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Ferrous Market Update Jul 5-9

Ferrous Market Update 07/09/2021

 

Turkey

 

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) decreased by $2.75/mt on Friday following postponed bookings.
  • Trading remains subdued in the Turkish ferrous scrap market with most mills delaying purchases in anticipation of lower prices as they believe there are enough cargoes available for August shipment from the US, the Baltic region, and the UK.
  • On the other hand, some scrap suppliers have stepped back from negotiations with Turkish mills to focus on their respective domestic markets where they are likely to strike deals at a higher price. Others prefer to evaluate the market conditions amid anemic collections for August shipment.
  • Spot rebar prices in the Turkish domestic market remained unchanged on Friday. ($1=TRY8.66)

 

Turkey domestic

 

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey climbed by TRY2/mt after one mill raised its purchase price.
  • Kardemir announced new purchase price for DKP grade on Jul 1, increasing it by TRY100/mt, while the other steelmakers kept their purchase prices at previous levels.
  • Purchase prices for shipbreaking scrap in the Izmir region remained unchanged for the sixth consecutive week. ($1=TRY8.68)

 

CIS

 

  • The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap declined by $3/mt in the Baltic Sea and remained unchanged in the Black Sea on Monday.
  • Some Russian suppliers chose to sell to Turkey at lower prices last week so that they could ship the material in July before the country’s new export duty of €70/mt comes into effect. An exporter from St Petersburg closed a deal with an Izmir-based mill at $495/mt cfr for HMS 1&2 (80:20) and a recycler from Arkhangelsk reached an agreement with a Marmara-based mill at $504.50/mt cfr for HMS 1&2 (95:5).
  • Suppliers from Rostov-on-Don refused to sell below $475/mt cfr Turkey, because of which, no transactions were reported despite numerous inquiries from mills in the second half of last week.
  • Collection prices fell in Russia with the weekly Davis Index for A3 scrap decreasing by RUB1,175/mt in St Petersburg dock and by RUB1,650/mt in Rostov-on-Don dock. ($1=RUB73.53)

 

 

 

Europe

 

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region increased by €11/mt on Tuesday amid slow inflow of the material.
  • Ferrous scrap suppliers from the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) raised collection prices, competing for the material with European mills, which pay higher prices.
  • Offers from the ARAG region remain scarce, while demand for scrap in Turkey is improving. European exporters believe that Turkish mills are yet to purchase up to 40 cargoes for August shipment and will have to increase their bids to secure enough material. (€1 = $1.19)

 

UK dockside

 

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices were unchanged delivered dockside on Tuesday with bulk exporters waiting for cues from the seaborne market.
  • A bulk processor was heard to have paid up to £275/mt for HMS 1&2 (80:20) on a collected basis, which would translate to a dockside delivered price of around £285/mt. However, the quality of that material was closer to HMS #1 grades than the “inferior” HMS 1&2 (80:20) specifications. 
  • Most market participants have had their attention diverted to monthly negotiations with domestic smelters, which were heard to be settling anywhere between £5-15/mt up on last month. 
  • A UK-based ferrous scrap trader commented that local mills tend to settle quicker if they expect a material increase in prices is on the horizon. 
  • The weekly indices for north and south UK OA (Plate & Structural) also held unchanged delivered dockside during the week as did Davis Index’s weekly north and south UK 5A/5C (frag feed) ferrous scrap indices. (£1=$1.39)

 

Spain 

 

  • Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk weekly ferrous scrap indices nudged €3/mt cfr ($4/mt) higher on Friday. 
  • Spanish ferrous scrap import prices nudged higher from recent lows over the past week, despite a significant arbitrage building between local and seaborne markets. The equivalent local HMS 1&2 (80:20) grades (E3) are not available for anything lower than €410/mt on a delivered mill basis. 
  • A Spanish-based ferrous scrap trader commented that they would be a large buyer of seaborne material at these levels if they were a northern Spain-based steel producer. 
  • Import prices are likely to have been handicapped by relatively low UK fob prices, given that some bulk exporters are rumoured to be sitting on large piles of inventory. 
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices dropped by €5/mt fob during the week. (€1=$1.19)

 

Spain domestic

 

  • Davis Index’s July E1 (old thin), E3 (old thick), and E40 (shredded) indices jumped by €20-25/mt ($24-30/mt) delivered mill following the conclusion of mill-yard negotiations in mid-July. 
  • Small bulk import prices have remained relatively stagnant by comparison given the large quantities rumoured to be available in the shortsea market.
  • Some UK-based ferrous scrap suppliers are heard to have refused to trade at current levels as they feel the material is undervalued. As a result, some Spanish steel mills have had to rely on local merchants to secure sufficient volumes for their melting and smelting requirements. 
  • Surging domestic rates are also partially linked to robust pricing action in the neighbouring continental ferrous scrap markets. For example, south German mills have been heard to have made sharp adjustments for monthly settlements in July, especially for bonus and prime scrap grades. (€1=$1.19)

 

US dockside

 

  • US East Coast collection prices for ferrous scrap slipped for the second successive week on healthy supply and slow export activity. Docks in Houston were also quiet in anticipation of domestic trading that will commence this week. 
  • Exports will likely pick up again when offers resume as suppliers await improved prices. Also, Turkish mill buyers are making inquiries and will soon require August shipment material.
  • The Davis Index for US HMS 1&2 (80:20) exports to Turkey has remained rangebound near $500/mt cfr for over a month. The extended monthly outlook shows mild change as compared to 501.82/mt cfr for the export grade on Jun 8. 
  • Dockside sales for #1 HMS on the East Coast are down by about $5/gt compared to last week, ranging between $365-395/gt based on dock location and base price from prior sales. Market participants witnessed a further price decay of about $10/gt last week on the East Coast and foresee another $5/gt drop soon.
  • In Boston, prices were flat or ticked down slightly and are still under surrounding docks. The weekly Davis Index for export yard #1 HMS fell by $2/gt and P&S 5ft inched down by $1/gt delivered Boston dock. Shredder feed is flat delivered Boston export yard. 
  • The weekly Davis Index for export yard buying prices in New York fell by $3/gt for #1 HMS delivered, P&S 5ft dropped by $2/gt and shredder feed moved down by $22/gt delivered New York dock. 
  • Shredder feed was in high demand in early June, which boosted the grade to collect premium prices in certain locations, although now the material has fallen back to typical levels.
  • In Philadelphia, the Davis Index for export yard collection prices moved down by $5/gt for #1 HMS delivered and P&S 5ft fell by $4/gt delivered Philadelphia dock. The index for shredder feed declined by $21/gt delivered. 
  • In Houston, the weekly Davis Index remained flat for all grades with #1 HMS, P&S 5ft and shredder feed unchanged at Houston dock. 
  • Docks on the US West Coast maintained the flat trend witnessed over the past four weeks on Tuesday. Prices on the East Coast slipped on the main heavy melt and structural grades while shredder feed lost more ground as premium pricing retreated. 
  • Internationally, dock prices rose in the EU but trended flat in the UK ahead of the domestic trading in that region. 
  • The daily Davis Index for US-origin HMS 1&2 (80:20) rose by $1.30/mt on Tuesday. Export cues provided by Turkish ferrous deals have maintained a $500/mt cfr level on HMS 1&2 (80:20). 
  • Market participants continue anticipating that most Turkish import scrap deals will trend at these levels and provide global market stability in July as some Asian markets grapple with new strains of COVID-19, monsoon weather, and higher steel prices on short bursts of active demand. 
  • The US domestic ferrous trading week is anticipated to begin on Jul 7 with movements of sideways to up $20-30/gt on June settled prices contingent on grade and region. In regions with sufficient inventories, #1 HMS may trade sideways. 
  • Iron ore prices are rangebound at a firm level of $221/mt cfr China after trending strong at $220/mt cfr last week. 
  • Japanese export offers continue firm despite some concerns over weaker demand later in the summer. Domestic scrap prices rose in Taiwan, South Korea, and Vietnam while smaller buyers such as Thailand and Malaysia encountered slight softness in their domestic markets. 
  • The weekly Davis Indexes in Portland for export yard scrap continued unchanged for #1 HMS, P&S 5ft and shredder feed delivered export yard. 
  • The San Francisco weekly Davis Indexes also trended flat with #1 HMS, P&S 5ft  and shredder feed unchanged. 
  • In Los Angeles, the Davis Index dock prices continued unchanged this week for #1 HMS, P&S 5ft and shredder feed delivered.

 

 

 

 

US domestic

 

  • Ferrous scrap trading largely wrapped up for the July cycle on Friday with secondary grades holding unchanged and prime grades increasing by $20/gt compared to June settled prices. The US ferrous markets followed a trend that began in Detroit on Wednesday with little variance, although some softness emerged for certain grades by Friday. 
  • In Chicago, prime grades #1 bundles and #1 busheling moved up by $20/gt delivered each. Secondary grades were flat with #1 HMS moving in the range of $470-475 although the full range includes $460-500/gt based on seller and starting point. P&S 5ft deals were struck at $510/gt for the most part with a few tons moving at $515/gt in Chicago. 
  • Philadelphia also saw a $20/gt increase in prime while secondary grades were flat with #1 HMS holding unchanged. 
  • In Detroit #1 busheling continues to transact at wide-ranged numbers of $620-675/gt with the index settling up $20/gt. P&S 5ft was flat while shredded remained unchanged. 
  • The Carolinas encountered an increase of $10/gt on #1 busheling and traded sideways on secondary grades. The monthly Davis Index for #1 busheling rose by $10/gt while #1 HMS, machine turnings, P&S 5ft, and shredded trended unchanged. 
  • In NE Arkansas, #1 busheling rose by $14/gt while #1 HMS declined by $2/gt as some mills used the opportunity to decrease prices in the latter part of the trading week. Machine turnings fell by $6/gt, but P&S 5ft and shredded were unchanged. 
  • The market’s early sentiment for August scrap trading foresees a potential softness in prices, especially for secondary materials, which are in ample supply and moved easily at sideways numbers throughout all markets. Still, a few areas reported some downward pressure on material such as machine shop turnings and #1 HMS in later deals. Some market participants point to very low inventories at the yards after July deliveries and not necessarily a spike in feedstock flows, which could result in sideways moves in August.

 

 

US containers

 

  • US containerized ferrous scrap prices continued trending up on the West Coast and were mostly rangebound with an upside on the East Coast on deal strength despite pushback from some buyers.
  • The US domestic scrap market began trading this week with mills trending at up $20/gt on prime grades such as #1 busheling and sideways on secondary grades against the June settled prices.
  • However, the East Coast is also encountering some downward pressure following some contraction in dock prices.
  • Some mills are purchasing smaller volumes and secondary grades such as #1 HMS are considered in ample summer supply. Suppliers have hardly experienced an increase in secondary grades. Any uptick will depend on grade and region.
  • Some sellers in the South are hoping for P&S 5ft to gain $5-10/gt in some transactions.
  • Indian mills have reduced production schedules and are evaluating the effect of COVID-19 information and effects on the markets and end construction, consumer activity. Bangladesh is encountering a flat buying market while Pakistan has raised some bid prices on domestic recovery.
  • The weekly Davis Indexes in New York for #1 busheling rose by $3/mt fas while HMS 1&2 (80:20) fell by $2/mt. Machine turnings remained unchanged. P&S 5ft and shredded regained from the $2/mt fall last week with an equal gain.
  • Some sellers sold shredded in a wide range despite some buyers, especially from India, withdrawing from the market. Buyers report firm selling numbers and overall scarcity of good quality scrap globally though some sellers and buyers have expressed the belief that prices may tick down next week.
  • In Los Angeles, the indexes for #1 busheling and P&S 5ft rose by $5/mt. HMS 1&2 (80:20) climbed by $6/mt as shredded increased by $4/mt.
  • Sellers report decent buying and trading activity with slightly better container availability in an environment of shorter scrap supply in comparison to previous summers. Buyers from Taiwan, South Korea, and Vietnam are actively quoting in the area. The LA dock has raised prices for sellers who can deliver larger tonnage.
  • Japanese export ferrous offers continue supported by unchanged domestic ferrous scrap prices.
  • San Francisco’s indexes rose for the second consecutive week by $3-8/mt with #1 busheling rising by $6/mt and HMS 1&2 (80:20) climbing by $8/m. P&S 5ft increased by $5/mt as shredded rose by $6/mt.
  • In Seattle too, the indexes rose by $4-7/mt after the gains of $4-5/mt in the prior week. The weekly Davis Indexes for HMS 1&2 (80:20) rose by $7/mt while #1 busheling, P&S 5ft, and shredded climbed by $4/mt.

 

Mexico

 

  • Ferrous scrap prices in Mexico spiked this week, with an average increase of MXN809/mt ($40.7/mt) in the three zones, as a result of increased activity in the construction sector.
  • Demand for shredded in the Bajío region remained robust with the grade rising by MXN1,055/mt while P&S 5ft was the most sought-after grade in Central Mexico, rising by MXN550/mt in that region.
  • The weekly Davis Index in Northern Mexico for #1HMS went up by MXN372/mt delivered Mexico consumer on Friday, P&S ft5 rose by MXN395/mt delivered and shredded climbed by MXN350/mt. Machine shop turnings went up by MXN155/mt delivered and #1 busheling prices were up by MXN133/mt delivered on Friday.
  • In Central Mexico, the weekly Davis Index for #1HMS climbed by MXN500/mt delivered Mexico consumer on Friday, while P&S 5ft rose by MXN550/mt delivered. Shredded increased by MXN530/mt delivered, machine shop turnings rose by MXN550/mt delivered, and #1 busheling went up MXN490/mt delivered today.
  • Bajio Mexico’s weekly index for #1HMS climbed by MXN536/mt to delivered Mexico consumer on Friday, while P&S 5ft rose by MXN450/mt delivered. Shredded increased by MXN1,055/mt to delivered, while machine shop turnings increased by MXN138/mt to delivered and #1 busheling rose MXN75/mt to delivered. ($1=MXN19.85)

 

 

Japan

 

  • Japan’s monthly Kanto Tetsugen scrap tender, Friday, concluded with average bids at JPY47,888/mt ($435/mt) fas Tokyo port, down JPY1,307/mt ($11.8) than last month’s average of JPY49,195/mt fas.
  • Tokyo steel has cut its ferrous scrap purchase prices by JPY500/mt ($4.5/mt) for deliveries to Tahara and Kyushu works, effective July 10.
  • Bids for #2 HMS at JPY51,000/mt ($463.26/mt) delivered Tahara and JPY49,000/mt ($445.09/mt) delivered Utsunomiya.
  • The Japanese domestic scrap market is witnessing a game of tug-of-war between heavy scrap and premium scrap. Mills are mostly buying HMS to keep costs low and maintain profit margins. The gap between the two is steadily increasing.
  • The weekly index for #2 HMS, Wednesday, fell by JPY1,000/mt ($9.03/mt) fob Japan and fas Japan.
  • Japanese P&S 5ft (small bulk) fell by $5/mt cfr China port. Chinese mills have slowed imports on high offers.
  • The weekly index for Japanese #1 busheling dropped by JPY1,000/mt ($9.03/mt) fob and fas Japan.
  • The weekly Davis Index for shredded and HS, Wednesday, fell by JPY1,000/mt fas Japan.
  • The index for Japanese HMS 1&2 (50:50) rose $5/mt cfr Haiphong and cfr Taiwan. ($1 = JPY109.98)

 

 

South Korea

 

Hyundai steel, Friday, raised bids for high-quality Japanese ferrous scrap following the Kanto tender. Bids for #1 busheling at JPY64,500/mt ($586.46/mt) fob Japan, up by JPY7,500/mt ($68.19/mt) from June 22, while bids for #2 HMS flat at JPY48,000/mt ($436.43/mt) fob Japan. 

  • Bids for shredded at JPY58,000/mt ($527.36/mt), P&S (HS) at JPY60,500 ($550.09/mt) and H1:H2 at JPY48,500/mt ($440.98/mt) fob Japan.
  • Hyundai purchased a 45,000mt deep-sea cargo of #1 HMS at $513/mt cfr South Korea. The company is also heard to have bought #1 busheling at JPY64,000/mt fob Japan. 
  • The weekly indexes for domestic Heavy A rose KRW5,000/mt ($4.41/mt) del Incheon and del Pohang.
  • The weekly Davis Index for domestic Light A was flat delivered Pohang. In the domestic market, scrap prices rose due to limited supply.
  • The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, rose $2/mt cfr South Korea on improved domestic demand.
  • The weekly indexes for P&S 5ft and shredded cfr South Korea, Wednesday, rose by $2/mt each.
  • The weekly Davis Index for HMS #1, Wednesday rose by $1/mt cfr South Korea. ($1 = KRW1,145.11)

 

Taiwan

 

  • The weekly indexes for domestic HMS 1&2 (80:20) rose by TWD300/mt ($10.73/mt) del Northern and Southern mill, respectively.
  • Feng Hsin Steel raised scrap purchase bids by TWD300/mt and rebar prices by TWD200/mt, while it kept its section steel prices flat at TWD27,000/mt ex-works.
  • The weekly Davis Index for containerized US-origin HMS 1&2 (80:20), Wednesday, rose $3/mt cfr Taiwan. The weekly index for HMS 1&2 (50:50) increased by $5/mt cfr Taiwan.
  • The weekly indexes for containerized #1 HMS and #1 busheling registered an uptick of $6/mt cfr Taiwan, each, while the indexes for shredded and P&S 5ft increased $7/mt cfr Taiwan, respectively, on Thursday.
  • The weekly index for HMS 1&2 (80:20) rose $5/mt cfr Taiwan amid slow demand. ($1 = TWD28)

 

China

 

  • The weekly Davis Index for HMS 1 & 2 (80:20) settled unchanged at CNY3,750/mt ($579.96/mt) del mill on Tuesday.
  • Domestic billet prices are at CNY5,020 ($774.79/mt) ex-Tangshan, including VAT, up by CNY90/mt from a week ago.
  • Iron ore prices with ferrous content of 62pc dropped from this week’s high by around $8/mt cfr North China on easing supply.
  • On Friday, Chinese steel futures for rebar and HRC maintained an uptrend, but iron ore declined due to easing supplies. Domestic billet prices were stable from a day ago ex-Tangshan inclusive of VAT, yet prices rose by CNY160/mt from last Friday as mills resumed operations after productions cuts ended.
  • China’s daily average crude steel output fell to 2.263mn mt in late June, down by 5.51 from the prior 10-day or mid-June on stricter production curbs ahead of the centennial year celebrations. But since July 2, the steelmakers in Tangshan resumed production through blast furnaces and are expected to revert production to prior levels.
  • Steel demand in China is expected to be muted in July due to rainy weather impacting the construction and real estate industry. Also, the auto industry is struggling with the shortage of semiconductors that has slowed production. ($1 = CNY6.48)

 

Vietnam

 

  • The weekly Davis Index for HMS 1&2 (80:20) in Vietnam rose VND125,000/mt ($5.43/mt) delivered Southern mill.
  • Construction steel prices in Vietnam dropped lower than VND17mn/mt.
  • The weekly Davis index for containerized #1 HMS, Thursday, increased by $8/mt cfr Vietnam. The weekly index for shredded rose by $8/mt cfr Vietnam, while the index for P&S 5ft increased by $6/mt cfr Vietnam, respectively. Vietnamese mills are expected to increase billet exports to China amid production curbs due to supply-side reforms in China.
  • The weekly index for #1 bushelling rose by $4/mt cfr Vietnam port.
  • The weekly Davis index of HMS 1&2 (80:20) went up by $6/mt cfr Vietnam. 

($1 = VND22,997.02)

 

Indonesia

 

  • The weekly Davis index for P&S 5ft fell $14/mt cfr Indonesia port.
  • The weekly Davis Index for shredded and #1 busheling dropped by $14/mt each cfr Indonesia port, respectively. Buyers reduced bids amid bearish market sentiment. Trading has halted due to the extension of lockdown until July 20. ($1 = IDR14492.90)

 

Thailand

 

  • The weekly Davis index for domestic HMS 1&2 (80:20) fell by THB200/mt ($6437/mt) del Rayong mill. Thai mills continued to stay silent amid COVID-19 restrictions. ($1 = THB32.55)

 

Malaysia

 

  • The weekly indexes for HMS 1&2 (80:20) fell by MYR20/mt del eastern mill and del western mill.
  • Malaysia continues to be under a strict lockdown. ($1 = MYR4.19)
  •  

India 

 

  • Indian importers were unwilling to book imported ferrous scrap amid weak domestic fundamentals. Mills faced margin squeeze as sales, in both domestic and export markets, fell far below expectations. A monsoon lull and fear of a third COVID-19 wave added to bearish sentiments.
  • The daily Davis Index for containerized shredded scrap on Friday rose by $1.25/mt cfr Nhava Sheva. Offers firm above $535-540/mt cfr Nhava Sheva following an uptick in trades from Pakistan. The index declined by $0.75/mt from last Friday on low bids.
  • The daily Davis Index for US-origin HMS 1&2 (80:20) remained unchanged cfr Nhava Sheva. Lower bids pulled the index down by $13.75/mt on Friday from a week prior.
  • The index for UAE-origin HMS 1&2 (80:20) cfr Nhava Sheva, dropped $18/mt from a week prior. Bids were below $435-440/mt cfr Nhava Sheva and resisted by suppliers in the UK, Australia, and Latin America.
  • The Davis indexes for P&S and #1 busheling fell $1/mt cfr Nhava Sheva from July 2. A tight supply for prime grades kept prices high.
  • In the Alang shipbreaking market, melting scrap prices on Friday were stable from Thursday, however, rose by Rs300/mt as compared to last Friday. In Mumbai, rebar prices rose by Rs300/mt on Friday from a day prior, rising Rs800/mt from last Friday on improved demand.
  • Indian billet exports offers were above $600-605/mt fob India. Participants expected a marginal correction in Japan and Southeast Asian prices but felt there would not be any major drop.
  • The international freight rates are largely flat but exhibited a slight increase this week amid the continued shortage of containers in the global market. ($1=Rs74.64)

 

India domestic

 

  • Ferrous scrap prices this week declined in Mumbai and settled unchanged in Mandi Gobindgarh. The index for HMS 1&2 (80:20) declined by Rs800/mt del Mumbai mills as finished steelmakers were holding huge stocks which made them buy raw material on a limited basis.
  • The index for HMS 1&2 (80:20) settled flat in Mandi Gobindgarh to Rs33,900/mt del mills on Friday as compared to the previous week.
  • JSW Steel’s flagship Vijayanagar works’ melt shop will undergo a 75-day maintenance shutdown beginning July 15.
  •  

Pakistan  

 

  • Large Pakistani mills booked containerized ferrous scrap placing the most attractive bids in the Indian subcontinent. While small-scale mills reluctantly showed a willingness to accept current offers, fearing further domestic supply crunch and fewer seaborne offers.
  • The Pakistani rupee continued to depreciate against the US dollar hitting PKR159.6 on Friday from PKR156.5 a week ago. The currency devaluation has pushed up imported scrap prices.
  • The daily Davis Index for containerized shredded, Friday, rose $4/mt cfr Port Qasim. Meanwhile, from last Friday, the index jumped up $5/mt, scaling a new high since 2009, according to sources.
  • Trading for UAE-origin material picked up this week amid a rapid rise in domestic steel prices. The daily Davis Index for UAE-origin HMS 1&2 (80:20), Friday, was up by $1/mt from a day ago and $9/mt from last Friday. 
  • Sellers diverted offers in the Pakistani market amid slow demand in India and Bangladesh. UAE-origin mixed #1 HMS and P&S sold at $505/mt cfr Port Qasim, with a few sellers even targeting $510/mt cfr Qasim. Pakistani mills paid at least $30/mt higher than the equivalent Indian prices amid a supply crunch in the domestic market.
  • The Davis index for US-origin HMS 1&2 (80:20), Friday, up by $1.75/mt from a day ago and $3/mt from the prior Friday. The Davis Indexes for P&S 5ft and #1 busheling settled on Friday, both up by $5/mt from the prior Friday.
  • All major rebar producers in Karachi and Punjab have hiked prices by PKR5,000-5,500/mt ($31-33/mt) effective July 7. Amid tight supply for ferrous scrap and the resulting rise in input costs, prices jumped despite slow sales. A wide gap between steel prices in the global and Pakistan’s domestic markets encouraged steelmakers to raise offers.
  • The weekly index for domestic Bala billet jumped up by PKR10,000/mt ($62.6/mt) ex-works. The weekly indexes for Art Q toke scrap (equivalent to a mix of HMS and P&S) and Pure Q toke scrap (equivalent to shredded), Friday, surged ex-yard Lahore, by PKR6,000/mt, amid slow demolition and ship-breaking activities. ($1=PKR159.6)
  •  

Bangladesh

 

  • Bangladeshi steel mills booked imported ferrous scrap this week to meet immediate melt requirements. Demand was slower amid heavy monsoon rainfall and the extension of lockdown restrictions until July 14. Shortage of domestic scrap due to a decline in demolition work could support imports in the coming days.
  • Steelmakers are eyeing price hikes for finished steel products after booking a lot of imported scrap volumes at higher prices. Medium and small-scale mills are facing working capital issues and have lowered utilization levels to match weak demand. The upcoming Eid holidays around July 21 could dampen trading.
  • The daily Davis Index for containerized shredded, Friday, rose $0.75/mt cfr Chattogram. Deals were scarce amid a wide disparity between offers and bids. But a recovery in the Pakistani market and elevated freight rates marginally lifted offers this week. 
  • The daily Davis Index for HMS 1&2 (80:20) from Latin America, Friday, rose $2/mt cfr Chattogram. Healthy trading for HMS 1&2 (80:20) lifted traders’ expectations $5/mt higher for the next week.
  • Domestic steel prices have remained unchanged for the last two weeks on slow trades. The weekly index for ship scrap equivalent to P&S also remained unchanged. For shipbreakers, offers for scrapped vessels were largely stable.
  • The weekly index for billet inched down BDT250/mt ex-works. On sluggish sales, the weekly index for rebar from large-scale mills settled ex-works, down BDT250/mt. ($1=BDT84.83)

 

Metallics

 

US/CIS

 

  • The weekly Davis Index for basic pig iron (BPI) ticked down by $2/mt cfr New Orleans port on Friday in a quiet import market as domestic trading takes precedence. The weekly Davis Index for CIS BPI was flat fob Black Sea on Friday.
  • A BPI shipment from Russia (Baltic Sea) to the US transacted at $625/mt cfr Nola, though market participants view this as a “distress shipment” made ahead of the new duties and don’t feel it reflects the current market. Offer levels remain between $645-655/mt cfr Nola.
  • The Davis Index for nodular pig iron (NPI) imports is flat at Nola. The material remains in limited supply with offers solely entailing future shipment. Offers heard recently for NPI firmly range between $750-780/mt cfr Nola with bids a touch below.
  • US hot briquetted iron (HBI) imports held firm cfr Nola as new offers and bids are lacking for the grade. The price level for the material is calculated to include the latest offers along with price comparisons with similar grades.
  • Trading was muted in the CIS Black Sea basin and as a result, the weekly Davis Index for CIS BPI in Italy was unchanged on Friday. In Turkey, a stockist was heard to have purchased some tonnages at around $650/mt cfr for distribution.  
  • Some transactions for CIS pig iron were fixed in Asia. Thus, an exporter from Far East Russia sold 15,000mt of the material to China at $610/mt cfr and 5,000mt to Japan at $640/mt cfr.

 

India

 

  • The index for sponge iron rose by Rs300/mt del Mumbai mills, this week; while the index for Mandi Gobindgarh declined by Rs400/mt del mills. 
  • In Bellary, pellet sponge iron prices rose by Rs300/mt on Friday evening, amid demand from mills in the nearby states. ($1=Rs74.5)

 

Semi-finished

 

  • The daily Davis Index for billet in Mumbai, Friday, rose Rs700/mt ($10/mt) ex-works from last week following a rise in rebar prices. The index for rebar was also up by Rs700/mt.
  • In Raipur, the daily index for billet remained flat ex-works from the previous Friday in line with limited demand from re-rolling mills.
  • In Mandi Gobindgarh, the daily index rose Rs500/mt ($6/mt) ex-works from the previous Friday with a similar increase in local scrap prices. 

 

Shipbreaking

 

  • Shipbreaking scrap prices remained up this week amid firm demand from rolling mills in Gujarat. The daily Davis Index for HMS attachments and Melting, Friday, rose by Rs300/mt ($4.02/mt) ex-Alang each, compared to the prior week.
  • The index for 14Ani settled flat, while the index for 10Ani rose by Rs200/mt ex-Alang.
  • Ship plate price remained firm as mills restocked raw material ahead of monsoon. The weekly index for 5kg plates rose Rs300/mt ex-Alang from the prior Friday.

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