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Ferrous market update: January 25-29

Ferrous Market Update 01/29/2021

 

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) remained unchanged on Friday as most market participants chose to hold off negotiations until next week.
  • Turkish mills are expected to be in the market next week and most suppliers have decided to wait until mills step in to book cargoes for March shipment.
  • In the domestic market Turkish mills continue to drop purchase prices for shipbreaking scrap, which settled at $405/mt delivered on Friday, down by $5/mt from the prior day.
  • The daily domestic spot rebar price in Turkey declined by TRY40-70/mt ($5.50-10/mt) on Friday amid currency fluctuations, while the daily exported rebar prices were flat. ($1=TRY7.32)
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Turkey domestic

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey dropped by TRY100/mt ($13.50/mt) on Monday due to weak demand for the material and a slump in the imported ferrous scrap market.
  • Purchase prices for shipbreaking scrap in the Izmir region dropped by $30/mt over the week amid a bearish market. ($1=TRY7.39)

CIS

  • The weekly Davis Index for A3 scrap fell by $26/mt fob Baltic Sea and by $30/mt fob Black Sea on Monday in a bearish market.
  • Trading, especially to Turkey, was on hold amid a lack of buyer interest. Turkish mills are currently focusing on rebar sales and anticipate lower offers for scrap, but most Russian recyclers chose to follow the cues of exporters from other countries and stepped back instead of lowering their offer prices.
  • Collection prices for ferrous scrap decreased due to the weak export market and the weekly Davis Index for A3 scrap declined by RUB1,650/mt ($22/mt) delivered St Petersburg dock and by RUB1,500/mt ($20/mt) delivered Rostov-on-Don dock on Monday. ($1=RUB75.70) 
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Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region dropped by €13/mt ($16/mt) on Tuesday amid a bearish export market and sluggish demand.
  • Ferrous scrap exporters from the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) continued to cut collection prices as Turkish importers remained inactive and waited for lower prices. (€1 = $1.22)
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UK dockside

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices edged down by £16-19/mt ($22-26/mt) delivered dockside, respectively, on Tuesday as dockside ferrous scrap buyers followed through with warnings of reducing purchase prices.
  • Turkish HMS 1&2 (80:20) import prices have dropped by $42.50/mt from their Jan 12 peak of $482.50/mt to the current trough of $440/mt cfr Turkey.
  • One UK-based merchant supplier seemed accepting of the recent price cuts, saying “dockside prices didn’t go up as much as seaborne, so they haven’t come down as much.”
  • Another independent British bulk exporter said that major processors had managed the situation well, given that export markets were “not that depressed” to warrant local price cuts. 
  • The weekly indexes for north and south UK OA (Plate & Structural) fell by £22-30/mt delivered dockside, respectively, on Jan 26, while the north and south UK 5A/5C (frag feed) ferrous scrap indices declined by £21-29/mt delivered dockside. (£1=$1.37)

 

Spain

  • Davis Index’s weekly northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices fell by €8/mt ($10/mt) cfr, respectively, on Friday.
  • Indicative levels for Spanish HMS 1&2 (80:20) ferrous scrap import benchmarks declined as buyers dropped their bids in response to weaker prices in major trade routes.
  • Suppliers stubbornly maintained their offer levels close to the last recorded transactions and, as a result, no deals were concluded over the past week given the wide bid-offer spread.
  • One Spanish ferrous scrap trader commented that some mills had more inventory than they could currently consume, hence their relatively firm stance with lower bids.
  • Another buyer stated that one mill in Spain was idled until the middle of February for the installation of a new walking beam furnace.
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices also declined by €18/mt fob, respectively, on Jan 29. (€1=$1.21)

 

US dockside

  • US East Coast and Houston dock collection prices for ferrous scrap continued to trend down for the second consecutive week, falling by $35-40/gt, consistent with weakening export activity and declining domestic market sentiment.
  • Export prices to Turkey from the US for HMS 1&2 (80:20) have been dropping since the first week of January and fell by $67.31/mt to $414.80/mt cfr on Jan 26 compared to a highpoint of $482.11/mt cfr on Jan 11.
  • The latest US domestic ferrous scrap predictions also point toward price drops during February trading, some as high as $60/gt for grades such as shredded amid improved flows for the material and healthier mill inventories.
  • Export yard buying prices for #1 HMS on the East Coast are averaging near $340-345/gt, with some export yards asking as low as $330/gt for local tons on Tuesday. Declines represent about $40/gt or more for most sellers since last week and involve a full range of deals between $330-360/gt. 
  • Industry participants envision further declines of about $20-40/gt are on the way, based on the most recent quotes for shredded container exports, which have fallen by $65/gt or more since January’s start.
  • Larger sellers report holding onto material in hopes for a price rebound in February. Higher-tonnage sales to bulk exporters have paused.
  • In Boston, the weekly Davis Index for export yard #1 HMS fell by $38/gt and P&S 5ft dropped by $37/gt delivered Boston dock. Shredder feed declined by $30/gt delivered. 
  • The weekly Davis Index for export yard buying prices in New York moved down by $39/gt delivered for #1 HMS, by $40/gt delivered for P&S 5ft, and by $28/gt delivered for shredder feed. 
  • In Philadelphia, the Davis Index for export yard collection prices of #1 HMS dropped by $37/gt delivered and P&S 5ft fell by $35/gt delivered Philadelphia dock. Shredder feed declined by $28/gt delivered.
  • In Houston, the weekly Davis Index decreased by $14/gt for #1 HMS and P&S 5ft moved down $21/gt delivered Houston dock. Shredder feed dropped by $18/gt delivered. 
  • On the West Coast, export yard ferrous scrap prices declined in San Francisco and Portland and remained unchanged in Los Angeles. 
  • Asian buyers are reportedly quiet with most scrap sellers not expecting much activity until after the Lunar New Year holiday. Strength is expected in scrap into Spring. Japanese export offers have also softened and large South Korean buyers are seeking volumes at lower bids. 
  • In Portland, the prices for #1 HMS and P&S 5ft fell after docks began to reduce buying prices for scrap dealers who had not ensured guaranteed dock buying rates. The weekly Davis Index for #1 HMS declined by $15/gt delivered, P&S 5ft dropped by $17/gt delivered, and shredder feed fell by $21/gt delivered. 
  • In the US domestic scrap market, which more directly competes with docks in the Pacific Northwest, prime grades are expected to decline by $10-20/gt against January settled prices, and #1 HMS and P&S 5ft may decrease by $30-50/gt with a steeper decline for shredded due to inventory overhang. Market participants commented on the inevitability of dock prices falling further in a week on export and domestic cues.
  • In San Francisco, some dealers were spared the full decline last week with flat pricing while others began to receive softer prices. This week, however, docks officially provided notice of prices reducing by around $34/gt. Thus, the Davis Indexes for #1 HMS and P&S 5ft fell by $13/gt delivered San Francisco docks while shredder feed decreased by $12/gt delivered. 
  • The weekly Davis Indexes in Los Angeles declined last week but were flat on Tuesday. Several buys were noted at stronger prices than the index for P&S 5ft as the dock sought to shore up volumes. The weekly indexes remained unchanged #1 HMS, P&S 5ft, and shredder feed.
  • Buyers are adopting a wait-and-see approach given the expectation that Turkey may purchase imported scrap of HMS 1&2 (80:20) at prices lower than $400/mt cfr over the week given the recent ex-UK buy at $408/mt cfr on the grade and the rumor of sufficient offers to Asia and Turkey from US exporters. 

 

US containers

  • The US containerized ferrous scrap prices fell across both coasts for the third straight week with a sharper drop on the West Coast on Thursday. 
  • West Coast containerized scrap prices plummeted by $25-43/mt on Thursday, after declining by $33-43/mt last week and by $1-10/mt in the week prior. On the East Coast, container prices dropped by $28-38/mt on core grades last week, but the decreases were more tempered at $10-18/mt on major grades this week. Machine turnings fluctuated more widely and have retained the interest of buyers through the week. 
  • Lower Japanese export offers, reduced purchases from Asian buyers, a wait-and-watch strategy until more information is received after the Chinese Lunar Festival holiday, and the still recovering, steel markets in South and Southeast Asia, are some of the factors that have led to price declines in the US containers market. 
  • The weekly Davis Indexes in New York fell by $12/mt for #1 busheling, by $10/mt for HMS 1&2 (80:20), by $18/mt for P&S 5ft, and by $18/mt for shredded on limited interest for the higher grades. Machine shop turnings decreased by $2/mt as interest from some buyers was reported despite the downtrend in overall scrap prices.
  • In Los Angeles, the weekly Davis Indexes for #1 busheling decreased by $23/mt, HMS 1&2 (80:20) and P&S 5ft both fell by $31/mt and shredded declined by $30/mt.
  • Market participants throughout the West Coast report limited buyers, some easing in container availability, and anticipation of a price rebound. Deals in Los Angeles ranged from $330-355/mt fas over the past week with several suppliers reluctant to sell at the lower end of the range. For now, deals are being reported primarily for low volumes. 
  • In San Francisco, the indexes declined by $25/mt for #1 busheling, by $37/mt for HMS 1&2 (80:20), and by $35/mt for both P&S 5ft and shredded on fas basis.
  • The Davis Indexes in Seattle also decreased across the board with #1 busheling dropping by $40/mt fas, HMS 1&2 (80:20) falling by $39/mt fas, P&S 5ft decreasing by $43/mt fas, and shredded declining by $39/mt fas.
  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) fell by $24.11/mt to $415.89/mt cfr on Thursday compared to $440/mt cfr on January 21 for a cumulative drop of $62.86 in two weeks and $65.36/mt since December 30 when the index was trending at $481.25 cfr. 
  • Turkish mills moved rapidly to push prices down but buying levels are expected to increase with the latest increased interest in scrap and firmer prices by sellers on expectations of a rebound in February. 

 

Mexico

  • Mexico’s domestic ferrous scrap prices fell in the Central and Bajío regions but rose in the North on demand strength on Friday.
  • Overall, prices in Mexico may fall between MXN800-1,000/mt ($39-$48.8/mt) in February, mirroring the anticipated drop in the US domestic ferrous scrap market of $40-50/mt.
  • Scrap prices in the region began climbing down after prices to Turkey fell by almost $70/mt. The daily Davis Index for HMS 1&2 (80:20) stood at $415.89/mt cfr Turkey on Friday, down from $481.25/mt cfr at the beginning of January.
  • In Central Mexico, the weekly Davis Indexes for #1HMS, P&S 5ft, shredded, machine shop turnings, and #1 busheling all fell by MXN300/mt delivered Mexico consumer and dropped by
  • MXN200/mt delivered in Bajío.
  • In North Mexico, the weekly Davis Indexes for #1 HMS rose by MXN135/mt delivered Mexico consumer, P&S 5ft climbed by MXN45/mt delivered, shredded increased by MXN105/mt delivered, machine shop turnings rose by MXN155/mt delivered, and #1 busheling increased by MXN65/mt delivered. ($1=MXN20.46)

 

Japan  

  • Tokyo Steel cut ferrous scrap price for the eighth time in January and lowered ferrous scrap purchase prices by JPY1,000/mt ($9.5/mt) delivered plant on Friday, while prices for Utsunomiya were lowered on Thursday. The price for Utsunomiya was lowered on Thursday. Tokyo Steel’s bids for #2 HMS stood at JPY38,500/mt ($367/mt) del Tahara, JPY38,500/mt del Okayama, JPY38,000/mt del Kyushu, JPY37,500/mt del Takamatsu, and JPY29,000/mt del Utsunomiya.
  • Japanese EAF makers are facing power shortages that have curtailed their operating capacity. Utsunomiya is under maintenance this week, lowering ferrous scrap demand in the regions.
  • Sluggish finished steel demand in Asian markets has pressured importers to further reduce bids for Japanese ferrous scrap by JPY5,000/mt ($47.6/mt) this week. Domestic ferrous scrap prices also declined from a week ago. South Korea’s Dongkuk mill bought Japanese #2 HMS down by JPY5,000/mt from the prior deal. Hyundai Steel is heard to have lowered its bid by JPY1,500/mt on Thursday.
  • Offers to Chinese mills fell by $50-60/mt from prior deals to $500/mt cfr Shanghai on Wednesday with no trades heard. Bids were at $440-450/mt. 
  • Traders indicated that suppliers are cautious of exporting to China due to delays in documentation and stringent quality checks of early Japanese scrap shipments at Chinese ports. China has resumed ferrous scrap imports under new grading standards from Jan 1. A bulk deal for US-origin shredded to China was confirmed on Tuesday. 
  • Chinese importers are negotiating for ferrous scrap from different destinations, said traders. Containerized scrap deals from South America were heard this week. Quality standards and grade checking at Chinese ports are a cause of concern for most exporters, who are cautiously tracking clearances of prior shipments before confirming deals. 
  • The decline in Japanese scrap prices could be short-lived, opined some market participants, as they expect prices to rise in February amid a global shortage of scrap and increased finished steel demand after the Chinese New Year holidays. 
  • The weekly Davis Index for Japanese #2 HMS fell by JPY5,050/mt fas. In the export market, the weekly index for the grade fell by JPY5,083/mt fob Japan with Dongkuk purchasing at a lower level on Wednesday.
  • Bids for Japanese #1 busheling (Shindachi) fell by JPY5,125/mt fob. The weekly index for the grade fell by JPY5,025/mt fob Japan. On Tuesday, the purchase price for US-origin HMS 1&2 (80:20) in Turkey fell by $25/mt from Monday hurting exporter sentiment.
  • The weekly Davis Index for HS and shredded, Wednesday, fell by JPY5,033/mt and JPY5,000/mt fas, respectively. Bids for HS and shredded heard at JPY37,400-37,800/mt fas.
  • Offers for HMS 1&2 (50:50) fell $25-30/mt cfr Vietnam this week, and the index for the grade fell by $27/mt cfr Haiphong. No deals were heard as buyers were cautious amid falling prices.
  • In Taiwan, the index for Japanese HMS 1&2 (50:50) fell by $28/mt cfr on bids declining to $395-400/mt cfr on Wednesday. ($1=JPY104.90)

 

South Korea  

  • Prices of containerized imported ferrous scrap fell amid slow finished steel demand. Also, a switch to bulk buying from Japan due to container shortage and vessel delays lowered containerized scrap prices.
  • Construction projects in the country have slowed amid a steep rise in the price of raw materials. 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 $45/mt cfr South Korea from the prior week. Bids were at $370-375/mt cfr with no deals heard this week.
  • The weekly Davis Indexes for P&S 5ft and #1 HMS, Wednesday, dropped by $40/mt and $38/mt cfr South Korea, respectively. The index for shredded fell by $38/mt cfr from the prior week. 
  • On Tuesday, Dongkuk Steel bought Japanese #2 HMS at JPY5,000/mt lower than the prior deal. 
  • Hyundai Steel booked 45,000mt of Japanese scrap on a fob basis on Wednesday. The steelmaker is trying to negotiate at even lower prices this week, said traders. Last week, bids for #2 HMS heard at JPY 39,500/mt fob.
  • Domestic scrap bids fell by KRW10,000/mt ($9/mt), Wednesday, with domestic Heavy A trading at KRW420,000-425000/mt delivered Pohang in line with the drop in global scrap prices.
  • The Davis Index for domestic Heavy A fell by KRW15,000/mt and KRW35,000/mt delivered Incheon and Pohang, respectively. Mills could reduce their bids for domestic scrap next week, but the decline could be lesser than that in the seaborne market on tightening domestic supplies. 
  • The weekly Davis Index for domestic Light A fell by KRW30,500/mt delivered Pohang mill. Trades for the grade heard at KRW400,000-410,000/mt on Monday. Domestic scrap suppliers are expecting smaller mills to purchase this week before their scheduled 10-15 days’ maintenance in February. Demand is expected to fall until Lunar New Year as mills with high inventory and scheduled maintenance stay away from the market. ($1=KRW1,117)

 

Taiwan  

Taiwanese mills lowered bids amid sluggish finished steel demand and weak global cues. The Davis Index for containerized US-origin HMS 1&2 (80:20) remained unchanged on Friday, while fell by $39/mt from prior Friday. Some traders revised bids to $365/mt, while exporters held offers at $370-375/mt to clear inventory and avoid a cash crunch. Few deals for USWC HMS 1 & 2 (80:20) heard at $370/mt cfr on Friday. 

Taiwanese mills closely tracked Korean bids which fell by JPY5,000-6,000/mt ($48-57.6/mt) from prior deals. Buyers said mills have lowered booking volumes and adopted a wait-and-watch strategy until the Chinese 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 and shredded fell by $52/mt, $46/mt, and $51/mt and/mt $398/mt cfr, $380/mt cfr, and $389/mt cfr, respectively. Amid a fall in ferrous scrap offers from Japan and a drop in Turkish purchase prices. Most mills have turned cautious. 

Some Japanese HMS 1&2 (50:50) offers fell $50-60/mt lower than last week, but no deals heard due to a lack of firm bids in a falling market. Importers expect a rise in Chinese buying to resume post-Lunar New Year holidays but till then prices could remain low. Buyers are staying away from long transit containerized shipments and instead preferring small bulks from Japan and other Asian destinations.

With Turkish buyers lowered bid by $69.25/mt cfr on Wednesday from Jan 4. But later in the week prices rose by $4/mt cfr on Thursday. The uptick indicates that scrap prices will firm up post-Chinese New Year holidays, said Asian traders. 

On Monday, offers for HMS 1&2 (90:10) from Central America in FEU heard at $410/mt cfr, while bids lagged at $390-395/mt. 

Feng Hsin Steel reduced rebar and ferrous scrap prices by TWD800/mt ($28.5/mt) and TWD500/mt for February deliveries on Monday. After the revision, the steelmaker’s base price for rebar fell to TWD18,100-18,200/mt ex-southern mills. 

The weekly Davis Indexes for domestic HMS 1&2 (80:20) fell by TWD500/mt delivered South Taiwan and North Taiwan mills, respectively. Importers indicated that domestic scrap prices are still cheaper than imported.  ($1=TWD28)

 

China

  • In China, Shagang Steel’s ferrous scrap purchase prices fell by CNY5/mt ($0.78/mt) on Monday from the prior week. Semi-finished steel prices fell due to sluggish demand for finished steel and production cuts due to pollution. Iron ore prices fell to $168.5/mt on Friday, down by $4/mt from the prior week. Prices are likely to stabilize after Lunar New Year on rising demand and lower inventories.
  • Traders overseas expect Chinese demand for ferrous scrap to sustain in February after Japanese scrap offers were reduced to $465-470/mt. They indicated offers are attractive as the difference between domestic and imported scrap contracted to $15-20/mt from $50-60/mt in the first week of January. No small bulk deals heard this week, but Japanese exporters expect an increase in purchases after Chinese New Year.
  • The weekly Davis Index for the HMS 1&2 (80:20) fell by CNY5/mt delivered mill. Deals for P&S 5ft heard at CNY4,050/mt this week. The market was bearish due to limited buying, cold weather, rising COVID-19 cases, and elevated steel inventories.
  • On Tuesday, prices for Q235 150mm square billets in Tangshan rose by CNY20/mt to CNY3,830/mt ex-works including 13pc VAT from the prior week. Southeast Asian billet export offers were under pressure with buyers from the Philippines bidding at $580/mt, while offers at $600/mt this week. 
  • A bulk deal for US-origin shredded confirmed at $430/mt cfr China on Tuesday. Chinese importers are negotiating for ferrous scrap from different destinations, said traders. Containerized scrap deals from South America heard this week. Quality standards and grade checking at Chinese ports are a cause of concern for most exporters, who are cautiously tracking clearances of prior shipments before confirming deals. ($1=CNY6.4)
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Vietnam 

  • In the containers market, the weekly index for US-origin HMS 1&2 (80:20), Thursday, settled down by $45/mt cfr Vietnam from the prior week. Vietnamese mills lowered bids to $375-380/mt, while offers fell to $380-385/mt. Traders expect offers to fall as mills have turned cautious. Finished steel prices in the domestic market have soared raising input costs for the infrastructure and real estate sector in most Asian countries. Higher prices have stalled or slowed construction activities.
  • The weekly index for P&S 5ft and shredded fell by $35/mt and $37/mt cfr, respectively, on Thursday, amid lower bids. Few deals for P&S 5 ft in containers heard at $410/mt cfr on Wednesday.
  • In bulk, Japanese #2 HMS offers fell by $50-60/mt cfr from the prior week, but no deals confirmed. 
  • The weekly Davis Index for HMS 1&2 (80:20) fell by VND16,667/mt delivered South Vietnam inclusive of taxes. Mills reduced bids for domestic scrap on weak global cues. A few deals for HMS 1&2 (90:10) heard at VND8,60,0000/mt ($374/mt) delivered South Vietnam on Tuesday.
  • Vietnam’s witnessed an upsurge in ferrous scrap import in 2020 amid active restocking on strong steel demand. The country imported 5.85mn mt ferrous scrap in 2020, up by 13pc from the prior year’s 5.2mn mt. ($1=VND22,980)
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Indonesia

  • Indonesian mills increased enquiries for imported scrap, but yards have still not registered according to Indonesia’s new import policy, thereby limiting offers. Traders are negotiating deals from Hong Kong, Australia, Singapore, and the US. 
  • Buyers expect ferrous scrap prices to drop until Lunar New Year. The weekly Davis Index for HMS 1&2 (80:20) fell $31/mt cfr Jakarta. Bids fell by $30-35/mt to $380-385/mt cfr Jakarta on Thursday.
  • The indexes for P&S 5ft and shredded fell by $23/mt and $30/mt cfr Jakarta, respectively. Offers for Singapore-origin P&S 5ft heard at $420-30/mt cfr Jakarta, down by $30-40/mt from the prior week. The weekly Davis Index for #1 busheling fell by $24/mt cfr on low bids.

 

Thailand

  • The weekly Davis Index for domestic HMS 1&2 (80:20) delivered Rayong mill remain unchanged 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 February. Several infrastructure projects are expected to commence following a drop 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($414/mt) and THB12,600/mt, respectively, on Monday. A leading Thai steelmaker is expected to raise HMS 1&2 (80:20) price next week by THB500-700/mt. ($1=THB30)

 

Malaysia 

  • The weekly indexes for HMS 1&2 (80:20) rose by MYR105/mt ($26/mt) and MYR100/mt delivered western mills and eastern mills inclusive of taxes, respectively.
  • Malaysian steelmakers also raised bids on Monday in anticipation of a rise in steel demand post-Lunar New Year holidays and amid fear of domestic scrap shortage. Mills preferred competitively priced domestic scrap over imports due to vessel delays and higher freight rates. Importers are closely watching Turkish and Chinese scrap purchases ahead of new bookings. ($1=MYR4)

 

India 

  • Imported scrap prices in India were mixed this week. Billet export prices were unattractive for restocking scrap at higher levels. Most mills preferred competitively priced domestic scrap. 
  • The Davis Index for containerized shredded, Friday, settled up by $1.25/mt cfr Nhava Sheva from Wednesday. Prices dropped by $6.25/mt from the prior Friday.
  • Offers for UAE-origin HMS rose, anticipating a recovery in demand from mills with limited ferrous scrap inventories. HMS from Dubai was a preferred option for most buyers on shorter delivery times.
  • The Davis Index for UAE-origin HMS 1&2 (80:20) cfr Nhava Sheva, Friday, settled unchanged from Jan 22. 
  • Imported HMS remains higher than the domestic HMS and sponge iron equivalent delivered Mumbai consumer.
  • The daily Davis Index for US-origin HMS 1&2 (80:20), Friday, rose by $3.25/mt cfr Nhava Sheva. 
  • Trades for grades like busheling and P&S are still halted on tight supply. Turning scrap and West and East African HMS with CI-GI traded at $335-345/mt cfr Mundra.
  • Indian mills lowered billet export offers by $20-25/mt fob India from last week. Global billet prices dropped to $535-540/mt fob Iran and $580-590/mt cfr SE Asia. 
  • In China, rising steel inventories and lull ahead of the New Year holidays continued to put downward pressure on the steel futures. A few mills are still keen to secure raw materials eyeing a strong comeback post-holiday. ($1=Rs72.92)

 

India domestic

  • Domestic ferrous scrap prices declined on Friday. Mid-week, prices had gained as sellers tried to raise their offers. But as anticipated by most mills, the market was unable to absorb the rise as finished steel demand is still under pressure.
  • The index for HMS 1&2 (80:20) remained unchanged in Mumbai. On Wednesday, prices had gained Rs1,000/mt only to drop over the next two days. 
  • In Mandi, the index for HMS 1&2 (80:20) rose by Rs600/mt from last week, but from Thursday it declined by Rs750/mt

 

Pakistan  

  • Imported ferrous scrap offers Friday turn up marginally in Pakistan mirroring the bulk price trend. Mills are, however, exercising caution amid short-term volatility ahead of the Chinese New Year holidays. 
  • The daily Davis Index for containerized shredded, Friday, turned up by $3.75/mt cfr Port Qasim. Prices fell $6.25/mt from the prior week. 
  • The daily index for US-origin HMS 1&2 (80:20) fell $18.75/mt cfr Port Qasim from a week ago.
  • Dubai-based suppliers turned down low bids from Indian and Pakistani buyers and raised offers by $15-20/mt. 
  • Trades for high-grade scrap remained limited amid short supply due to strong demand in suppliers’ domestic markets. 
  • The Davis Index for G-60 billet ex-works Punjab, rose by PKR3,500/mt. In Lahore, the weekly index for domestic Bala billet rose by PKR4,000/mt ex-works. 
  • Many cash-strapped mills cancelled discounts to increase cash flow and clear utility bills by month-end. Following prolonged resistance by end-users, rebar prices registered a drop this week. The weekly Davis Index for rebar dropped by PKR2,500/mt and PKR3,000/mt ex-works Karachi and in Punjab.
  • The weekly index for Art Pure Q toke increased by PKR3,000/mt ($19/mt) and those for Pure Q Toke (shredded) increased by PKR2,750/mt amid tight supply despite slow sales.  ($1=PKR160.40)

 

Bangladesh

  • Bangladeshi mills either placed very low bids or decided to stay away from container trades. Domestic steel demand slowed on month-end. 
  • The daily Davis Index for containerized shredded, Friday, fell by $17.5/mt cfr Chattogram from Jan 22. Leading mills have ample inventory as they have booked large tonnages in bulk for February deliveries. 
  • Trading in containerized P&S and #1 busheling stayed paused amid a lack of buyers for these grades. Indexes for the grades were down $18/mt and $15/mt, respectively. 
  • The Davis Index for containerized HMS 1&2 (80:20) of the US-origin and Latin America-origin cfr Chattogram, dropped by $20/mt each, from Jan 22. Suppliers refused to accept trades amid strong domestic realizations. Australia and the UK origin HMS 1&2 (80:20) dropped over $15/mt from the prior week.
  • Offers for Japanese #2 HMS in small bulk dropped $10-15/mt on Friday from the 15,000mt deal reported at $425/mt cfr Chattogram early this week. 
  • Indian mills offered Sponge iron cfr Chattogram, down by $5-10/mt from the prior week. 
  • The weekly index for ship scrap equivalent to P&S turned up by BDT750/mt ($9/mt) ex-works. Friday, typically a lull day, saw a few yards active in the market.
  • Domestic billet ex-works Chattogram on weekly index dropped by BDT250/mt on Friday. Despite squeezed margins, mills offered discounts of BDT1,000-1,500/mt to encourage sales of rebar. Small scale mills offered rebar below BDT54,000/mt ex works.($1=BDT84.75)

 

Metallics

 

CIS 

  • The weekly Davis Index for CIS basic pig iron tumbled by $43/mt fob Black Sea on Friday amid a downtrend in the global ferrous scrap and steel product markets.
  • Month-end trading remained slow as demand for the material was seen only in the US. 
  • Suppliers had to accept lower prices after importers referred to the bearish scrap and steel products market. A Russian supplier was heard to have struck a deal to the USA at $530/mt cfr, but the cargo was sold in parts to different buyers.
  • The weekly Davis Index for CIS pig iron plunged by $35/mt cif Italy on Friday on sporadic negotiations, which did not result in transactions. Italian buyers were inactive in anticipation of a further price decrease.
  • Demand for CIS pig iron was minimal in China and Turkey with no firm bids reported. Importers from both countries preferred to watch the development in the ferrous scrap market, considering possible bookings of it. 

 

US

  • The weekly Davis Index for basic pig iron (BPI) fell by $52/mt cfr New Orleans port on Thursday as fresh cargoes for March shipment were booked to the US from Brazil at lower rates.
  • Activity for BPI has picked up after a brief lull following the early-January price peaks. Prices for recent deals ranged wide this week with the lowest values marked on high-phosphorus material and higher-priced deals for better grades entailing prompt shipment. 
  • A lower-valued, higher tonnage BPI transaction concluded at $480/mt fob Brazil, which is around $505-510/mt cfr Nola, albeit discounted from standard pricing. A higher-priced deal was heard near $550/mt cfr Nola, though market participants view BPI value closest to $520/mt cfr factoring in the full gambit of details.
  • Brazilian producers are holding firm on prices as China has been making inquiries and is anticipated to refuel the market when the country begins purchasing the latest and upcoming BPI output. Market participants suggest that US consumers are still willing to pay around $530-540/mt cfr Nola or more this week.
  • The Davis Index for nodular pig iron (NPI) imports moved down by $62/mt cfr Nola. There is a low activity for the grade that also holds limited availability, but the latest offers and bids heard for NPI have ranged from $560-600/mt cfr Nola with delivery entailing May or June. 
  • The weekly Davis Index for US hot briquetted iron (HBI) imports dropped by $40/mt cfr Nola. Offers or bids have not been reported recently, however, the price estimation has been modified for the material based on price moves for other grades and the latest consumer interest.

 

India

  • Sponge iron producers were unwilling to lower their asking prices on Friday. Most mills refused to budge and stayed away from the market. Sponge iron prices could fall by Rs1,000-1,500/mt in the coming week, said traders. 
  • The index for Sponge iron declined by Rs425/mt del Mumbai consumer and by Rs300/mt del Mandi Gobindgarh from a week ago. ($1=Rs72.93)

 

India semi-finished and finished steel

  • The daily Davis Index for billet and rebar in Mumbai was unchanged from the previous Friday. Rebar demand was moderate as buyers lowered volumes at high prices. The market could be silent on the weekend ahead of India’s Union budget on Monday, Feb 1.
  • In Raipur, the daily index for billet fell by Rs500/mt ($6.85/mt) ex-works from the previous Friday, following a drop in rebar prices. The daily index for rebar dropped by Rs500/mt amid healthy sales volumes.
  • The daily index for ingot in Mandi Gobindgarh decreased by Rs500/mt from the previous Friday in-line with a fall in local scrap prices.
  • In Durgapur, the bi-weekly index for billet fell by Rs700/mt ($9.6/mt) on Thursday compared to the previous week in-line with a fall in rebar prices. The bi-weekly index for rebar declined by Rs800/mt ($10.97/mt)
  • The bi-weekly index for billet in Chennai fell by Rs2,000/mt ($27.43/mt) on Thursday compared to the previous week amid a significant fall in sponge prices. ($1=Rs72.90)

 

Shipbreaking 

  • Shipbreaking prices witnessed a slight uptick on Friday amid a temporary pick-up in demand during the week. The daily Davis Index for 4Ani rose by Rs50/mt ($0.69/mt) compared to the prior week amid limited buying.
  • The daily Davis Index for 0.5kg and 1 kg plates rose by Rs100/mt each. However, the demand for finished steel remains sluggish as builders and contractors are unable to keep up with the rising input cost. 
  • The Davis Index for HMS attachments and Melting fell by Rs1,000/mt each. Prices declined amid a bearish market sentiment on weak finished steel demand. ($1=Rs72.85)

 

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