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Ferrous market update: Jan 18-22

Ferrous Market Update 01/22/2021

 

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) remained unchanged on Friday amid a trade impasse.
  • Turkish mills have postponed ferrous scrap purchases, targeting further price decreases due to difficulties with rebar sales. Bids are reported at $430-435/mt cfr for HMS 1&2 (80:20) from the USA and the Baltic region or even lower. On the other hand, most suppliers prefer to wait until next week instead of revising their offers downwards.
  • The most recent transaction in Turkey was fixed at $440/mt cfr for HMS 1&2 (80:20) from Sweden. After that, most sellers decided to step back as prices have fallen by around $40/mt in a span of 10 days. Scrap exporters believe that Turkish mills will resume bookings next week as they still require 20-25 deep-sea cargoes for March shipment.
  • In the domestic market, Turkish steelmakers have decreased purchase prices for shipbreaking scrap by $5/mt since Wednesday.
  • The daily domestic spot rebar prices in Turkey decreased by TRY40-60/mt ($5-8/mt) on Friday amid sluggish trading, while the daily exported rebar prices were unchanged. ($1=TRY7.39)

 

Turkey domestic

  • The weekly Davis Index for DKP scrap in Turkey declined by TRY31/mt ($4/mt) on Monday as most mills continued to drop their purchase prices.
  • Purchase prices for shipbreaking scrap in the Izmir region followed the downtrend in the market and fell by $3/mt delivered. ($1=TRY7.50)

 

CIS

  • The weekly Davis Index for A3 scrap dropped by $23/mt fas Baltic Sea basin and by $11/mt fas Black Sea basin on Monday as negative sentiment gained in the export market.
  • Sales have not been reported since the beginning of January amid weak demand in export destinations, especially in Turkey. Turkish mills cut their bids for HMS 1&2 (80:20), but suppliers from St Petersburg and Rostov-on-Don have refused to accept them due to an uptrend in collection prices. Besides, exporters are wary to compromise on their offer prices since the export duty for ferrous scrap in Russia will be raised to a minimum of €45/mt at the end of this month.
  • Collection prices for scrap increased in the Russian market as exporters require tonnages to complete their cargoes, while inflow of the material is slow. As a result, the weekly Davis Index for A3 scrap rose by RUB1,000/mt ($13/mt) delivered St Petersburg dock on Monday and climbed by RUB150/mt ($2/mt) delivered Rostov-on-Don dock. Some scrap collectors are ready to pay a premium of RUB200-300/mt ($3-4/mt) for the supply of large tonnages of the material. ($1=RUB74.20) 

 

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region decreased by €25/mt ($30/mt) on Tuesday.
  • Ferrous scrap exporters from the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) cut collection prices significantly this week amid a strong negative sentiment in the market as Turkish mills achieved lower prices in bookings from the USA and the Baltic region. 
  • Some European recyclers decided to suspend collection and withdraw offers to Turkey this week. (€1 = $1.21)

 

UK dockside

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices edged up by £2/mt ($3/mt) delivered dockside on Tuesday.
  • UK dockside ferrous scrap benchmarks solidified around recent highs this week, with bulk processors reluctant to concede any further substantial price hikes.
  • Local merchant suppliers warned they may hold back material unless a portion of relatively healthy deep-sea margins were allocated to them.
  • However, major British exporters cited weakness in the deep-sea market following a recent $25/mt drop in Turkish HMS 1&2 (80:20) import prices over the past week.
  • Some UK dockside buyers were heard to have countered merchants with their own warning that they might have to drop prices by £10-15/mt because of weaker Turkish demand.
  • One UK-based trader commented that bulk processors were “fighting positivity with negativity” with respect to quelling higher price demands from suppliers.
  • The weekly indexes for north and south UK OA (Plate & Structural) climbed by £3/mt delivered dockside on Jan 19, while the north and south UK 5A/5C (frag feed) ferrous scrap indices were unchanged. (£1 = $1.36)

 

UK domestic

  • Davis Index’s monthly UK 1&2, 3B, and OA ferrous scrap consumer indices climbed by £60/mt ($81mt) delivered mill following the conclusion of mill-yard negotiations in January.
  • Monthly UK ferrous scrap settlements were staggered over the past month, as some large domestic suppliers agreed to “manage” price hikes with local steel mills.
  • Increases of £30/mt were initially passed on to domestic steel producers to limit merchant suppliers’ expectations in dockside negotiations with the desired effect for most bulk processors and exporters, as they suppressed ferrous scrap purchase price increases at UK docksides by a similar amount.
  • More recently, merchant suppliers became aware that some exporters had maintained relatively low dockside rates, enabling them to benefit from wide margins. As a result, some merchant suppliers threatened to hold back material last week unless those bulk processors passed on a portion of healthier margins.
  • Based on the increase in last week’s UK ferrous scrap dockside settlements, domestic suppliers negotiated a further £30/mt increase to £60/mt for January mill deliveries.
  • Davis’ monthly UK 4A/4C, 8A/8B, and 12A/C ferrous scrap consumer indices also increased by £60/mt. (£1 = $1.35)

 

Germany domestic

  • Davis Index’s monthly German ferrous consumer scrap indices increased by around €87/mt ($105/mt), depending on grade and location, following the conclusion of mill-yard negotiations in January.
  • Domestic ferrous scrap prices surged over the past month as local steel producers tried to prevent material from being diverted towards export markets, where suppliers have benefitted from stronger prices.
  • While little has materially changed in the way of German steel and ferrous scrap supply-demand fundamentals over the past month, Turkish HMS 1&2 (80:20) import prices have surged by $72.50/mt to a recent peak of $482.50/mt over this period.
  • North, East, South, and West German ferrous scrap indices increased by €67-96/mt, €86-95/mt, €75-95/mt, and €80-98/mt, respectively, on delivered consumer basis. (€1 = $1.21)

 

Spain

  • Davis Index’s weekly northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices plunged by €36/mt ($44/mt) cfr on Friday.
  • Spanish ferrous scrap import prices declined this week on cues and recent developments in competing major deepsea trade routes.
  • Davis Index’s Turkish HMS 1&2 (80:20) import benchmark declined by $38.75/mt over the past week to $440/mt cfr Turkey on Jan 21, placing pressure on some north European docksides to drop purchase prices by €25/mt to protect relatively thin margins.
  • In the UK shortsea small bulk coaster market, prices witnessed similar declines. However, compared with their north European-based counterparts, UK based ferrous scrap exporters are benefitting from relatively wide margins.
  • Some opportunistic UK-based bulk processors have leveraged weaker Turkish import prices to push dockside purchase prices down £10-20/mt in the past 24-48 hours. One UK-based merchant supplier said that the larger players were trying to maintain their “fatter margins”.
  • That said some players had “panicked” given that Indian and Turkish purchasing had gone quiet.
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices both fell by €30/mt fob on Jan 22. (€1 = $1.22)

 

US dockside

  • The weekly US East Coast and Houston dock collection prices for ferrous scrap slipped by $20-25/gt marking the first price decline following 10 weeks of growth.
  • This week, the ferrous export market lost some momentum as buyers became less active and lowered their bids. Domestically, scrap flows into yards strengthened, allowing mills to obtain necessary material without much difficulty. However, some industry participants remain hopeful as mill demand continues to be strong, which may somewhat temper the potential, imminent downtrend. 
  • Export yard buying prices for #1 HMS on the East Coast averaged around $375-380/gt for local tons on Tuesday declining by $20/gt or more for most sellers since last week and covering a full range of deals between $360-395/gt. 
  • Higher ranged prices were reported by sellers that continue fulfilling tonnages on older orders, while bulk exporters cut prices on new ones to the lower end of the range by Tuesday. Sellers may see further price drops of $10-20/gt at the docks in the near term.
  • Export prices to Turkey from the US for HMS 1&2 (80:20) have been tapering off since the first week of January and dropped by $32.11/mt in eight days to $450/mt cfr on Jan 19 compared to $482.11/mt cfr on Jan 11.
  • In Boston, the weekly Davis Index for export yard collection prices fell by $24/gt delivered Boston dock for #1 HMS, by $22/gt delivered for P&S 5ft, and by $21/gt delivered for shredder feed. 
  • The weekly Davis Index for export yard buying prices in New York moved down by $29/gt delivered for #1 HMS and $27/gt delivered dock for P&S 5ft. Shredder feed declined by $26/gt delivered. 
  • In Philadelphia, the Davis Index for export yard collection prices dropped for #1 HMS by $25/gt delivered, for P&S 5ft by $27/gt delivered, and for shredder feed by $25/gt delivered.
  • In Houston, the weekly Davis Index decreased by $22/gt for #1 HMS while P&S 5ft moved down by $23/gt delivered Houston dock. Shredder feed dropped by $17/gt delivered.
  • Export yard ferrous scrap prices on the West Coast began declining in tandem with the East Coast. Dock prices in San Francisco and Los Angles declined while Portland trended mostly flat for heavy melt and structural steel. 
  • The anticipated correction on slipping Turkish domestic scrap prices and against firm offer prices began to inform the global scrap market this week. Additionally, Asian buyers are contending with either weaker than expected finished steel demand, or a push back from buyers unwilling to absorb higher prices on higher input costs. 
  • Imported scrap offers and deals into India have declined as sellers have refused to match offers to bids and buyers await further price clarity. China is also supporting the downward scrap trend as steel prices and domestic scrap buying prices may remain under pressure into mid-February due to the Chinese New Year holiday.
  • Domestic scrap prices and lower billet rates in Bangladesh pushed imported scrap prices down with limited trades. 
  • In Taiwan, South Korea, and Vietnam, importers of US and Japanese scrap, are facing weak steel demand and lower domestic scrap prices and may reduce finished steel prices over the next few weeks. 
  • Market participants in the US Pacific Northwest noted that while the market has peaked, regional docks have not yet adjusted pricing and may delay it until late January or early February. Shredder feed for internal processing was in demand over the past two weeks with the possibility of slightly higher prices into late January and are likely to decline into February. Scrap dealers expect a drop of $10-20/gt at the docks in early February on present market conditions.
  • In Portland, the weekly Davis Indexes for #1 HMS and P&S 5ft remained unchanged. Shredder feed increased by $11/gt delivered. Docks in the region compete against mills and given the expected strong demand in February have opted to maintain prices flat for the moment. 
  • The San Francisco Davis Indexes declined for #1 HMS by $21/gt delivered, for P&S 5ft by $20/gt delivered, and for shredder feed by $24/gt delivered. Market participants reported disparity in buying prices. 
  • The weekly Davis Indexes for dock prices in Los Angeles also declined and several sellers expect docks to announce another price reduction at the end of the week or early next week. The weekly index for #1 HMS declined by $20/gt delivered, P&S 5ft fell by $20/gt delivered, and shredder feed slipped by $18/gt delivered. Los Angeles dock buying prices declined on both lower bulk deal pricing expectations and declining container deals.  

 

US containers

  • The US containerized scrap prices and the corresponding Davis Indexes fell by $28-43/mt on core grades signifying a steeper drop from the $1-10/mt declines last week, which halted a 14-week price surge.
  • Turkey’s lower import scrap bulk prices have reverberated into all aspects of scrap trading. This week, buyers have paused on deals and those that are feasible are low-volume ones, according to sellers. 
  • Several sellers also noted that they are not aggressively quoting or matching bids as prices in February may rebound after the second half of this month absorbs the expected market corrections. 
  • Even with the market in retreat mode, some suppliers’ order books are full until mid-February because of which this short-term contraction is not an immediate concern to them. Others expect an upward trend from Chinese and Asian steel markets after the Lunar Holiday which begins on Feb 12 and officially ends on Feb 22.
  • The signals in China upon its return from the holiday will be essential to inform the market of its import demand on ferrous scrap, billet, and finished steel. Overall, iron ore and scrap prices are expected to remain strong through 2021. 
  • Offer prices on scrap from Japan have declined along with the appetite from Asian buyers. Asian market participants note that the price correction was required as finished steel demand is still recuperating from the pandemic, stimulus packages are taking shape, and overall economic conditions in the Asian markets are still being assessed. 
  • The weekly Davis Indexes in New York fell by $36/mt for #1 busheling. HMS 1&2 (80:20) declined by $33/mt, P&S 5ft decreased by $28/mt, and shredded moved down by $38/mt.
  • In Los Angeles, the weekly Davis Indexes for #1 busheling fell by $37/mt while HMS 1&2 (80:20) declined by $34/mt, P&S 5ft dropped by $38/mt, and shredded moved down by $39/mt.
  • In San Francisco, the indexes declined by $36/mt for #1 busheling, by $33/mt for HMS 1&2 (80:20), and by $43/mt for both P&S 5ft and shredded. 
  • The Davis Indexes in Seattle also tumbled with #1 busheling falling by $39/mt, HMS 1&2 (80:20) declining by $40/mt, P&S 5ft dropping by $39/mt, and shredded decreasing by $41/mt.
  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) declined by $38.75/mt to $440/mt cfr on Thursday compared to $478.75/mt cfr on January 14. Turkish mills are seeking bulk scrap at lower bids but sellers are maintaining strong offer levels. 

 

Mexico

  • Mexico’s domestic ferrous scrap prices rose in the North and Bajío, on strength in demand but fell in the Central area.
  • Overall, prices are expected to drop by $40/mt in February, mirroring the anticipated fall in the US domestic ferrous scrap market. Thus, market participants expect prices to decline by MXN200-400/mt ($10-20/mt) in Central Mexico and by MXN200/mt in Bajío next week.
  • Market participants believe that supply has caught up with demand in these regions. Moreover, since there is enough scrap availability in the international markets, national prices must drop, or mills will turn to the cheaper alternative of importing the scrap volumes they need.
  • In North Mexico, the weekly Davis Indexes for #1 HMS, P&S 5ft, shredded, machine shop turnings, and #1 busheling rose by MXN450/mt, MXN800/mt, MXN625/mt, MXN825/mt, and MXN850/mt delivered, respectively.
  • In Bajío, the weekly Davis Indexes increased by MXN50/mt delivered Mexico consumer for #1 HMS, by MXN150/mt delivered for P&S 5ft, by MXN825/mt delivered for shredded, by MXN600/mt delivered for machine shop turnings, and by MXN460/mt delivered for #1 busheling.
  • In Central Mexico, the weekly Davis Indexes for #1 HMS, P&S 5ft, shredded, and machine shop turnings fell by MXN50/mt delivered Mexico consumer. The index for #1 busheling fell by MXN150/mt delivered. ($1=MXN19.93)

 

Japan  

  • Tokyo Steel reduced its bids for ferrous scrap for the third time in January. Effective Jan 23, Tokyo steel reduced ferrous scrap purchase prices by JPY2,000/mt ($19/mt) for #2 HMS delivered Utsunomiya plant. Prices at the other four works were unchanged. 
  • Sluggish finished steel demand in Asian markets has pressured importers to reduce bids for Japanese ferrous scrap by JPY2,000-2,500/mt this week. Traders focused on exports to reduce inventory. 
  • Chinese mills booked two small bulk deals of Japanese HS 3,000mt and 2,500-3,000mt at $500-505/mt cfr China prior week. Ongoing negotiations with Chinese buyers could result in trades in February. 
  • The decline in Japanese scrap prices could be short-lived and market participants expect prices to rise in February after the Chinese Lunar New Year holidays. 
  • The weekly Davis Index for Japanese #2 HMS fell by JPY2,000/mt fas on Wednesday. In the export market, the weekly index for the grade fell by JPY1,992/mt fob Japan with Hyundai reducing bids by JPY2,000/mt ($19/mt) fob from the prior week. 
  • Bids for Japanese #1 busheling (Shindachi) fell by JPY1,000-1,500/mt fob on Wednesday from a week ago. The weekly index for the grade fell by JPY1,500/mt fas and by JPY1,375/mt fob Japan. 
  • The weekly Davis Index for HS and shredded, Wednesday, fell by JPY1,667/mt and JPY1,875/mt fas, respectively. 
  • In Kanto, the Davis Index for #1 HMS fell JPY1,500/mt fas from the prior week and by JPY1,625/mt fob Japan. 
  • Offers for HMS 1&2 (50:50) fell $15-20/mt cfr Taiwan this week, and the index for the grade fell by $33/mt cfr Taiwan. 
  • In Vietnam, the index for Japanese HMS 1&2 (50:50) fell by $28/mt cfr. Buyers from Vietnam, Korea, and Taiwan have either paused trades or continue to negotiate with Japanese exporters amid a bearish sentiment in Asian ferrous scrap markets. ($1=JPY103.60)

 

South Korea  

  • Prices of containerized imported ferrous scrap fell amid slow demand for finished steel in South Korea. Construction projects have slowed due to a steep rise in steel and cement prices. Many mills have lowered bids in line with a decline in scrap and ore prices in other Asian countries. The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, settled down $17/mt cfr South Korea from the prior week. 
  • The weekly Davis Indexes for P&S 5ft and #1 HMS, Wednesday, dropped by $15/mt and $20/mt cfr South Korea, respectively. The index for shredded fell by $15/mt from the prior week. Korean mills focused on bulk scrap over containerized amid a shortage of containers and vessels. 
  • Hyundai bought 45,000mt of Japanese scrap on Thursday on a fob basis, down by JPY2000-2500/mt from the prior deal. The cargo consisted of 11,000mt busheling, 20,000mt HS . and 14,000 mt shredded. 
  • Hyundai Steel reduced scrap purchase prices on Wednesday with bids for #2 HMS down by JPY2,000mt at JPY 39,500/mt fob.
  • Domestic scrap bids fell on Wednesday by KRW20,000/mt following the slide in global scrap prices. ($1=KRW1,105)

 

Taiwan  

  • Taiwanese steel mills reduced bids on Thursday on global cues coupled with sluggish demand for finished steel. The Davis Index for containerized US-origin HMS 1&2 (80:20) fell by $11/mt on Friday from the day prior and by $21/mt cfr from the previous Friday. 
  • Most mills adopted a wait-and-watch strategy until the Chinese Lunar New Year holidays in February. They expect global ferrous scrap prices to fall amid cold weather and limited finished steel demand in most Asian countries. 
  • The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling fell by $16/mt, $14/mt, $22/mt, and $15/mt cfr, respectively. 
  • Offers for Japanese HMS 1&2 (50:50) dropped by $20/mt from the last week. Importers expect a rise in Chinese buying in February after the Chinese New Year holidays. Buyers are staying away from long-transit containerized shipments. 
  • On Monday, Feng Hsin Steel kept rebar and ferrous scrap prices unchanged for the rest of January deliveries.
  • The weekly Davis Indexes for domestic HMS 1&2 (80:20) remained unchanged at TWD11,450/mt ($409/mt), and TWD11,700/mt delivered South Taiwan and North Taiwan mills, respectively. ($1=TWD28)

 

China

  • In China, Shagang Steel’s ferrous scrap purchase prices were flat on Tuesday from the prior week. Semi-finished steel prices were also unchanged due to sluggish demand.
  • The weekly Davis Index for the HMS 1&2 (80:20) settled flat. The market was rangebound last week due to limited buying, cold weather, rising COVID-19 cases, and elevated inventories of finished steel. 
  • On Tuesday, prices for Q235 150mm square billets in Tangshan remained unchanged from the prior week, including 13pc VAT. ($1=CNY6)

 

Vietnam 

  • Sluggish finished steel demand in both, domestic and the export markets, led to mills lowering bids further this week. Demand for steel imports from China and other Asian countries has declined amid harsh weather conditions and a resurgence of the pandemic.
  • In the containers market, the weekly index for US-origin HMS 1&2 (80:20) Thursday settled down by $15/mt cfr from the prior week. Traders expect offers to fall further as mills have slowed purchases amid a fall in global ferrous scrap prices. 
  • On Thursday, the weekly index for P&S 5ft and shredded fell by $14/mt cfr and $15/mt cfr, respectively, amid lower bids. 
  • In the bulk market, Japanese #2 HMS offers fell by $10-20/mt from the prior week.
  • In the domestic market, the weekly Davis Index for HMS 1&2 (80:20) fell by VND250,000/mt ($10.8/mt) this week for scrap delivered South Vietnam inclusive of taxes. Sluggish finished steel demand impacted ferrous scrap prices in Vietnam. Mills bought domestic scrap at lower prices. ($1=VND23,058)

 

Indonesia

  • Indonesian mills remained quiet amid a slow domestic market and falling imported ferrous scrap prices. Traders are negotiating deals with sellers in Hong Kong, Singapore, and the US. 
  • Buyers expect ferrous scrap prices to drop until the Chinese Lunar New Year. The weekly Davis Index for HMS 1&2 (80:20) fell $14/mt cfr Jakarta. Bids fell by $20-30/mt cfr Jakarta on Thursday. 
  • The indexes for P&S 5ft and shredded both fell by $12/mt cfr Jakarta. Offers for Singapore-origin P&S 5ft declined by $20/mt cfr from the prior week. The weekly Davis Index for #1 busheling fell by $10/mt cfr on low bids.

 

Thailand

  • The weekly Davis Index for domestic HMS 1&2 (80:20) fell by THB300/mt ($10/mt) to delivered Rayong mill inclusive of taxes, amid limited deals and weak global cues. 
  • Many steel mills have piled up inventory and stayed away from any fresh purchases. Demand for scrap could remain sluggish due to rising COVID-19 cases and the resulting delays in the commencement of infrastructural projects.
  • Thai exporters lowered offers for MS turnings scrap by $20/mt cfr Nhava Sheva last week, but Indian steel mills found the prices above workable levels. Exporters were unwilling to lower their offers further due to increased freight costs and container shortage. ($1=THB30)

 

Malaysia 

  • The weekly indexes for HMS 1&2 (80:20) fell by MYR60/mt($14.8/mt) and MYR75/mt for deliveries to western mills and eastern mills inclusive of taxes, respectively. 
  • Mills reduced bids on Tuesday on sluggish demand for finished steel and a fall in global scrap prices. Malaysian mills are closely watching Turkish and Chinese ferrous scrap prices before any new purchases. ($1=MYR4)

 

India 

  • Trades for imported scrap picked up due to a steep decline in prices. Still, a majority of buyers opted for domestic scrap and sponge iron purchases. 
  • The Davis Index for containerized shredded, Friday, cfr Nhava Sheva dropped $50.54/mt from a week ago. 
  • Imported HMS from declined by over $70/mt in less than a week amid strong resistance to present offer levels and eased supply. 
  • The Davis Index for UAE-origin HMS 1&2 (80:20), Friday, settled at $355/cfr Nhava Sheva down by $17/mt from Thursday. 
  • Indian mills are likely to resume exports of billets soon amid a sharp decline in the domestic market and target price levels of $550-560/mt fob India. 
  • HMS from Dubai was a preferred option for most buyers on shorter delivery time and competitive prices amid a volatile market.
  • The shortage of containers in Asia is expected to ease once the Chinese New Year Holidays start in February and slow import-exports in China for almost 15 days. ($1=Rs72.96)

 

India domestic

  • Domestic ferrous scrap prices were on a downtrend for a second successive week. In the six months ending December, primary mills had raised finished steel prices by over 50pc while secondary mills had increased them by around 20-25pc. The price rise has stalled many infrastructure projects in the country, dragging down steel demand. Finished steel prices have thus come under pressure. Besides a plunge in finished steel trades, a decline in imported scrap has also pulled down the domestic scrap market. 
  • In Mumbai, the index for HMS 1&2 (80:20) declined by Rs1,750/mt delivered mill in a week and by Rs1,500/mt del Mandi Gobindgarh mill. 
  • If the weak finished steel demand persists, small-scale mills could soon decide to cut production to avoid stockpiled inventories.

 

Pakistan  

  • Pakistani mills exercised caution while making buying decisions this week, with ferrous scrap prices on a decline. Domestic steel prices declined by over $50/mt and domestic scrap became the preferred choice. 
  • The daily Davis Index for containerized shredded, Friday, fell $58.06/mt cfr Port Qasim from the prior week. Mills were in the market to restock ferrous scrap. 
  • The daily index for US-origin HMS 1&2 (80:20) dropped by $45.25/mt from a week earlier. Some yards stayed away from making fresh offers amid the decline in prices, container unavailability, and limited vessel space.
  • The daily Davis Index for UAE-origin HMS 1&2 (80:20) cfr Port Qasim dropped by $52/mt from the earlier week. 
  • The Davis Index for G-60 billet ex-works Punjab, down PKR12,500/mt from Jan 15. The weekly index for domestic Bala billet decreased PKR9,750/mt to PKR94,000/mt ($585/mt) ex-works. 
  • Large mills could lower prices more if ferrous scrap prices drop by another $25-30/mt, believe traders. The weekly Davis Index for rebar G-60 dropped by PKR2,500/mt ex-works Karachi.
  • The weekly index for Art Q toke scrap equivalent to a mix of HMS and P&S Friday dropped by PKR7,250/mt ($45/mt) ex-yard Lahore. Trades for scrapped vessels picked up this week as offers dropped below $400/ldt cfr Pakistan. (1=PKR160.75)

 

Bangladesh

  • Bangladeshi mills stayed away from booking containerized scrap in a falling market. Easing supplies, weak domestic steel demand, and a sharp increase in freight charges kept buyers at bay this week.
  • The daily Davis Index for containerized shredded, Friday, cfr Chattogram, down by $47.5/mt from Jan 15. Buyers were silent for containerized trades this week in anticipation of another $15-20/mt drop next week. 
  • The indexes for containerized P&S and #1 busheling were down $33/mt and $28/mt cfr Chattogram, respectively.
  • The Davis Index for containerized HMS 1&2 (80:20) of the US-origin and Latin America-origin fell by $40/mt each cfr Chattogram from Jan 15. 
  • In the bulk market, offers have dropped by $45-55/mt from their peak in the first half of January. 
  • Indian mills offered Sponge iron cfr Benapole down by $25-30/mt from the prior week. 
  • The weekly index for shipbreaking scrap equivalent to P&S dropped by BDT2,750/mt ($32/mt) ex-works. The index for domestic HMS 1&2 (80:20) dropped by BDT3,625/mt ex-yards Chattogram. 
  • Domestic billet ex-works Chattogram index dropped by BDT1,250/mt Friday. The index for large steelmakers’ rebar, Friday, dropped by BDT750/mt ex-works. Despite squeezed margins, mills offered discounts of BDT1,000-1,500/mt to encourage sales. 
  • Medium-scale mills in Dhaka lowered prices for rebar to secure orders from infrastructure projects. 
  • For shipbreakers, offers for scrapped vessels fell by $50/ldt from their peak levels last week. ($1= BDT84.68)

 

Metallics

 

CIS 

  • The weekly Davis Index for CIS basic pig iron fell by $14/mt fob Black Sea basin on Friday amid sluggish demand and a downtrend in the global ferrous scrap market.
  • Deals were sporadic with suppliers decreasing their offers to the US from $600/mt fob to $580-585/mt cfr. However, buyers’ activity remained low and bids were reported at $530-550/mt cfr. An international trader was heard to have sold a cargo of the CIS material to the US at $550/mt cfr, but further details of the transaction were not available at the time of publication.
  • Negotiations in the Italian imported pig iron market did not result in deals as buyers and sellers could not close the gap between offers, which varied at $580-585/mt cfr, and bids, which did not exceed $550/mt cfr. As a result, the weekly Davis Index for CIS pig iron declined by $5/mt cif Italy.
  • A Russian exporter sold around 3,000mt of pig iron to Western Europe at $570/mt fob Baltic Sea recently. 
  • The lowest bids for CIS pig iron were reported from Turkey, where importers were asking for the material at below $500/mt cfr this week. 

 

US

  • The weekly Davis Index for basic pig iron (BPI) ticked down by $4/mt cfr New Orleans port on Thursday as activity slackened over the past two weeks following more than 10 weeks of strong sales and price surges.
  • No new direct BPI deals to the US have been reported. The next transactions will likely entail late May delivery with prices expected to fall compared with the peaks attained on Jan 7. New offer levels remain near those from last week but are being met with little consumer interest. 
  • Demand for BPI has weakened allowing supply to catch up with interest levels for new orders. Although prices are expected to soften, it may only be temporary as some sources suggest that Chinese demand is projected to rise after a good portion of BPI tonnage sold to China was redirected to alternate destinations.
  • As some of the latest US sales were a result of material resale from China to US consumers in need of prompt shipments, the most recent BPI bookings to the US from Brazil and CIS stand around the latest peak of $570-575/mt cfr Nola. 
  • The Davis Index for nodular pig iron (NPI) imports moved down by $10/mt cfr Nola. The material remains in tight supply, but the latest offers and bids heard for NPI have ranged from $630-660/mt cfr Nola with offers indicating late Q2 delivery. 
  • The weekly Davis Index for US hot briquetted iron (HBI) imports dropped by $15/mt cfr Nola. New offers have not been reported and the latest price evaluation for the grade compares assumed buyer interest with price outlook on other material.

 

India

  • Most steelmakers have stayed away from Sponge iron purchases as they found present price levels unviable. Producers were thus pressured to lower their asking prices.
  • The index for Sponge iron fell by Rs2,300/mt del Mandi Gobindgarh mill and by Rs1,925/mt del Mumbai mill in a week.

 

India semi-finished and finished steel

  • The daily Davis Index for billet in Mumbai decreased by Rs4,000/mt ($54.86/mt) from the previous Friday, in line with the fall in imported and local scrap prices along with rebar prices. The index for rebar also declined by Rs4,000/mt amid moderate demand throughout the week.
  • In Raipur, the daily index for billet was down by Rs3,500/mt ($48.01/mt) from last Friday following a fall in rebar prices. The daily index for rebar dropped by Rs3,000/mt ($41.15/mt) due to limited sales.
  • In Mandi Gobindgarh, the daily index for ingot decreased by Rs500/mt ($6.85/mt) from the previous Friday, in line with the fall in local scrap prices.
  • In Durgapur, the bi-weekly index for billet slumped by Rs2,500/mt ($34.29/mt) on Thursday compared to the previous week, in sync with the fall in rebar prices. The bi-weekly index for rebar was down by Rs3,000/mt over the week.
  • In Chennai, the bi-weekly index for billet down by Rs3,500/mt on Thursday compared to the previous week amid a fall in imported scrap and sponge prices. ($1=Rs72.96)
  •  

Shipbreaking 

  • Shipbreaking prices declined amid continuous lack of demand for finished steel with the daily Davis Indexes for 8Ani and 10Ani sliding by Rs1,250/mt ($17.13/mt) each compared to last Friday amid limited buying.
  • The daily Davis Index for 2kg plates declined by Rs1,450/mt over the week due to a prolonged slowdown in construction and infrastructure activities. The market sentiment looks bearish. 
  • The Davis Index for HMS attachments and Melting fell by Rs1,650/mt each amid limited activity from Friday last week. ($1=Rs72.96)

 

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