week. Negotiations for imported billets between Vietnamese seller and Indonesia mills were heard at $600/mt cfr.
  • Buyers stayed away from firm offers. The weekly Davis Index for HMS 1&2 (80:20) fell by $8/mt cfr Jakarta. Bids fell by $10/mt cfr Jakarta on Thursday. Offers for Hong Kong-origin HMS 1&2 (80:20) heard at $460/mt cfr.
  • The indexes for P&S 5ft and shredded fell by $7/mt and $5/mt cfr Jakarta, respectively. Offers for Singapore-origin P&S 5ft heard at $480/mt cfr Jakarta. The weekly Davis Index for #1 busheling fell by $8/mt cfr on low bids. Few offers for busheling were active this week.

 

Thailand

  • The weekly Davis Index for domestic HMS 1&2 (80:20) rose by THB500/mt ($16.6/mt) to THB11,800/mt ($391.7/mt) delivered Rayong mill inclusive of taxes on Tuesday amid firm buying by Thai mills and strong global cues.
  • Deals for P&S 5ft were heard at THB12,500/mt. The imported scrap market remained bullish and a few buyers restocked scrap from Australia, Hong Kong. Traders said demand for scrap will remain firm and imported prices could rise further pushing up domestic prices.
  • Few Thai exporters have started offering Ms turnings to India at $445-460/mt cfr Nhava Sheva, said, traders. Sellers are hopeful of deals due to rising freight costs and a shortage of scrap from other regions. ($1=THB30)

 

Malaysia 

  • The weekly indexes for HMS 1&2 (80:20) settled unchanged delivered western mills and eastern mills, respectively, inclusive of taxes.
  • Mills refused to raise bids this week and preferred domestic scrap over imported, said traders. Rising iron ore and scrap prices are expected to hurt Malaysian mills that export billets to Asian countries, especially China. ($1=MYR4)

 

India 

  • The Indian imported scrap market continued to stay silent awaiting a fall in offer prices. A prolonged pause has distressed some traders to sell material. There was a lull in the domestic market due to the Makar Sankranti festival. Also, the gap between offers and bids widened as domestic steel prices were under pressure this week.
  • The Davis Index for containerized shredded, Friday, cfr Nhava Sheva, dropped by $2.59/mt from Thursday and $3.21/mt from a week ago. Most buyers stayed away from purchasing shredded, as offers were unviable. Most mills preferred to buy domestic scrap priced Rs3,000-4,000/mt lower than imported material.
  • Some mills are facing a cash crunch. Sellers and buyers await their goods tax refunds and have urged the government to expedite the process.
  • A few Dubai-based yards with a limited holding capacity looked to sell off material and accepted bids $15-20/mt lower than their asking prices. The Davis Index for UAE-origin HMS 1&2 (80:20), Friday, settled cfr Nhava Sheva, down by $5/mt from Thursday.
  • Indian mills stayed away from the bulk scrap market. International freight rates continued to firm up on all South Asian routes as container unavailability persists. The shortage could ease with the Chinese New Year holidays slowing seaborne trades. ($1=Rs73.05)

 

India domestic

  • Domestic and imported ferrous scrap prices softened this week, weighed down by declining finished steel demand. In the latter part of the week, imported scrap prices in the other two South Asian markets started to lose steam.
  • Markets were largely quiet in India this week amid harvest festivities in many regions. The Davis Index for HMS 1&2 (80:20) declined by Rs500/mt ($6.83/mt) del Mumbai from Thursday and Rs1,800/mt from a week ago.
  • In Mandi Gobindgarh, the Davis Index for HMS 1&2 (80:20) Friday fell by Rs50/mt delivered mill from the prior day and Rs1,900/mt from a week ago.

 

Pakistan  

  • Pakistani mills after actively buying over 20,000mt in containers avoided new bookings amid softening ferrous scrap prices. Bids fell further on Friday extending the downtrend that started on Wednesday.
  • The daily Davis Index for containerized shredded, Friday, dropped by $7.13/mt cfr Port Qasim. Prices fell $2/mt from the prior week. Some traders and indenters were under pressure to reduce their positions before prices drop further leading to a few distressed sales in the latter part of the week.
  • The daily index for US-origin HMS 1&2 (80:20) cfr Port Qasim fell by $3.75/mt from Thursday in the absence of major deals. Suppliers from UAE offered #1 HMS to Pakistani buyers at $450-455/mt cfr Port Qasim. The daily Davis Index for UAE-origin HMS 1&2 (80:20) cfr Port Qasim, fell by $6/mt from the prior day. There is a gap of over $40/mt between HMS and shredded which could force mills to prefer HMS from the Middle East.
  • A few mills have started offering discounts on steel products amid slow sales. Billet prices dropped as harsh winter disrupted logistics in some regions. The weekly index for domestic Bala billet increased PKR3,750/mt ex-works. The Davis Index for G-60 billet ex-works Punjab fell PKR500/mt from Jan 8.
  • The weekly Davis Index for rebar G-60 rose PKR2,500/mt ex-works Karachi, while in Punjab the index increased PKR2,000/mt to PKR131,500/mt ex-works.
  • The weekly index for Art Q toke scrap equivalent to a mix of HMS and P&S, Friday rose by PKR1,750/mt ($8/mt) ex-yard Lahore. The weekly index for Pure Q Toke (shredded) dropped by PKR2,000/mt ex-yards amid falling imported scrap prices. (1=PKR160.59)

 

Bangladesh

  • Bangladeshi steel mills stayed away from containerized ferrous scrap bookings expecting prices to fall in the coming days amid easing supplies. Chattogram-based mills booked over 115,000mt in four cargoes from the US, Australia, and Japan for February deliveries to refill depleting inventories this week while other mills opted for competitively priced domestic scrap and Sponge iron imports from India. Mills purchased #2 HMS from Japan in the Kanto tender.
  • The daily Davis Index for containerized shredded, Friday, cfr Chattogram, fell $0.5/mt from Thursday. Many believe prices could rise next week as the domestic markets in the US and Europe are bullish for scrap, while generation and collection are hampered, especially in Europe, due to COVID-19-related lockdown.
  • The Davis Index for containerized HMS 1&2 (80:20) of the US-origin and Latin America-origin cfr Chattogram fell by $3.57/mt and $3/mt, respectively, from Thursday. Imported sponge iron from India fell by $15-20/mt from the prior week.
  • The weekly index for ship scrap equivalent to P&S dropped BDT1,000/mt ex-works. Domestic HMS 1&2 (80:20) index dropped BDT875/mt ex-yards Chattogram. Domestic scrap prices have dropped by almost BDT2,000-3,000/mt after they peaked early last week.
  • The weekly index for domestic billet ex-works Chattogram dropped BDT2,000/mt Friday. The index for large steelmakers’ rebar, Friday, dropped BDT750/mt ex-works. Despite the necessity to maintain their spread between scrap and rebar, mills offered discounts of BDT1,000-1,500/mt to encourage sales.
  • Medium-scale mills in Dhaka, however, sold rebar at BDT60,000-61,000/mt ex-works as the government instructed some mills to liquidate their stocks immediately. Building contractors’ association has been very vocal about rising raw material costs due to higher steel and cement prices in the country. ($1= BDT84.68)

 

Metallics

 

CIS 

  • The weekly Davis Index for CIS basic pig iron rose by $22/mt in the Black Sea basin on Friday after exporters raised offers amid limited allocation of the material.
  • CIS pig iron suppliers announced new offers at $600/mt fob Black Sea after the holidays on bullish sentiment since most suppliers have already sold significant tonnages for February and March shipment. Some of them are sold out for February shipment.
  • No deals were reported this week as most pig iron buyers chose to wait and evaluate prices for ferrous scrap and steel products before placing orders. Negotiations are expected to revive next week.
  • The weekly Davis Index for CIS pig iron in Italy increased by $10/mt on Friday as there were some bookings from a trader.

 

US

  • The weekly Davis Index for basic pig iron (BPI) ticked down by $1/mt cfr New Orleans port on Thursday as transactions came to a standstill following about two months of price surges.
  • The latest BPI bookings to the US were from Brazil and CIS last week, priced at $575/mt cfr Nola. New offer prices remain at $590-600/mt cfr Nola, same as Jan 7, but offers are now being met with little consumer interest.
  • Offer levels along with the next sales prices for BPI are projected to remain unchanged or decline as scrap alternatives may have reached a price peak.
  • The Davis Index for nodular pig iron (NPI) imports rose by $4/mt cfr Nola. The material remains in tight supply, but the latest heard offers and bids ranged from $630-680/mt cfr Nola with offers indicating May or late Q2 delivery.
  • The weekly Davis Index for US hot briquetted iron imports retracted its gain from last week and dropped by $33/mt cfr Nola. New offers have not been reported and the latest price evaluation for the material correlates with assumed buyer interest along with price sentiment for other grades.

 

India

  • The index for Sponge iron dropped by Rs1,750/mt from Thursday and by Rs1,800/mt del Mumbai mill from a week ago. Sponge iron manufacturers reduced offers to boost trades.
  • In Mandi Gobindgarh, the index for Sponge iron declined by Rs400/mt delivered mill from a day ago and by Rs1,900/mt from a week ago. Bids from buyers were Rs200/mt lower than offers but sellers refused to accept those levels and stayed away from fresh deals.

 

India semi-finished and finished steel

  • The daily Davis Index for billet in Mumbai decreased by Rs1,000/mt ($13.64/mt) from the previous Friday in line with a fall in rebar prices and slow buying by rolling mills. The index for rebar fell by Rs1,100/mt ($15.04/mt) on sluggish demand.
  • In Raipur, the daily index for billet fell by Rs1,000/mt from the previous Friday while the daily index for rebar dropped by Rs2,000/mt ($27.35/mt) amid sluggish buying in the retail market.
  • In Mandi Gobindgarh, the daily index for ingot decreased by Rs500/mt ($6.83/mt) from the previous Friday in-line with a fall in local scrap prices.
  • The bi-weekly index for billet in Durgapur fell by Rs800/mt ($10.94/mt) on Thursday from the prior week due to a dip in rebar prices. The index for rebar was down Rs1,000/mt.
  • In Chennai, the bi-weekly index for billet and rebar remained flat on Thursday from the prior week with low trades amid the harvest festival. However, sponge prices dip Rs500-800/mt on slow buying by steel mills. ($1=Rs73.11)

 

Shipbreaking 

  • Shipbreaking prices dropped on Friday amid sluggish demand from the rolling mills. The daily Davis Index for 10Ani, Friday, settled flat from the prior week, while the index for 12Ani dropped Rs50/mt ($0.684/mt) amid limited deals.
  • The daily Davis Index for 2kg plates declined by Rs100/mt on Friday. Shipbreakers expect construction activities to pick pace after a brief pause mid-week amid harvest festivals in Punjab, Gujarat, and Maharashtra.
  • Amid weak demand for finished steel, the Davis Index for HMS attachments and Melting declined by Rs200/mt each. ($1=Rs73.09)

 

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