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Ferrous market update July 6-10

Turkey

  • The daily Davis Index for US-origin HMS 1&2 (80:20) slipped by $3/mt to settle at $252.94/mt cfr Turkey on Friday, on a sale from the US.
  • An effort to contain domestic price decreases in the US-led one exporter to book a sale into Turkey at an HMS 1&2 (80:20) level of $253/mt. The cargo will comprise mostly shredded scrap and P&S 5ft for a total of 30,000mt. The price caught some market participants by surprise since offers had risen as high as $260/mt cfr.
  • The weekly Davis Indexes for DKP scrap and extra grade scrap in Turkey both decreased by TRY12/mt ($2/mt) to TRY1,856/mt delivered and TRY1,756/mt delivered, respectively, on Monday.
  • Some Turkish mills decreased their purchase prices for local ferrous scrap amid lower demand between late June and early July, but others decided to keep them unchanged.

Europe

 

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region increased by €4/mt ($4.50/mt) to €191/mt delivered dockside on Tuesday as expectations over better sales prices rose.
  • Some suppliers in the Netherlands and Belgium raised collection prices early in July in anticipation of higher prices after Turkish importers became active in the market, though other sellers were more cautious and preferred to keep collection prices unchanged.
  • A Belgian supplier closed a deal at an average price of $252/mt cfr for 20,000mt of HMS 1&2 (75:25), 2,500mt of shredded scrap and 12,500mt of P&S 5ft and HMS 1 to an Iskenderun-based mill. An exporter from the Netherlands was heard to have reached an agreement to sell HMS 1&2 (80:20) at $251.50/mt cfr to an Izmir-based mill in another transaction.
  • The Davis Index for HMS 1 in the ARAG region rose by €4/mt ($4.50/mt) to €201/mt delivered dockside on Tuesday, while the index for bonus scrap increased by €3/mt ($3/mt) to €206/mt delivered dockside. (€1 = $ 1.13)

 

CIS

  • The weekly Davis Index for HMS 1&2 (80:20) in Russia’s Baltic Sea region climbed by $2/mt to $240/mt fob on Monday and inched up by $3/mt to $235/mt fob in the Black Sea region amid muted business activity.
  • The Russian export ferrous scrap market has been subdued since the second half of June as demand for Russian material from Turkish mills remained weak. Last week, bids were heard at around $250/mt cfr for HMS 1&2 (80:20) from St Petersburg, while some mills accepted $255-256/mt cfr for HMS 1&2 (80:20) from the USA and the Baltic region.
  • Collection prices trended sideways in Russia with the weekly Davis Index for HMS 1&2 (80:20) sliding by RUB50/mt ($1/mt) in St Petersburg dock to RUB15,200/mt delivered on Monday.
  • The weekly index was flat at RUB13,650/mt delivered in Rostov-on-Don dock after some suppliers in the region decided to suspend collection for export in favor of sales to the domestic market. ($1 = RUB71.80)

 

UK

  • The weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices declined by £9/mt ($11/mt) to £141/mt delivered dockside and £139/mt delivered, respectively, on Tuesday.
  • Most British bulk ferrous scrap processors followed the trend set by one large operator early last week to protect narrowing margins and dropped dockside purchase prices by £5-9/mt.
  • A south UK-based trader paying a maximum of £135/mt for HMS 1&2 (80:20) noted that the flow of material across the weighbridge had slowed down significantly at those levels.
  • Merchant scrap yards’ attentions were largely turned towards monthly mill-yard negotiations with local smelters this week rather than dealing with the export markets.
  • Another Midlands-based merchant noted that a large UK domestic ferrous scrap buyer had opened discussions with bids of £10-15/mt lower on last month’s levels. (£1 = $1.25)

 

Spain

  • The weekly northern Spain HMS 1&2 (80:20) and shredded ferrous scrap small bulk Davis Indexes rebounded by €3/mt ($3/mt) to €208/mt cfr on Friday, bucking recent declines.
  • Some Belgian and Dutch ferrous scrap suppliers raised dockside purchase prices earlier this week to secure more volumes to fill new orders from Turkish mills. It would appear most of these adjustments have also been passed on to Spanish mills.
  • Spanish steel mills purchased seaborne HMS 1&2 (80:20) ferrous scrap cargoes from a recent low of €205/mt up to €210/mt this week, though hikes were capped as mills were able to secure sufficient material from local suppliers at cheaper prices too. (€1 = $ 1.13)

 

US domestic

  • US domestic ferrous scrap trading concluded on Friday with price drops of $20-40/gt on prime grades and $0-20/gt on shredded and cut grades from a month earlier.
  • Markets varied, but the Midwest recorded declines of $10-20/gt on cuts and shredded and a decline of $40/gt on primes. The South had stronger fundamentals, with cuts and shredded trending sideways and prime declining about $20-30/gt. In the Southeast, markets decreased by $10/gt on cuts and shredded grades, with prime grades trending down by $40/gt on prime.
  • Market sentiment has been bearish for the past month as scrap volumes outpaced mill demand. Material for July was offered early, and TBDs were lined up quickly so that excess tons might be placed because consumer needs have been limited. Prime grades, such as #1 busheling, were slated for steeper declines than cut grades because of higher industrial production from the automotive sector, but limited demand shrunk the spread between primes and shredded scrap.
  • Mills are operating at lowered utilization rates—around 55pc capacity—and some reported having the ability to use internally generated scrap or dip into their abundant inventories.
  • In Philadelphia, the Davis Indexes for #1busheling declined by $41/gt to $239/gt delivered. P&S 5ft fell by $20/gt to $210/gt delivered. In Chicago, the monthly indexes for #1 busheling declined by $42/gt to $275/gt delivered and shredded dropped by $20/gt to $229/gt delivered.
  • In Birmingham, the Davis Indexes for #1busheling declined by $36/gt to $279/gt delivered, while HMS 1&2 (80:20) decreased by $7/gt to $233/gt. The index for P&S 5ft declined by $12/gt to $246/gt delivered.
  • In Dallas, the Davis Indexes did not decrease as much as some other regions. #1busheling declined by $25/gt to $287/gt delivered, while HMS 1&2 (80:20) only decreased by $4/gt to $234/gt delivered. Some sellers did not place material until Friday because trading was slow and limited.
  • The early outlook for August suggests prices will remain unchanged following precipitous declines, but there is some upward potential as activity in the industry gradually grows.

 

US dockside

  • US East Coast dock collection prices for ferrous scrap declined by $2-9/gt across all grades and most dock locations and Houston dock collection prices were flat amid persistently weak export demand.
  • The weekly Davis Index for export yard buying prices in New York for HMS 1&2 (80:20) decreased by $5/gt to $194/gt delivered on Tuesday and fell by $5/gt to $206/gt delivered for P&S 5ft. The index for shredder feed declined by $6/gt to $152/gt delivered.
  • In Boston, the index for HMS 1&2 (80:20) decreased by $3/gt to $199/gt delivered dock and P&S 5ft dropped by $3/gt to $210/gt delivered Boston dock. The index for shredder feed decreased by $2/gt to $150/gt delivered.
  • The export yard buying weekly index for HMS 1&2 (80:20) in Philadelphia decreased by $9/gt to $194/gt delivered. The Davis Index for P&S 5ft dropped by $7/gt from $211/gt to $204/gt delivered Philadelphia dock and dropped by $5/gt to $153/gt delivered for shredder feed.
  • The weekly Davis Indexes in Houston remained unchanged for HMS 1&2 (80:20) at $218/gt delivered amid activity focused on domestic trading. P&S 5ft was flat at $228/gt delivered, and the index for shredder feed remained at $163/gt delivered Houston docks.
  • US West Coast ferrous scrap dock prices were flat on Tuesday after decreasing in the prior week amid a decline in export prices and slower inquiries from Asian buyers.
  • The weekly Davis Indexes in Portland declined for HMS 1&2 (80:20) by $2/gt to $176/gt delivered dockside and decreased for P&S 5ft by $1/gt to $186/gt delivered.
  • Dock prices are expected to remain unchanged in the short-term as mill scrap prices are still substantially more attractive than dock prices.
  • In Los Angeles, the weekly Davis Indexes remained unchanged across most grades after a downward price adjustment two weeks ago. HMS 1&2 (80:20) increased by $1/gt to $137/gt delivered dockside, while the index for P&S 5ft was flat at $156/gt delivered and shredder feed increased by $1/gt to $97/gt delivered.
  • The weekly indices in San Francisco remained unchanged across all grades with HMS 1&2 (80:20) at $179/gt delivered dockside, P&S 5ft at $190/gt delivered, and shredder feed at $131/gt delivered.
  • Market participants believe that global scrap prices may have bottomed out thereby making further dock price decreases unnecessary. Some sellers expect negotiations for late August and September bulk shipments into Asian markets to achieve strong prices, especially, if Turkish import prices trend flat with the possibility of increases.
  • Several sellers on the West Coast—which is heavily influenced by competing Japanese scrap export offer prices—noted the short-term price pressure on US-sourced scrap as Japanese domestic prices and offers declined. Sellers noted that lower bids for Japanese scrap are not being accepted by Japanese traders which is directing inquiries for US scrap.

 

US containers

  • US containerized ferrous scrap indexes moved in opposite directions, with West Coast export markets softening and the East Coast markets rising, especially in New York.
  • Last week, shredded scrap was quoted as low as $225/mt fas on the East Coast, as some sellers heavily discounted material while others stood firm at $240-245/mt fas. That caused a net decline in the region’s index prices, which rebounded this week on higher prices.
  • The New York shredded index was positively influenced by higher demand and import prices from Pakistan after duties on the material were repealed. Resultantly, Pakistan focused its purchases on shredded scrap.
  • The weekly Davis Index in New York for #1 busheling increased by $8/mt to $256/mt fas and rose for HMS 1&2 (80:20) by $15/mt to $235/mt fas. The index for P&S 5ft increased by $11/mt to $249/mt fas, while the index for shredded increased by $8/mt to $243/mt fas.
  • By late Friday, USEC offers for shred had already increased to $250/mt fas.
  • The index for machine shop turnings jumped by $28/mt to $211/mt fas. Turnings prices, at times, had wide parameters, depending on how strong demand was. Buyers in Pakistan, India, and Bangladesh were notably active purchasing turnings during the last week.
  • In Los Angeles, the weekly Davis Indexes for #1 busheling was flat at $227/mt fas. The remaining indexes declined, with HMS 1&2 (80:20) decreasing by $3/mt to $206/mt fas, P&S 5ft dropping by $1/mt to $221/mt fas and shredded falling by $1/mt to $221/mt fas.
  • The Davis Indexes in San Francisco decreased by $5/mt to $225/mt fas for #1 busheling and slid by $8/mt to $205/mt fas for HMS 1&2 (80:20). The index for P&S 5ft decreased by $3/mt to $220/mt fas, and fell for shredded by $3/mt to $220/mt fas.
  • The weekly Davis Indexes for #1 busheling declined in Seattle by $5/mt to $223/mt fas, and HMS 1&2 (80:20) fell by $7/mt to $208/mt. The index for shredded fell by $3/mt to $220/mt fas but, the index for P&S 5ft increased by $1/mt to $220/mt fas.

 

Mexico

  • Scrap prices in North Mexico have been flat but are expected to fall over the next few weeks as mills and recyclers compete over getting material that is in short supply. Some scrap dealers from the Bajío and Central regions expect #1busheling prices to fall in July as production has exceeded demand.
  • In Northern Mexico, the weekly Davis Index for HMS 1&2 (80:20) remained unchanged at MXN5,300/mt ($235,7/mt) delivered Mexico consumer on Friday. The index for #1 busheling increased by MXN200/mt to MXN5,950/mt delivered and fell for P&S 5ft by MXN50/mt to MXN5,500/mt delivered.
  • The weekly Davis Index in Bajío increased by MXN25/mt to MXN5,350/mt delivered Mexico consumer for HMS 1&2 (80:20). The index for #1 busheling and shredded fell by MXN375 and MXN100/mt to MXN 5,150/mt delivered and MXN5,400/mt delivered, respectively, but rose by MXN150/mt to MXN5,450/mt delivered for P&S 5ft.
  • In Central Mexico, the Davis Index for HMS 1&2 (80:20) fell by MXN250/mt to MXN4,650/mt delivered. The index for #1 busheling in the region increased by MXN50/mt to MXN5,575/mt delivered and decreased for P&S 5ft by MXN300/mt to MXN5,000/mt delivered. ($1= MXN22.49)

 

Japan  

  • Japan’s monthly scrap export tender ‘Kanto Tetsugen’ concluded on July 9 with average winning bids at JPY23,574/mt ($220/mt) fas Tokyo bay for total 22,000mt of ferrous scrap. The average of bids dropped by JPY2,786/mt ($26/mt) from the prior month to JPY24,500/mt fob Japan, around JPY1,500-2,000/mt higher than the current market levels.
  • The Davis Index for #2 HMS settled at JPY22,000/mt ($205/mt) fob Japan on Wednesday, down by JPY500/mt from the prior week. A few trades for #2 HMS concluded at JPY22,000-22,500/mt fob Japan with Taiwanese and Vietnamese mills this week.
  • In small bulk cargoes, #2 HMS traded at $240-245/mt cfr Vietnam, down by $10/mt from the prior week.
  • Tokyo steel announced a third purchase price cut in July lowering bids by JPY500/mt, effective July 8 at three of its works- Okayama, Kyusyu, and Takamatsu works. Prices at Tahara and Utsunomiya were unchanged for all grades. Scrap grade #2 HMS bids were at JPY21,500/mt ($200/mt) delivered Utsunomiya plant in the Kanto region, JPY23,500/mt delivered Kyushu and JPY23,000/mt delivered Okayama plant. ($1=JPY107.58)

 

South Korea  

  • The weekly Davis Index for containerized HMS 1&2 (80:20) settled at $231/mt cfr South Korea, down by $7/mt. Bids for shredded were at $240/mt cfr South Korea with no trades heard.
  • In the bulk market, South Korean mills lowered their bids for Japanese #2 HMS to JPY22,000/mt fob Japan. Dongkuk steel booked 15,000mt of #2 HMS at the index price.
  • Domestic steel players lowered domestic scrap purchase prices by KRW10,000-15,000/mt del plant for a third successive week. Prices continued to fall amid low to no trades and enough inventories in hand.
  • The Davis Index for domestic Heavy A settled at KRW300,000/mt ($250.86/mt) del Incheon, down by KRW7,500/mt, from the prior Tuesday. Hyundai steel booked domestic Light A scrap at KRW255,000/mt delivered Pohang plant, down by KRW10,000/mt.

 

Taiwan  

  • Imported ferrous scrap prices in Taiwan rose on Friday amid anticipation of Japanese prices going up due to higher average bids for the Kanto Tender than the current market.
  • The Davis Index for containerised US-origin HMS 1&2 (80:20) settled at $230/mt cfr Taiwan, up by $3/mt from the day prior but down by $2/mt from previous Friday. Few deals were heard at $225-230/mt cfr for US-origin HMS 1&2 (80:20) and $235/mt cfr Taiwan for #1 HMS this week.
  • In small bulk markets, the weekly index for Japanese HMS 1&2 (50:50) settled at $240/mt cfr Taiwan.
  • Domestic ferrous scrap fell by NTD200-300/mt amid prolonged weakness in finished steel demand on seasonal concerns.
  • The weekly Davis Index for domestic HMS 1&2 (80:20) in South Taiwan Tuesday settled at TWD6,650/mt ($226/mt) del plant from the prior week. The index for HMS 1&2 (80:20) in North Taiwan settled at TWD6,900/mt del plant, down TWD250/mt.
  • Feng Hsin Steel’s prices for rebar and billet dropped to TWD13,800-14,000/mt and TWD12,300-12,500/mt ex-plant, respectively. A few mills offered discounts on listed prices to boost trades. ($1=NTD29.49)

 

China

  • On Tuesday, Shagang Steel announced bids for domestic #2 HMS (6-10mm thickness) at CNY2,630/mt, up by CNY30/mt del Jiangsu plant inclusive of the 13pc VAT. The weekly Davis Index for domestic HMS 1&2 (80:20) settled at CNY2,650/mt ($377.3/mt) inclusive of 13pc vat delivered to mill in eastern China, up by CNY50/mt.
  • The government has announced an economic stimulus package to drive steel demand amid heavy rains and resulting floods in the northern region. In the domestic market, prices for billet rose by CNY30-50/mt from Friday last week to CNY3,330-3,350/mt ex-Tangshan mill on Tuesday. ($1=CNY7.00)

 

Vietnam 

  • In small bulk markets, Japanese-origin HMS 1&2(50:50) traded at $240-250/mt cfr Vietnam earlier this week but after the Kanto tender results, traders are likely to raise offers next week. Demand from mills was limited this week. US west coast suppliers offered bulk HMS 1&2 (80:20) at $260-265/mt cfr Vietnam with no buyer keen at those levels.
  • In containers market, a few bookings for HMS 1&2 (80:20) were heard at $225/mt cfr Haiphong and the weekly index fell by $10/mt to $225/mt cfr Vietnam.
  • The Davis Index for HMS 1&2 (80:20) settled at VND5,850,000/mt ($252/mt) delivered South Vietnam inclusive of taxes, down by VND50,000/mt from the prior week. ($1=VND23,169)

 

Indonesia

  • Deals for #1 busheling in FEU’s were heard at $280-285/mt cfr with the weekly Davis Index settling at $282/mt cfr Jakarta, up by $7/mt. Mills turned towards imported ferrous scrap trades due to a shortage of high-quality ferrous scrap in the domestic market.
  • The weekly index for US-origin HMS 1&2 (80:20) and #1 HMS scrap both declined by $6/mt to $236/mt and $245/mt cfr Jakarta, respectively. Deals for #1 HMS were at $245/mt cfr Jakarta. ($1=IDR14,480)

 

Thailand

  • The weekly Davis Index for domestic HMS 1&2 (80:20) settled at THB7,750/mt ($248/mt) delivered Rayong inclusive of taxes. Southeast Asian billet prices increased to around $405-410/mt cfr Southeast Asia amid limited availability of ferrous scrap in the domestic market. ($1=THB31.32)

 

Malaysia 

  • The weekly Davis Indexes for domestic HMS 1&2 (80:20) settled at MYR930/mt ($221/mt) delivered western mills, down by MYR15/mt and at MYR960/mt delivered eastern mills, down by MYR15/mt inclusive of taxes.
  • Imported HMS 1&2 (80:20) traded at $220-230/mt cfr Malaysia from South and Central America depending on the quality of the material. ($1=MYR4.27)

  

India

  • Inquiries spurred prices in the second half of the week, but most importers skipped new bookings amid the availability of low-priced domestic scrap and sponge iron.
  • The Davis Index for containerised shredded settled at $279.45/mt cfr India subcontinent on Friday, up by $1.55/mt from $277.9/mt on Thursday.
  • A few deals for UK-origin containerised shredded closed at $280/mt cfr Nhava Sheva against offers of $270-275/mt cfr last week. Most offers from the US remained at $275-280/mt cfr Nhava Sheva with bids at $265-270/mt cfr Nhava Sheva.
  • A handful of offers were available amid an ongoing ban on scrap exports from South Africa and UAE. South African two months scrap export ban is less likely to impact the Indian market as steelmakers have ample domestic alternatives.
  • Trades for the UK and Europe-origin HMS 1&2 (80:20) in containers concluded at $250-255/mt cfr Chennai. Australia-origin HMS 1&2 (80:20) traded at $250-255/mt cfr Nhava Sheva and Mundra, flat from the prior week.
  • In Goa and Chennai, West African HMS 1&2 (80:20) traded flat at $245-250/mt cfr. A few bids dropped to $235-240/mt cfr levels due to a fall in domestic semi-finished steel and scrap prices. ($1=Rs75.22)
  • Barring the uptick of Rs100/mt ($1.33/mt) in HMS 1&2 (80:20) on Thursday, prices for the scrap grade have been largely unchanged in Mumbai. On Friday, the daily Davis Index for HMS 1&2 (80:20) remained flat at Rs20,200/mt ($268.49/mt) del Mumbai mill.
  • In Mandi, the daily index for HMS settled at Rs19,900/mt del mill. Heavy rains in the North have hampered logistics in many regions, in addition to subdued demand. But prices have flattened this week rather than fallen as scrap is still available in limited quantities.
  • The bi-weekly Davis Index for HMS 1&2 in Indore slid by Rs650/mt ($8.66/mt) to 21,250/mt ($283.28/mt) del mill from Tuesday.
  • A shortage of scrap also persists in Ludhiana, North India. The bi-weekly index for HMS 1&2 (80:20) still settled unchanged from Tuesday at Rs21,500/mt del Ludhiana mill. The bi-weekly index for end cuttings, however, rose by Rs350/mt to Rs24,800/mt del mill. Steelmakers expect demand to recover gradually in the area. Steel production levels are rising slowly but a lack of labor is delaying the ramp-up process.
  • In South India, Chennai-based buyers were active this week. The bi-weekly index for HMS 1&2 (80:20) rose by Rs800/mt from Tuesday to Rs22,000/mt del mill. Though the Tamil Nadu state government’s lockdown is set to continue till July 31, a few relaxations in restrictions jump-started some activities this week, which also includes the Chennai market reopening.

Pakistan  

  • Importers of ferrous scrap in Pakistan remained most active in the Indian subcontinent. Steelmakers actively booked imported shredded amid lowering ferrous scrap inventories while prices were supported by a rise in finished steel demand in the domestic market.
  • The Davis Index for US-origin containerized shredded settled at $284/mt cfr Qasim on Friday, up by $1/mt from Thursday and by $3/mt from the prior Friday. Trades for shredded were reported at $280-283/mt cfr Qasim form the US and at $285-287/mt cfr Qasim for UK and Europe.
  • US yards held their offers at $260-265/mt cfr Qasim for HMS 1&2 (80:20). The weekly Davis Index for the UK and European-origin HMS 1&2 (80:20) on Friday settled at $255/mt cfr Qasim, up by $2/mt.
  • South African government has announced a ban on the exports for two months period at the minimum as the government investigates the impact of exports on the domestic market. Approval of export permits remains halted and thus there were no fresh offers.
  • The weekly Davis Index for commercial Bala billet settled at PKR93,250/mt ($555/mt) ex-yards Punjab on Friday, inclusive of local taxes, down by PKR750/mt from the prior week. Prices fell due to the oversupply of material.
  • The Davis Index for G-60 rebar settled at PKR113,500/mt ($675.86/mt) ex-plant Karachi, unchanged from a week ago. Rebar trades concluded at PKR113,000-114,000/mt ex-plant Karachi over the week.
  • Trades for domestic scrap were PKR71,000-71,500/mt delivered Lahore mill, unchanged from last week. ($1=PKR167.93)

Bangladesh

  • Small bulk cargo from Japan comprising of 10,000mt busheling traded at $287/mt cfr Chattogram. Offers from the US West Coast yards for HMS 1&2 (80:20) were in the range $270-275/mt cfr Chattogram.
  • The Davis Index for containerised shredded, Friday, settled at $292/mt cfr Chattogram, up by $7/mt from Thursday and by $9/mt from the prior week. On Friday, offers for containerised shredded were at $290-295/mt cfr Chattogram from US and Australia suppliers. A few trades for Brazil and New Zealand-origin shredded scrap were at $277-282/mt cfr Chattogram.
  • Truck movement between India and Bangladesh resumed this week after the sealed border reopened. Indian suppliers sold 5,000mt sponge iron to Bangladeshi steelmakers at $255/mt cfr Chattogram this week.
  • Offers for #1 HMS from Brazil and Chile were at $270-275/mt cfr Chattogram with buyers’ expectations at $265/mt cfr Chattogram.
  • P&S from South America and Australia was offered at $290-298/mt cfr Chattogram with the weekly index settling at $293/mt cfr, up by $5/mt. Scrap grade #1 HMS from Australia and Singapore traded at $275-277/mt cfr Chattogram.
  • The weekly index for domestic billet settled at BDT39,750/mt ($467/mt) ex-works Chattogram, down by BDT750/mt. Prices dropped amid slow demand due to the ongoing monsoons. Many suppliers offered discounts to liquidate inventories.
  • Dhaka-based small-scale producers offered rebar at BDT50,000-51,000/mt ex-plant with discounts up to BDT1,000/mt. The Davis Index for HMS 1&2 (80:20) settled at BDT25,750/mt inclusive of local taxes ex-yard Chattogram, down by BDT500/mt from the prior week. ($1=BDT84.87)

 

 

Metallics

 

CIS 

  • The weekly Davis Index for basic pig iron fob Black Sea rose by a dollar this week after a fresh cargo sale to China continued to support the market. The index settled at $314/mt fob Black Sea on Friday, up from $313/mt a week earlier.
  • Some market participants heard that a US mill had booked a vessel of BPI at $330/mt cfr Mobile but that has not been confirmed yet by counterparties. If confirmed, the price would represent a $5/mt increase in delivered US prices.
  • Earlier in the week, an exporter sold 5,000mt of BPI to Italy at $328/mt cfr, sending the market up by $8/mt for the week.
  • In the Izmir region, purchase prices for shipbreaking scrap declined by $8/mt to $242/mt delivered over a week.

 

US

  • The weekly Davis Index for basic pig iron (BPI) decreased by $2/mt from $327/mt cfr New Orleans to $325/mt cfr Nola on Thursday as offers remained parallel to sale prices into China. The most recent US BPI sale was confirmed at $320/mt cfr Nola in early June.
  • Producers offered material at $350-355/mt cfr Nola based on CIS-origin sales to China at around $357/mt cfr last week. However, US buyers are reluctant to match those price levels amid weak demand and sufficient availability of scrap at present.
  • Some market participants believe the BPI price will increase in the US due to Chinese activity and since production has been sold into October-November, while others say BPI prices have peaked and will trend downwards shortly as demand slows down in China.

 

India

  • In Mumbai, the Davis Index for sponge iron settled flat at Rs16,000/mt del mill and held at Rs18,800/mt delivered mill for sponge iron in Mandi. The bi-weekly Davis Index for sponge iron in Indore decreased by Rs50/mt to Rs19,200/mt del mill.
  • A shortage of scrap also persists in Ludhiana, North India with the bi-weekly index for sponge iron declining by Rs50/mt to Rs19,200/mt del mill.
  • In South India, the bi-weekly index for sponge iron increased by Rs50/mt to Rs16,200/mt del mill.

Finished steel

  • The daily Davis Index for billet rose by Rs300/mt ($3.98/mt) on Friday and settled at Rs27,400/mt ($364.11/mt) ex-works Mumbai amid healthy demand from steel re-rolling mills. The index for rebar remained unchanged at Rs30,800/mt ($409.30/mt) ex-works Mumbai.
  • In Raipur, rose by Rs400/mt ($5.31/mt) to Rs27,600/mt ($3.66/mt) ex-works on Friday due to an increase in pellet sponge prices and limited availability of steel semis. The daily Davis Index for rebar settled unchanged at Rs30,400/mt ($403.98/mt) ex-works Raipur.
  • In Mandi Gobindgarh, the daily index for ingot increased by Rs150/mt ($1.99/mt) from Thursday to Rs30,250/mt ($401.99/mt) ex-works.
  • India’s state-owned steelmaker Rashtriya Ispat Nigam Limited (RINL) or Vizag Steel has revised prices for July deliveries. The net price cut would be around Rs1,000/mt for rebar from the previous month.

 

Shipbreaking 

  • The Davis Index for Melting and Attachment settled unchanged from Thursday at Rs20,950/mt ($278.5/mt) and Rs21,950/mt ex-Alang on Friday.
  • Demand from Mandi Gobindgarh declined this week but there was a gradual increase in demand in Gujarat as mills which were shut down due to COVID-19 restarted.
  • Most of the ships are being diverted to Pakistan and Bangladesh as these regions have an edge over India in terms of a quicker dismantling process. The dismantling rate is 44pc higher, compared to India. Moreover, the demand from the end-users in those regions is also relatively higher

The daily Davis Indexes for 14Ani,10Ani, and 1kg plates settled flat at Rs27,950/mt, Rs27,750/mt, and Rs22,250/mt ex-Alang respectively. The index for 5kg declined by Rs100/mt to Rs26,350/mt ex-Alang, on low trades.

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