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Ferrous Market Update: July 26-30

Ferrous Market Update 07/30/2021

 

Turkey

 

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) declined by $1.04/mt on Friday following fresh sales from the Baltic region and Europe.
  • An Iskenderun-based mill, which recently resumed crude steel production, booked its first deep sea cargo, including HMS 1&2 (80:20) at $469/mt cfr and bonus material at $484/mt cfr from the Baltic region (Klaipeda, Kaliningrad) on Jul 29.
  • A Marmara-based mill purchased 25,000mt of HMS 1&2 (80:20) at $465/mt cfr, 15,000mt of shredded scrap, and 5,000mt of HMS 1 and P&S 5ft at $485/mt cfr from a Belgian supplier for August shipment.
  • Buying activity improved in the Turkish scrap market, with scrap suppliers hoping that the market is close to the bottom. Some mills also began asking for September shipment cargoes.
  • Spot rebar prices in the Turkish domestic market decreased by TRY30-50/mt on Friday amid currency fluctuations. Icdas reduced its local rebar prices by TRY50/mt to TRY7,290/mt ex-works Biga and TRY7,370/mt ex-works Istanbul. ($1=TRY8.42)

 

Turkey domestic

 

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey was flat on Monday as the country returned from the Kurban Bayrami holidays.
  • Purchase prices for shipbreaking scrap in the Izmir region were also unchanged. ($1=TRY8.42)

 

CIS

 

  • The weekly Davis Indexes for HMS 1&2 (80:20) or A3 scrap in Russia’s Baltic Sea and Black Sea regions were flat on Monday due to muted trading.
  • Russia’s exported ferrous scrap market was quiet last week amid the Kurban Bayrami holidays in Turkey. Negotiations between Russian scrap sellers and Turkish buyers may accelerate during the week with some bookings for August shipment expected in the near term.
  • Russia’s collection prices remained at previous levels in a subdued export market. ($1=RUB74.59)

 

Europe

 

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region dropped by €6/mt on Tuesday in a bearish export market.
  • Ferrous scrap exporters from the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) continued to cut collection prices as Turkish importers targeted lower prices. Bids for European HMS 1&2 (75:25) dropped to $460-465/mt cfr Turkey after sales to Egypt were heard at similar levels around a week ago. (€1 = $1.18)

 

UK dockside

 

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices declined by £5-7/mt ($7-10/mt) delivered dockside on Tuesday.
  • Bulk processors have dropped dockside rates largely in response to stagnant export demand from major seaborne trade routes, particularly to Turkey and Egypt. 
  • Most UK bulk ferrous scrap exporters cut their dockside purchase prices this week by £2-9/mt, depending on grade and location. Transacted ranges have also widened over the past week with some processors trying to stem flows, while other more isolated operations benefit from captive supply.
  • Prices in northern England have remained relatively elevated compared with those in the south due to the entry of a new market participant in Teesside.
  • The weekly indices for north and south UK OA (Plate & Structural) also fell by £7-9/mt delivered dockside while north and south UK 5A/5C (frag feed) ferrous scrap indices edged £2/mt lower. (£1=$1.38)

 

Spain 

 

  • Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk weekly ferrous scrap indices dropped by €5/mt ($6/mt) cfr on Friday.
  • Spanish ferrous scrap buyers were heard to have slashed bids again this week amid a lack of activity on major deepsea trade routes.
  • Some small bulk exporters have been reluctant to accept markedly lower bids as they feel current prices do not fairly reflect the health of steel margins. That said, large supplier stockpiles, particularly in the UK and USA, have undermined recent negotiations.
  • Two recent deals to Turkey booked in the past 24 hours at relatively lower levels will likely remove support from shortsea prices in the next week.
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices dropped by €6/mt fob during the week. (€1=$1.19)

 

US dockside

 

  • US East Coast dock collection prices for ferrous scrap continued on a downward trajectory amid strong scrap flows and weak exports. Houston docks have been rangebound for the past month amid mill demand with limited scrap flows in the region.
  • The Davis Index for US HMS 1&2 (80:20) exports to Turkey dropped by around $5/mt to $479.38/mt cfr compared to $484.89/mt cfr on Jul 20. The grade has shown more downward movement in the past month and fell by $20.14/mt on Tuesday compared to $499.52/mt cfr for the export material on Jun 29. 
  • Activity at the docks has been waning for over a month and market participants believe this will continue throughout Q3. Dockside sales for #1 HMS on the East Coast decreased by another $5-10/gt to $360-380/gt per dock location and prior sales level.
  • In Boston, prices have fallen modestly over the past few weeks amid a lower starting point. The weekly Davis Indexes for export yard #1 HMS and P&S 5ft both fell by $5/gt delivered Boston dock, respectively. The shredder feed index dropped by $4/gt delivered Boston export yard. 
  • The weekly Davis Index for export yard buying prices in New York decreased by $8/gt for #1 HMS delivered, P&S 5ft fell by $9/gt and shredder feed moved down by $7/gt delivered New York dock. 
  • In Philadelphia, the Davis Index for export yard collection prices for #1 HMS moved down by $7/gt delivered and P&S 5 ft fell by $8/gt delivered Philadelphia dock. The index for shredder feed declined by $6/gt delivered. 
  • Houston’s weekly Davis Indexes were unchanged for #1 HMS and P&S 5ft delivered Houston dock while shredder feed dropped by $17/gt delivered Houston dock. Mills need scrap, holding prices steady however shredder feed, which is more abundantly supplied, moved down to match similar drops at other dock locations.
  • US West Coast dockside ferrous scrap prices were rangebound on Tuesday despite pressure from buyers to reduce prices. Still, several participants in the Los Angeles region speculated a price change by Aug 1.
  • The Davis Index for US-origin HMS 1&2 (80:20) fell by $5.50/mt to $479.38/mt cfr Turkey on Tuesday from $484.89/mt cfr on Jul 20.
  • Japanese ferrous scrap exporters are also receiving competitive bidding prices with a downward trend as Vietnamese, Korean, and Taiwanese buyers limit buys on market uncertainty and a preference for domestic ferrous scrap. The move toward deals over the course of the next few weeks could place downward pressure on export prices and, therefore, dock buying prices. However, Japanese domestic mills have retained ferrous scrap buys at unchanged levels from the prior week. 
  • Pakistani, Bangladeshi, and Indian mills are limiting their interest. Still, ferrous import scrap prices may gain support as Indian mills increase domestic steel activity. Pakistan and Bangladesh are also expected to return as market uncertainty clears up after lockdowns, domestic activity resumes, and the economic activity outlook is clearer pending Chinese duty tax changes if any. 
  • The US domestic scrap market is anticipated to have a soft to sideways trend in August that could see some grades losing $20-30/gt against July settled prices. However, some scrap yards continue reporting slow flows amid high demand and potential effects of logistics on mills that opt to cancel July ferrous buys in hopes of capturing lower prices in August. Among secondary grades, #1 HMS is likely to be most affected by lower price pressure due to sufficient inventories. 
  • The weekly Davis Indexes in Portland for export yard scrap were unchanged for #1 HMS, P&S 5ft and shredder feed delivered export yard.
  • The San Francisco weekly Davis Indexes trended flat this week though market participants note downward pressure from buying docks. Lower prices could be announced next week but on Tuesday, #1 HMS, P&S 5ft and shredder feed were unchanged. 
  • In Los Angeles, the Davis Index continued in range with a slight downtrend as #1 HMS was flat while P&S 5ft fell by $1/gt delivered, and shredder feed dropped by $2/gt delivered. Some market participants speculate a price cut on Friday or by Monday as August begins. 
  • Los Angeles container prices were reported at $400-420/mt fas last week but are trending down by $10-20/mt to $390-400/mt fas today. Freight charges are increasing on ocean rates along with buyer hesitation on COVID-19 domestic market economic concerns, thereby, placing pressure on ferrous container prices.

 

 

 

US domestic

 

  • Sentiment for US August ferrous scrap trading is mostly veering towards a likely price decay when transactions begin next week. This possibility was initially anticipated after ferrous trading in July settled on sufficient inventories per seasonality. However, a weakness in exports may ensure a downward trend.
  • Secondary grades such as P&S 5ft and #1 HMS along with shredded are projected to decline by $20-30/gt while prime grades that include #1 busheling, may remain unchanged or fall by $10/gt versus July settlements.
  • Scrap flows have been healthy and outpacing outbound scrap sales, which led many scrap dealers to lower scale prices by mid-month. The overhang in material emerged more noticeably during July trading although, not all sellers see this as an indication of falling prices when considering all factors. Heavy melt grades such as #1HMS are considered as receiving higher yard flows compared to P&S 5ft. 
  • Industry participants note that mill demand remains high while transportation issues continue to impede deliveries, which should uphold some price strength in scrap as prior orders remain unfulfilled entering August.
  • The usual propensity of mills to cancel orders at the end of the month is unlikely to occur in large volumes to minimize logistics disruptions. Additionally, it could cause yards to prioritize those mills that selected not to cancel orders. Some yard managers believe that negotiations depending on mill needs could limit the downtrend, especially, given the increasing finished steel prices. 
  • Steel prices have maintained their strength with mill capacity utilization levels gradually increasing to approach 85pc compared to 60.3pc a year ago. Mill order books are solid and lead times are still expanding, moving at eight weeks and up to 12 weeks.
  • Mills including Nucor, for example, continue announcing further steel price increases with hot-rolled coil (HRC) prices currently trading at $2,005-2,072/mt ($1,820-1,880/nt) fob US mill. This leaves a spread of about $1,400/gt between HRC and prime grade #1 busheling that changed hands at $620-670/gt in and around various Midwest markets last month.
  • At the beginning of July, HRC prices were reported at $1,873-1,940/mt ($1,720-1,760/nt) fob US mill reflecting a rise of up to $110/nt or $166/mt. Compared to an average price of $1,158/mt in early January, prices have increased an average of 75pc year-to-date. CRC prices continue trending about $220/mt higher than HRC. 
  • Market participants affected by East Coast activity such as the domestic Philadelphia market are expecting declines at the higher end of the range. Dockside prices on the East Coast have fallen over $20/gt for #1 HMS over the past month from $396/gt for #1 HMS on Jun 29 to $373/gt on Jul 27.
  • US exports have encountered a downward trajectory in Q3. The Davis Index for US HMS 1&2 (80:20) exports to Turkey is down $28.64/mt to $470.88/mt cfr on Thursday compared to $499.52/mt cfr on Jun 29.
  • On the West Coast, dealers are encountering lower container and bulk prices from Asian buyers as well. Additionally, some have been selling into the domestic markets in Texas and Central US. Exporters report continued opportunities in Mexico on higher container prices than to Asia but softness in prices from Texas and Southeast in the August trade could also see the import prices softening. 

 

 

US containers

 

  • US containerized ferrous scrap prices contracted on both coasts on Thursday.  
  • While buyers encountered more firm pricing the prior week, especially on the East Coast, buyers note that sellers were more willing to negotiate lower prices on the global downward trend faced by ferrous scrap prices and limited bid activity this week.  
  • Buyers note hesitation in buying at higher prices pending the COVID-19 uncertainty in their domestic markets and expected declines in the upcoming month.  
  • The latest US-origin import scrap deal pricing to Turkey moved the US-origin HMS 1&2 (80:20) down by $29.95/mt to $470.88/mt cfr on Thursday against $500.83/mt cfr on Jul 2. The lower deal prices to Turkey along with lower demand and bidding prices from Asia are also reinforcing the expected decline in the August US domestic scrap market trade that is expected to soften by $20-30/gt against July settlement. 
  • The New York weekly Davis Indexes declined across all grades this week as buyers’ demand weakened and active bids lowered. #1 busheling and HMS 1&2 (80:20) fell by $17/mt. P&S 5ft dropped by $19/mt as shredded trailed near with a decline of $18/mt. Machine turnings decreased the least across the grades with a decline of $14/gt. 
  • The weekly Davis Indexes in Los Angeles also fell again for a consecutive week. #1 busheling declined by $12/mt while HMS 1&2 (80:20) fell by $11/mt. P&S 5ft decreased by $8/mt alongside shredded which contracted by $9/mt.  
  • San Francisco’s indexes trended down with #1 busheling dropped by $9/mt, HMS 1&2 (80:20) fell by $13/mt, P&S 5ft declined by $5/mt, and shredded both declining by $6/mt. 
  • In Seattle, containerized ferrous prices dropped by $6-8/mt this week after having fallen $2-4/mt the prior week. The Davis Index for #1 busheling fell by $8/mt as HMS 1&2 (80:20) declined by $11/mt. Shredded and P&S 5ft grades both declined by $6/mt.  

 

 

Mexico

 

  • Scrap prices in Mexico increased by an average of MXN77/mt ($3.87/mt) this week amid increasing supply and softening demand.
  • Prices in Mexico have started following global cues and are decelerating, though the shortage of automotive scrap has kept # 1 busheling prices firm, especially in Bajío, where they increase by MXN316/mt delivered on Friday.
  • The weekly Davis Index in Northern Mexico for #1HMS increased by MXN28/mt delivered Mexico consumer on Friday, P&S 5ft rose by MXN61/mt delivered and shredded increased by MXN350/mt. Machine shop turnings declined by MXN100/mt delivered and #1 busheling prices rose by MXN45/mt delivered.
  • In Central Mexico, the weekly Davis Index for #1HMS, machine shop turnings, and #1 busheling remained unchanged this week while P&S 5ft rose by MXN50/mtdelivered, while shredded grew by MXN100/mt delivered.
  • Bajio Mexico’s weekly index for #1HMS climbed by MXN67/mt to delivered Mexico consumer on Friday, while P&S 5ft rose by MXN100/mt delivered. Shredded increased by MXN133/mt delivered, while machine shop turnings increased by MXN17/mt delivered and #1 busheling rose MXN316/mt delivered. ($1=MXN19.88)

 

 

Japan

 

  • Tokyo Steel kept its ferrous scrap purchase prices unchanged. 
  • The weekly Davis Index for #2 HMS, Wednesday, settled flat fob Japan and fas Japan. The grade was heard to be sold in South Korea fob Japan at prices down by JPY500/mt ($4.55/mt).
  • The weekly Davis Index for Japanese P&S 5ft (small bulk) on a cfr China port was up by $20/mt.  
  • The weekly index for the #1 busheling (Shindachi) rose by JPY250/mt ($2.27/mt) fob and fas Japan.  
  • The weekly Davis Index for shredded, settled flat on Wednesday and the index for HS was up by JPY750/mt ($6.82/mt) fas Japan.  
  • The index for Japanese HMS 1&2 (50:50), Wednesday, fell by $7/mt cfr Taiwan.
  • The Japanese market was quiet this with inquiries limited from South Korea. Scrap generation has taken a hit due to Obon holidays in the country starting from the second week of August. ($1 = JPY109.59)

 

 

South Korea

 

  • The weekly Davis Index for domestic Heavy A del Incheon rose by KRW7,500/mt ($6.50/mt) and del Pohang. 
  • The weekly Davis Index for domestic Light A settled flat del Pohang. 
  • The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, cfr South Korea, fell by $6/mt.
  • The weekly Davis Index for P&S 5ft, Wednesday, dropped by $4/mt cfr South Korea. The index for shredded cfr South Korea, was down by $3/mt. 
  • The weekly Davis Index for #1 HMS, Wednesday, dropped by $6/mt cfr South Korea. 
  • South Korea’s Hyundai Steel lowered bids for Japanese ferrous scrap by JPY500-1,000/mt ($4.55-9.11/mt) on July 29. The steelmaker lowered bids by JPY1,000/mt for HMS #2. While bids for premium grades P&S (HS) 5ft and #1 bushelling were down by JPY500/mt fob. ($1 = KRW1,149.79)

 

 

Taiwan

 

  • The weekly Davis indexes for domestic HMS 1&2 (80:20) fell by TWD300/mt del Northern mill and TWD400/mt del Southern mill.  
  • Feng Hsin Steel lowered its scrap purchase bids by TWD300/mt ($10.7/mt) and kept rebar prices flat.
  • Taiwanese scrap buyers have taken a backseat after buying actively in mid-July. 
  • The weekly Davis index for HMS 1&2 (50:50) went down by $7/mt. 
  • Taiwan’s imported ferrous scrap market continues to struggle with slow demand. The weekly Davis Index for containerized #1 HMS and shindachi busheling dropped by $8/mt cfr Taiwan. 
  • The index for shredded and P&S 5ft dropped by $8/mt cfr Taiwan. 
  • The weekly index for HMS 1&2 (80:20) went down by $4/mt cfr Taiwan port. ($1 = TWD27.94)

 

 

China

 

  • The weekly Davis Index for HMS 1&2 (80:20) dropped by CNY20 del mill on Tuesday.  
  • In the global market, ferrous scrap prices have remained largely stable. In the domestic market, Tangshan province continued to tighten production restrictions. 
  • The Chinese ministry of finance canceled temporary export tax rebates offered on about 23 steel products, effective Aug 1. The government also raised export taxes on pig iron and ferrochrome. 
  • Shagang Group announced production cuts and overseas sales to support the government’s efforts to cut emissions.
  • International iron ore Fe 62pc dipped to $182/mt cfr North China in the spot market on Friday, down around $18/mt in a week. While domestic billet prices rose CNY80/mt from last Friday to CNY5,280/mt ex-Tangshan inclusive of VAT. ($1 = CNY6.46)   

 

 

Vietnam

 

  • The weekly Davis Index for HMS 1&2 (80:20) in Vietnam fell VND100,000/mt ($4.35/mt) delivered Southern mill due to a rise in COVID-19 cases. 
  • The growing outbreak of COVID-19 led the Vietnamese government to impose a strict two-week lockdown in the country’s capital and commercial hub Ho Chi Minh City from July 18.  
  • The weekly Davis index for containerized #1 HMS, Thursday, dropped by $7/mt cfr Vietnam. The weekly index for shredded and P&S 5ft dropped by $7/mt each cfr Vietnam.
  • The weekly index for #1 bushelling dropped by $8/mt cfr Vietnam port. 
  • The weekly Davis index of HMS 1&2 (80:20) went down by $7/mt cfr Vietnam from the prior week. ($1 = VND22,955)

 

 

Indonesia

 

  • The weekly Davis index for P&S 5ft fell by $3/mt cfr Indonesia port. 
  • The weekly Davis Index for shredded dropped by $5/mt while the index dropped by $3/mt cfr Indonesia port for #1 busheling.  
  • The partial lockdown in Indonesia till July 25 was extended. Ferrous scrap imports have taken a backseat as domestic scrap prices are more competitive. ($1 = IDR14,459.70)

 

Thailand

 

  • The weekly Davis index for domestic HMS 1&2 (80:20) fell by TWD55/mt ($1.67/mt) del Rayong mill. Thai mills continued to stay silent amid COVID-19 restrictions. Buyers are largely silent. Construction activities in the country are stalled as the government sealed some construction camps on rising COVID-19 infections. ($1 = THB32.86)

 

 

Malaysia

 

  • The weekly Davis Index for HMS 1&2 (80:20) fell by MYR20/mt ($4.73/mt) del eastern and western mill. The COVID-19 situation in the country has deteriorated. The government has reiterated it will not extend the lockdown post-Aug 1. ($1 = MYR4.22)

 

India 

 

  • Ferrous scrap importers in India resumed inquiries. But buyers could wait for a $10-15/mt drop in the prices before booking material. 
  • The cancellation of rebates on 23 more steel product exports from China boosted sentiment, with primary steel producers eyeing a hike for August shipments. Mills could look at increasing their share in the export market as the domestic demand is still under pressure. 
  • Major suppliers like China and Russia have left a void in the export markets. 
  • The daily Davis Index for containerized shredded on Friday cfr Nhava Sheva, fell $3.75/mt. The disparity between offers and bids although has narrowed but remains over $10/mt. 
  • Following a $15/mt drop in Turkish bulk prices, market participants expect a bearish global scrap market. But the decline is yet to reflect in the Asian containers markets. 
  • The daily Davis Index for UAE-origin HMS 1&2 (80:20) declined by $4/mt to cfr Nhava Sheva. The weekly index for P&S fell by $8/mt cfr Nhava Sheva, while the index for #1 busheling was down by $3/mt from July 23, on slow inquiries for prime grades. 
  • In a silent market, the Davis Index for US-origin HMS 1&2 (80:20) dropped by $3.75/mt on Friday cfr Nhava Sheva from a day ago. Export offers dropped following softening outlook for the August domestic monthly settlements in the US. ($1=Rs74.42)

 

 

India domestic

 

  • Domestic ferrous scrap prices remained firm this week as the supply was low due to the ongoing monsoons. The Davis Index for HMS 1&2 (80:20) rose by Rs1,500/mt ($20.15/mt) del Mumbai mills on Friday as compared to the previous Friday. The index for HMS 1&2 (80:20) rose by Rs300/mt del Mandi Gobindgarh.
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Pakistan 

 

  • On Friday, a few negotiations for imported ferrous scrap were reported at lower prices with most buyers turned cautious to gain clarity on global cues. 
  • On the other hand, domestic steel prices maintained an uptrend driven by high input costs and a depreciating currency. 
  • Pakistani rupee continued to depreciate against $1 to reach PKR162.59 on July 30, from PKR160.0 on July 26. The currency has depreciated by 6.5pc from 152.3 on May 15.
  • The daily Davis Index for containerized shredded, Friday, dropped by $3/mt on low bids. The index dropped by $2.25/mt from last Friday. 
  • Turkish mills believe scrap supplies have eased. Yet yards are citing a possibility of freight hikes in early August for Asian buyers.
  • Sellers in the UAE resumed trades post-Eid at largely flat prices. The Davis Index for UAE-origin HMS 1&2 (80:20) remained unchanged from the prior Friday.
  • The index for US-origin HMS 1&2 (80:20), Friday, fell $5.5/mt cfr Port Qasim from Thursday and $5/mt from the prior Friday. Containerized export offers dropped for a second successive week from US East Coast sellers. 
  • The supply of high-grade scrap continues to remain tight. 
  • A price hike for rebar on Thursday after the Eid holidays pushed the weekly Davis Indexes for rebar up by PKR4,000/mt ex-works Karachi and Punjab from July 23. 
  • On Friday, major HRC producers including ISL and Aisha Steel hiked CRC and HDG prices by PKR5,850/mt ($36/mt). 
  • The weekly index for domestic Bala billet rose PKR7,500/mt ($46/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) rose by PKR1000/mt ex-yard Lahore. For Gadani shipbreakers, offers of scrapped vessels were up by $10/mt from the prior week. ($1=PKR162.59)

 

Bangladesh

 

  • In Bangladesh, trades for finished steel and domestic ferrous scrap have taken a hit amid the COVID-19-related lockdown until Aug 5. Most offices, industries, and factories are either closed or operating with a limited workforce.
  • Laborers are yet to return from the Eid holidays and steel production is expected to take a longer time for recovery. 
  • Only some large-scale mills like AKS and GPH are operating and continue to inquire for imported scrap. While scrap inventories are high at most mills, including BSRM, resulting in low to no buying interest.
  • The weekly index for ship scrap equivalent to P&S ex-yards was up BDT250/mt. A sharp rise in ship vessels prices, which hit $600/ldt forced recyclers to offer domestic rolling and melting scrap at higher prices. The weekly index for domestic HMS 1&2 (80:20) ex-yards Chattogram, was unchanged on Friday.
  • The daily Davis Index for containerized shredded, Friday, dropped $2.5/mt. Except for some deals, most mills stayed away from purchases amid a lack of liquidity, piled up inventories, and halted finished steel sales during the lockdown.
  • The index for US-origin containerized HMS 1&2 (80:20) cfr Chattogram dropped $3.75/mt from prior Friday. The indexes for UK-origin and Australia-origin HMS 1&2 (80:20) dropped $2/mt and $3/mt, respectively.
  • The Davis Index for HMS 1&2 (80:20) from Latin America, Friday dropped by $5/mt from prior Friday. Except for a few government-funded construction projects, steel-consuming activities remain stalled. ($1=BDT84.79)

 

Metallics

 

CIS

 

  • The weekly Davis Index for basic pig iron (BPI) fell by $18/mt cfr New Orleans port on Friday in a quiet market ahead of August domestic scrap trading next week. The weekly Davis Index for CIS BPI decreased by $14/mt fob Black Sea on Friday on sluggish demand.
  • The latest BPI deals were heard at $638-640/mt cfr Nola. This week, some CIS suppliers would agree to sell at $625-630/mt cfr Nola, but firm bids are missing and buyers target below $600/mt cfr Nola.
  • The Davis Index for nodular pig iron (NPI) imports fell by $25/mt cfr Nola. The grade is in tight supply with offers for future shipment only. Offers for NPI are now under $750/mt cfr Nola with bids $20/mt below offer levels.
  • US hot briquetted iron (HBI) imports decreased by $3/mt cfr Nola. Offers and bids have not been heard for the grade. The material’s price level is in line with the latest offers together with a price estimation based on comparable grades.
  • Trading was muted in the Black Sea basin as well because of which, the weekly Davis Index for CIS BPI in Italy dropped by $12/mt cfr on Friday. Around 1,500mt of the material was booked from Ukraine at $652-653/mt cfr late last week. Italian importers expect lower prices amid higher availability of pig iron from the CIS, India, and Brazil. Indian exporters were also offering to Turkey at $620/mt cfr this week.
  • A Russian supplier sold small tonnages of BPI to Eastern Europe at €630/mt dap Belarus and small tonnages of semi-nodular pig iron at €645/mt dap Belarus.
  • A new transaction was fixed in Asia, where an exporter from Far East Russia was heard to have sold 5,000-10,000mt of pig iron to China at around $590/mt cfr.

 

 

India

 

  • In a week, the index for sponge iron declined by Rs500/mt del Mumbai mills, and the index rose by Rs400/mt Mandi Gobindgarh as steelmakers opted for sponge over scrap. 

 

India finished and semi-finished steel

 

  • The Davis Index for billet in Mumbai rose by Rs1,000/mt ($13/mt) ex-works from Friday with a rise in input costs and rebar prices. 
  • In Raipur, the index for billet rose by Rs700/mt ($9/mt) ex-works from the previous Friday on an increase in sponge iron prices and healthy demand from outstation markets.
  • In Mandi Gobindgarh, the index was up by Rs700/mt ex-works from the previous Friday. 
  • In Jalna, the bi-weekly index for billet rose by Rs1,000/mt ex-works on Thursday from the previous week following a rise in rebar prices. Steel mills reported healthy rebar bookings which have led to a decline in stocks. 

 

 

Shipbreaking

 

  • Markets in Alang were shut due to the transporters’ strike. Alang Sosiya Truck Transport Association has requested rolling mills to increase the transportation cost as fuel prices have increased. The indexes for shipbreaking scrap remained unchanged this week.

 

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