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Ferrous Market Update: Jun 21-25

Ferrous Market Update 06/25/2021

 

Turkey

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  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) was unchanged on Friday.
  • Suppliers from the USA and the Baltic region have maintained offers at a minimum level of $500/mt cfr for HMS 1&2 (80:20) after a booking at $499/mt cfr for the grade was reported on Thursday. However, most Turkish mills consider this level as unacceptable and have continued targeting $490-495/mt cfr, resulting in a lack of trade this week.
  • Negotiations may revive in Turkey next week as mills will begin looking for ferrous scrap bookings for August shipments. In the meantime, in Asia a fresh transaction was fixed at $518/mt cfr for A3 material from Russia.
  • In the Turkish domestic market, spot rebar prices were flat on Friday. Icdas raised its local rebar prices by TRY60/mt ex-works Biga and ex-works Istanbul. All domestic prices include 18pc VAT. In the export market prices for Turkish rebar remained also unchanged. ($1=TRY8.75) 

 

Turkey domestic

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  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey inched up by TRY47/mt on Monday after two integrated steel mills raised their purchase prices.
  • Erdemir and Isdemir announced new purchase prices for DKP grade on Jun 18, increasing them by TRY75-150/mt, while the other steelmakers kept their purchase prices at previous levels.
  • Purchase prices for shipbreaking scrap in the Izmir region remained flat for the fourth consecutive week. ($1=TRY8.77) 

 

CIS

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  • The weekly Davis Indexes for HMS 1&2 (80:20) or A3 scrap in the Baltic Sea and the Black Sea regions of Russia were flat on Monday due to the lack of trading.
  • No sales from Russia were reported on weak demand for imported ferrous scrap in Turkey, with suppliers from St Petersburg who were offering HMS 1&2 (80:20) at $500-505/mt cfr not finding any takers as buyers dropped bids to $490-495/mt cfr after booking the same grade at around $500/mt cfr from the USA around ten days ago.
  • Some exporters from Rostov-on-Don reduced their offers for A3 material to $475/mt from $485/mt cfr last week but failed to attract buyers at those prices.
  • Russia’s collection prices remained at previous levels in a subdued export market. The weekly Davis Index for A3 scrap was flat in St Petersburg and Rostov-on-Don docks on Monday. ($1=RUB73.13) 

 

Europe

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  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region dropped by €9/mt on Tuesday in a challenging export market.
  • Collection prices for ferrous scrap decreased in the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) as Turkish importers remained inactive, anticipating lower prices. Inflow of the material to European docks declined as domestic market is still strong.
  • Negotiations with Turkish mills are currently slow with some European suppliers offering HMS 1&2 (80:20) at around $495/mt cfr face no interest from buyers. (€1=$1.19) 

 

UK dockside

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  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices edged up by £3/mt ($4/mt) delivered dockside, on Tuesday.
  • UK dockside ferrous scrap purchase prices increased by £2-3/mt over the past week, after bulk exporters raised rates to secure sufficient volumes to fill pre-booked vessels. 
  • The upper end of the range for HMS 1&2 (80:20) has climbed towards £290/mt delivered dockside, while the lower end of the range remained in the mid £270/mt. 
  • These latest dockside purchase price hikes will no doubt cut into margins, given that benchmarks on major seaborne trade routes have witnessed a modest pullback over the same period. 
  • Davis Index’ HMS 1&2 (80:20) US-origin ferrous scrap index declined by $8.22/mt cfr Turkey over the past week. 
  • The weekly indices for north and south UK OA (Plate & Structural) nudged £2/mt higher and UK 5A/5C (frag feed) remained unchanged during the week. (£1=$1.39)

 

Spain 

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  • Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk weekly ferrous scrap indices fell by €5/mt ($6/mt) cfr on Friday. 
  • Spanish ferrous scrap import prices tracked lower over the past week in response to a raft of fresh offers from the UK, north European, and Baltic-based shortsea suppliers. 
  • A Spanish trader commented that suppliers might be long on material and are fearful of a potential retracement in ferrous scrap prices while holding large inventories. 
  • These views were echoed by a UK-based small bulk supplier who noted that one of the country’s largest exporters had cut dockside rates and was shifting material between its yards by vessel. 
  • Davis Index’s Turkish HMS 1&2 (80:20) ferrous scrap import index has softened by $8/mt over the past 10 days cfr Turkey. That said, Davis Index has confirmed that a large German steel producer has paid €510-515/mt for obsolete ferrous scrap grades (E3), equivalent to HMS #1, for early July settlement. Thus the spread between German mill settlements and northern European HMS1&2 (80:20) dockside purchase prices is now at  €150/mt.
  • With German mills paying up to divert material from traditional export markets, this will constrict the regional supply-demand balance further and result in this recent pullback being only temporary. 
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices were unchanged during the week. (€1=$1.19)

 

Germany domestic

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  • Davis Index’s monthly German ferrous scrap indices rose by €28-65/mt ($33-77/mt), depending on grade and location, following the conclusion of June mill-yard negotiations. 
  • German ferrous scrap benchmarks skyrocketed this month as steel mills submitted opening bids of €40/mt up for obsolete and €50/mt higher for prime grades versus the prior month. 
  • High domestic capacity utilization rates and robust export demand prompted German steel producers to revise their bids by a further €10/mt to retain material locally. 
  • Demand for Sorte 5 (E5) grades, equivalent to turnings, was almost non-existent as buyers shunned low, relatively “dirty” grades, with prices only climbing by €30/mt on average. 
  • This was further typified by an increase in the spread between Sorte 3 (E3) and Sorte 4 (E40), which rose from €2-5/mt to €10-15/mt given the scarcity and demand for these grades. 
  • North German ferrous scrap indices increased by €28-57/mt delivered mill for Sorte 1 (E1), Sorte 2 (E2), Sorte 3 (E3), Sorte 4 (E40), Sorte 5 (E5), and Sorte 8 (E8) and jumped by €30-62/mt for these grades in East Germany, by €45-63/mt in South Germany and by €33-65/mt delivered mill in West Germany. (€1=$1.19)

 

US dockside

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  • US East Coast collection prices for ferrous scrap were rangebound for the second straight week as recent export activity decelerated and prices gradually ticked down. Houston dock prices were flat on Tuesday after a price boost last week as dockside moves caught up with domestic levels.
  • The Davis Index for US HMS 1&2 (80:20) exports to Turkey has shown little movement over the past month. However, it began to fall slightly over the past week. The index for the grade is at $497.50/mt cfr compared to $503.48/mt cfr on Jun 15. The extended monthly view shows a downside compared to $513.19/mt cfr for the export-grade on May 25. 
  • Dockside sales for #1 HMS on the East Coast are mostly unchanged and remained between $370-410/gt on Tuesday based on dock location and base price from prior sales. Market participants assumed last week that East Coast dock prices peaked in the short term and now expect to see modest price drops over the next week or so.
  • In Boston, prices modestly increased to pull alongside levels at surrounding docks. The weekly Davis Index for export yard #1 HMS climbed by $7/gt and P&S 5ft rose by $6/gt delivered Boston dock. Shredder feed moved up by $12/gt delivered Boston export yard. 
  • The weekly Davis Index for export yard buying prices in New York were flat for #1 HMS and P&S 5ft delivered and shredder feed ticked up by $3/gt delivered New York dock. 
  • In Philadelphia, the Davis Index for export yard collection prices inched up by $1/gt for #1 HMS delivered while P&S 5ft was flat at Philadelphia dock. The index for shredder feed ticked up by $2/gt delivered. 
  • In Houston, the weekly Davis Index fell by $3/gt for #1 HMS delivered and remained unchanged for both P&S 5ft and shredder feed delivered Houston dock. 
  • US West Coast dock prices trended unchanged on the West Coast on Tuesday, mirroring the East Coast’s rangebound activity. 
  • The daily Davis Index for US-origin HMS 1&2 (80:20) fell by $5.98 to $497.50/mt cfr Turkey on Tuesday compared to Jun 15. Several market participants are concerned that Turkish import prices may decline but are hopeful that the recent increase in Turkish domestic scrap prices and a strong US domestic scrap market may buoy export sentiment. The US July ferrous trading week has some expecting an increase of $20-30/gt on June settled prices while others, concerned about the export effect, are anticipating a sideways move. 
  • Iron ore prices remain firm, supporting ferrous scrap prices, despite declining to $206.50/mt cfr China from over $220/mt cfr early last week.  
  • Bulk scrap buys from Asian buyers are expected to remain strong on tight global inventories. South Korean and Vietnamese buyers have increased bids for Japanese scrap amid firm domestic scrap prices in Japan over the past week. Domestic scrap prices have also risen in Malaysia, South Korea, Thailand, and Vietnam, which supports the firm import scrap offers on buying needs. 
  • The weekly Davis Indexes in Portland for export yard scrap remained unchanged with #1 HMS, P&S 5ft and shredder feed flat at the Portland export yard. 
  • In San Francisco, the Davis Indexes were flat for #1 HMS, P&S 5ft and shredder feed delivered. 
  • The Los Angeles dock prices also remained unchanged this week for #1 HMS, P&S 5ft and shredder feed delivered.
  • The container market in LA continues to be quoted at around $400-405/mt cfr with some noting the slight downward pressure by buyers while others see the possibility of an increase of $5-10/mt may be possible in containers as July trading consumes scrap inventories. 

 

US domestic

 

  • Ferrous scrap prices are anticipated to rise in July trading as several US markets remain strong on tight supply and healthy mill demand.
  • Early projections view prices ranging from flat to up $20-30/gt across all grades, over June settled levels though some forecast the July market possibly rising by $50/gt or more, analogous to last month, on numerous factors driving the upward market strength. Still, the predominant view is a gain of $30/gt on domestic mill needs, high finished steel prices, tight scrap and finished steel inventories, and continued scrap export demand. 
  • Mills and scrap dealers are reportedly holding low inventories on the ground amid persisting logistics issues. Scrap yards throughout the US are struggling to get sufficient trucks and rail cars to ship material on prior orders, further impacting sentiment.
  • The market has been fueled by export activity lately, despite the recent, intermittent pauses. US-origin HMS 1&2 (80:20) exports to Turkey continue pushing along without much downward pressure, though also without noteworthy upside.
  • Prices for US-origin HMS 1&2 (80:20) have been rangebound hovering near $500/mt cfr since first reaching that level in early to mid-May. The Davis Index for US HMS 1&2 (80:20) stood at $498.75/mt cfr on Monday, down by $14.44/mt from $513.19/mt cfr exactly a month ago and down $1.25/mt from $500/mt cfr on Jun 7. 
  • Some sellers that provide to bulk exporters off the East Coast are awaiting possible dockside price decay by next week, though most bulk and containers exporters anticipate continued demand from emerging markets and some moves to electric arc furnaces in Asia that will place pressure on scrap supplies.
  • Mills in the vicinity of the East Coast such as the Philadelphia market, continue with minimal scrap buying programs. Some sellers in this region would not be surprised to see July domestic price efforts by mills remain unchanged or drop slightly, but the latter is unlikely given the overall national trend and opportunity to move scrap to higher demand regions.
  • Meanwhile, in the Midwest and Ohio valley, demand is expected to be strong in July on restricted supply, barring shredded and shredder feed in Chicago. This material has been accruing in the market and left without a home as Southside Recycling’s shredded facility still waits for final permitting. The loss of this major facility operating in the area has caused local shredders in Chicago to be able to continue paying under market for intake feed, estimated at about $20-30/gt lower than standard.
  • Ferrous increases in summer are contrary to historical scrap price movements that are typically influenced by mill maintenance slowdowns and increased demolition work. The industry does not foresee this traditional downside occurring in the near term and maybe throughout the year due to the supply and demand changes influenced by COVID-19 and the ongoing recovery.
  • Prime grades including pig iron, and secondary grade, P&S 5ft have been in very limited supply boosting demand for scrap substitutes such as blast furnace iron or other similar material. Basic pig iron was at $672/mt cfr New Orleans last week and has maintained a gradual price growth since late 2020 when it first exceeded $500/mt cfr Nola, then surpassed $600/mt cfr Nola in May.
  • A large disparity remains between finished steel and #1 busheling prices, which is maintaining bullishness on the scrap supply side. In Chicago, #1 busheling changed hands at $610/gt delivered mill during June trading. For comparison, the spread between HRC and #1 busheling has averaged between $250-300/gt over the past 10 years.
  • US hot-rolled coil (HRC) prices have been climbing dramatically since the end of 2020. HRC is now priced at $1,829-1,873/mt ($1,660-1,700/nt) fob US mill in the spot market and seems to be heading higher. Prices for HRC have risen by $66-110/mt compared to Jun 4 and $440-463/mt against Mar 22. 
  • Cold-rolled coil prices continued trending about $200-210/mt higher than HRC prices and galvanized coil about $300-310/mt over HRC in the spot market. 
  • US rebar pricing is at about $1,036/mt ($940/nt) fob US mill at present with bookings available for late August to early September or about 10-12 weeks lead times. Immediate availability from mills is difficult according to market participants but distributors have been restocking so balancing that steel availability at higher prices. Prices have risen by $99-165/mt against rebar prices in mid-March. 
  • Market participants note that trucking and rail logistics are playing a role in supporting finished steel prices. Moreover, while demand is strong many of the mill sales are for restocking, adding to their hopes or expectations that prices will temper in Q4 2021 despite many steel analyst groups reporting their expectations of prices continuing their current trajectory until early 2022.
  • Rebar distributors are managing inventories from mill floors adding to the potential of a deeper price drop should prices dampen according to several rebar fabricators. The middle buying opportunity is contributing to inflationary prices.

 

US containers

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  • US containerized ferrous scrap prices softened on the West Coast but trended up on the East Coast for the third consecutive week.  
  • East Coast trades are supported by expectations that US domestic scrap will trade sideways to up $20-30/gt in the early July ferrous trading week. Several Indian buyers noted that they encountered firm offers from the US and other competing international sources on scrap availability and over strong domestic demand.  
  • The weekly Davis Indexes in New York rose by $3-7/mt on Thursday after an increase of $8-11/mt in the prior week. The index for #1 busheling rose by $5/mt while HMS 1&2 (80:20) climbed by $7/mt fas. P&S 5ft and shredded grew by $3/mt and $4/mt, respectively. Machine turnings rose by $6/mt. 
  • Prices on the West Coast had increased last week following surging demand and slightly better container availability. However, Asian buyers are showing weaker demand and a wait-and-see approach as July approaches. A few regional sellers, on the other hand, expressed a belief that scrap is undervalued against iron ore prices and that container prices could see slight increases in the coming weeks.  
  • The recent domestic scrap price increases in Japan and strong demand are expected to continue supporting US-origin ferrous scrap prices. Additionally, iron ore prices remain firm with only marginal declines that are maintaining Fe 62pc at around $216/mt cfr North China.  
  • The West Coast was reported as mostly flat by sellers but with buying prices at the lower end below those experienced in the previous week. For example, HMS 1&2 (80:20) deals were reported at $390-415/mt fas with most deals at $395-405/mt fas against more deals at $400-410/mt fas last week.  
  • In Los Angeles, the index for #1 busheling fell by $7/mt as HMS 1&2 (80:20) trended unchanged at $403/mt fas. Shredded dropped by $4/mt and P&S 5ft also ticked down by $3/mt. 
  • San Francisco’s indexes trended down slightly this week after rising in the prior week with #1 busheling, P&S 5ft, and shredded all dropping by $3/mt, respectively. HMS 1&2 (80:20) fell by $1/mt. 
  • In Seattle too, the indexes softened slightly amid uncertainty despite buyer demand as some believe that Turkey may further decrease import buying prices by $5/mt in upcoming deals. The weekly Davis Indexes for HMS 1&2 (80:20), P&S 5ft and shredded fell by $2/mt each. The index for #1 busheling declined by $3/mt. 

 

Mexico

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  • Price growth in the Mexican ferrous scrap market slowed down this week to an average increase of MXN188/mt ($9.49/mt) from MXN318/mt last week. 
  • Scrap shortages and continued demand from the southern US have kept ferrous scrap prices high in the Mexican market, while tight supply has generated competition among buyers seeking to secure material. 
  • The weekly Davis Index in North Mexico for #1HMS remained unchanged delivered Mexico consumer on Friday, while P&S 5ft and shredded rose by MXN142/mt and MXN292/mt delivered, respectively. Machine shop turnings fell by MXN87/mt delivered and #1 busheling increased by MXN425/mt. 
  • In Central Mexico, the weekly Davis Index for #1HMS climbed by MXN250/mt delivered Mexico consumer, P&S 5ft rose by MXN200/mt, shredded increased by MXN200/mt, and machine shop turnings rose by MXN200/mt delivered. The index for #1 busheling went up MXN150/mt delivered. Prices for this grade have continued to climb north for the fourth successive week and increased to their highest level in the country in Central Mexico on Friday. 
  • Bajio Mexico’s weekly index increased for #1HMS P&S 5ft, shredded, machine shop turnings, and #1 busheling by MXN266/mt delivered Mexico consumer, MXN250/mt, MXN108/mt, MXN100/mt, and MXN350/mt delivered, respectively. (MXN1=$0.05)

 

Japan  

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  • The weekly index for #2 HMS, Wednesday, settled unchanged on both, fas and fob Japan basis. Japanese P&S 5ft (small bulk) prices rose by $10/mt.
  • In the small bulk market, Japanese #1 busheling (Shindachi) offers were at JPY61,000/mt fob. The weekly index for the grade jumped by JPY1,500/mt to fob and fas Japan. The weekly Davis Index for shredded on Wednesday, climbed by JPY1,000/mt while the index for HS was flat on a fas basis.
  • The index for Japanese HMS 1&2 (50:50) was up by $5/mt cfr Haiphong. The index for Japan-origin HMS 1&2 (50:50), Wednesday, was flat cfr Taiwan.
  • Tokyo Steel increased its ferrous scrap purchase bids by JPY1,000-JPY2,000/mt ($9-$18/mt) del plant, depending upon the grade, after keeping it unchanged since May 18. Demand in Japan remains healthy and has supported scrap prices. ($1 = JPY110.76) 

 

South Korea  

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  • The weekly Davis Index for domestic Heavy A rose by KRW32,500/mt ($28.63/mt) and KRW10,000/mt ($8.81/mt) del Incheon del Pohang, respectively.
  • The weekly Davis Index for domestic Light A was flat del Pohang.
  • In the domestic market, scrap prices rose on a supply crunch and a strong demand. The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, went up by $6/mt cfr South Korea.
  • Mills were reluctant to accept prices above $450-460/mt cfr South Korea despite improvement in domestic demand.
  • The weekly Davis Index for P&S 5ft, Wednesday, rose by $6/mt cfr South Korea, with the index for #1 HMS and shredded rising by the same amount cfr South Korea. ($1 = KRW1,127.60) 

 

Taiwan  

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  • The weekly Davis Indexes for domestic HMS 1&2 (80:20) remained flat del Northern and Southern mill.
  • Feng Hsin kept domestic scrap purchase prices unchanged this week in a quiet market. Prices are unlikely to rise for a while due to wet weather and weak billet demand in the region.
  • The weekly Davis Index for containerized US-origin HMS 1&2 (80:20), Wednesday, went up by $10/mt cfr Taiwan. The weekly Davis index for HMS 1&2 (50:50) went up by $5/mt cfr Taiwan. Freight rates and global steel demand continue to remain firm.
  • The weekly Davis Index for containerized #1 HMS, Shredded, P&S 5ft, and #1 busheling jumped by $7/mt cfr Taiwan on Thursday. The weekly index for HMS 1 & 2 (80:20) went up by $6/mt cfr Taiwan on Thursday. ($1 = TWD27.91)

 

China

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  • The weekly Davis Index for HMS (80:20) went up by CNY250/mt to del mill on Tuesday. Shagang steel has cut rebar prices for the third time in June.
  • Domestic billet prices in China rose by CNY20/mt in a day to $4,840/mt ex Tangshan on Friday inclusive of VAT, but down by CNY120/mt from June 18. Steel futures rose despite price control measures from the government. Iron ore prices for ferrous content 62pc dropped below $215/mt cfr North China. Asian billet and HRC export prices continued to fall. ($1 = CNY6.46) 

 

Vietnam 

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  • The weekly Davis Index for HMS 1&2 (80:20) in Vietnam increased by VND200,000/mt ($8.69/mt) delivered Southern mill. Ferrous scrap prices rose due to bullish Japanese offers and tight supply, but the demand stays low.
  • The weekly Davis index for containerized #1 HMS, Thursday, was up by $8/mt. cfr Vietnam The weekly indexes for shredded rose by $7/mt, P&S 5ft by $8/mt, and #1 bushelling by $8/mt cfr Vietnam port. ($1 = VND23,025) 

 

Indonesia

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  • The weekly Davis Index for P&S 5ft fell by $4/mt cfr Indonesia port on Thursday. Bids for P&S 5ft were at $506/mt.
  • The weekly Davis Indexes for shredded and #1 busheling were down by $4/mt cfr Indonesia port. Trading in the market remains slow. ($1=IDR14,409.55)

 

Thailand

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  • The weekly Davis index for domestic HMS 1&2 (80:20) rose by THB350/mt ($11.03/mt) del Rayong mill. Thai mills were silent this week. ($1 = THB31.80) 

 

Malaysia 

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  • The weekly Davis Index for HMS 1&2 (80:20) settled flat del eastern mill and del western mill on Tuesday. Malaysia is under lockdown until June 28. ($1 = MYR4.16)

 

India 

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  • Indian demand remained subdued for imported shredded, P&S, and busheling amid firm offers. Most opted for HMS from the UAE for their immediate requirements amid a sharp drop in prices by $15-20/mt.
  • Domestic steel prices and sales were weak while the raw material supply, including iron ore, sponge iron, and domestic scrap, remained tight.
  • The daily Davis Index for containerized shredded, Friday, rose by $2.5/mt cfr Nhava Sheva. From the prior Friday, the index dropped by $3.43/mt. Only a few sellers were in the market for containerized shredded on tight supply.
  • The daily Davis Index for US-origin HMS 1&2 (80:20) on Friday was down $1.25/mt. From a week ago, the index declined by $8.75/mt cfr. In Chennai, weak steel demand kept imported demand standstill. A gap of $25-30/mt between offers and bids also impacted trading.
  • The daily index for UAE-origin HMS 1&2 (80:20) rose by $2/mt cfr Nhava Sheva. From June 18, the index dropped by $16/mt.
  • The Davis indexes for P&S and #1 busheling were down by $7/mt and $5/mt, respectively, from June 18.
  • Offers were below $610-615/mt fob India for billet exports. 

 

India domestic

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  • Domestic ferrous scrap prices declined this week as demand from the end-users remained low. The index for HMS 1&2 (80:20) fell by Rs1,000/mt ($13.47/mt) del Mandi Gobindgarh, and the index for HMS 1&2 (80:20) declined by Rs400/mt del Mumbai mills from last week.

 

Pakistan  

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  • Pakistani mills resumed inquiries for imported scrap amid a revival in steel demand. After a few deals, sellers raised prices as supply remains tight. Elevated container freight rates and low vessel availability also pushed asking prices up.
  • The daily Davis Index for containerized shredded, Friday, cfr Port Qasim was up by $3.5/mt. But from last Friday, the index declined by $1.79/mt. Most offers on Friday were at $535-540/mt cfr Qasim. Scrap demand could pick up on limited inventories.
  • A revival in Turkish bulk ferrous scrap demand and announcement of Russian export tax on steel and non-ferrous metals during August-December could boost global steel prices.

The Davis Index for UAE-origin HMS 1&2 (80:20), Friday, was up by $2/mt cfr Port Qasim from a day ago but down by $17/mt from last Friday.

  • Amid tight supply for ferrous scrap and the resulting rise in input costs, major rebar producer mills, including Amreli Steel, Agha, Faizan, Abbas, and Naveena Steel, increased asking rates PKR5,000-5,500/mt effective June 24. The weekly Davis Indexes for rebar rose by PKR5,000/mt ex-works Karachi and PKR5,250/mt ex-works Punjab.
  • The index for domestic Bala billet increased by PKR500/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, ex-yard Lahore, were up by PKR500/mt and PKR350/mt, respectively.
  • The Pakistan Association of Large Steel Producers urged the government to reconsider its decision to remove the steel industry from the Federal Excise Duty regime, expected to result in heavy losses. ($1=PKR157.32) 

 

Bangladesh

  •  
  • Large-scale mills in Bangladesh were active for both containerized and bulk bookings to refill inventories. Elevated freight rates and a global shortage of containers have kept landed costs for containerized scrap high.
  • Steel demand in the Bangladesh domestic market remained affected due to the monsoon. Ahead of the financial year close, mills focused on closing their books.
  • The daily Davis Index for HMS 1&2 (80:20) from Latin America, Friday, settled up by $1/mt cfr Chattogram. The index declined by $4/mt from the prior Friday.
  • Dubai-origin HMS #1 and P&S traded at $540-545/mt cfr Chattogram. The daily indexes for UK-origin, US-origin, and Australia-origin HMS 1&2 (80:20) were unchanged on Friday. From June 18, these indexes were down by $3-5/mt.
  • The daily Davis Index for containerized shredded cfr Chattogram on Friday rose by $1.75/mt. But the index dropped $3.79/mt from last Friday.
  • The spread between HMS and industrial-grade scrap widened to a record $50-60/mt. The weekly indexes for P&S and #1 busheling were both down by $5/mt.
  • The availability of domestic scrap in Bangladesh was tight. The weekly index for ship scrap equivalent to P&S rose by BDT500/mt ex-yards.
  • The weekly index for billet was unchanged on slow trading. Ship recyclers decided to wait for prices to cool off amid weak demand and seasonal slowness.
  • Amid limited construction demand, the weekly indexes for rebar from the large, medium, and small-scale mills settled unchanged ex-works on Friday from a week ago. ($1=BDT84.7) 

 

Metallics

 

US/CIS

 

  • The weekly Davis Index for basic pig iron (BPI) dropped by $27/mt to $645/mt cfr New Orleans port Friday as fresh transactions concluded this week at lower prices on falling demand. The weekly Davis Index for CIS BPI fell more significantly, by $37/mt, to $605/mt fob Black Sea under additional pressure from higher freight rates.
  • A deal for around 50,000mt of Russian BPI was closed recently at $645/mt cfr Nola for July shipment, following a sale at $657/mt cfr Nola earlier this week. CIS offers were heard in the range of $650-655/mt cfr Nola while US bids were as low as $640/mt cfr Nola.
  • US importers have voiced concern over Russia’s potential 15pc export tax for pig iron that could have a minimum duty of $115/mt, which could impact future pricing. In the short term, buyers expect to achieve lower prices as some exporters might be interested in selling ahead of the new tax implementation on Aug 1. However, in the long term, prices for pig iron may increase because Russia, being among the key global suppliers, would face higher duties.
  • The Davis Index for nodular pig iron (NPI) imports was flat at $748/mt cfr Nola. The grade is in tight supply with offers entailing future shipment. Most recent offers for NPI continue firm at $750-780/mt cfr Nola with bids just under this low point.
  • US hot briquetted iron (HBI) imports were unchanged at $470/mt cfr Nola as new offers and bids were lacking for the grade. The price level for this material is calculated to include the latest offers along with price comparisons with similar grades.
  • The weekly Davis Index for CIS pig iron in Italy dropped by $20/mt to $650/mt cfr on Friday as a Ukrainian supplier sold a small cargo at this level.
  • In Turkey, demand remained weak and bids from mills decreased to $615-620/mt cfr after a large steelmaker booked a cargo from India at $630/mt cfr last week.
  • A new transaction for pig iron was fixed in Asia with an exporter from the Far East of Russia selling 5,000mt of the material at $650/mt cfr to Japan.

 

India

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  • The index for sponge iron declined by Rs1,300/mt del Mumbai mills and Rs200/mt del Mandi Gobindgarh mill from a week ago. Sponge manufacturers reduced offers amid low sales.

 

India semi-finished and finished steel

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  • The index for billet in Mumbai fell by Rs1,000/mt ($14/mt) ex-works from last Friday following a decline in rebar prices. The index for rebar dropped by Rs1,200/mt ($17/mt) ex-works amid continued weak sales.
  • In Raipur, the index for billet fell by Rs700/mt ($10/mt) ex-works from the previous Friday due to limited buying from the re-rolling mills. The index for rebar settled down by Rs1,000/mt ex-works.
  • In Mandi Gobindgarh, the index settled down by Rs800/mt ex-works from the previous Friday with a decline in scrap prices.
  • In Chennai, the bi-weekly Davis Index for billet decreased by Rs1,000/mt on Thursday as supply eased. Most mills are operating at 80-90pc; however, demand continues to be tepid.

 

Shipbreaking 

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  • Shipbreaking scrap prices declined this week amid low demand from the rolling mills in Gujarat and Mandi Gobindgarh. Sales of finished steel were weak, keeping mills away from stocking raw material.
  • The index for HMS attachments and Melting declined by Rs1,000/mt ($13.47/mt) ex-Alang from a week ago.
  • The index for 14Ani declined by Rs200/mt ex-Alang.
  • The arrival of vessels was low compared to Pakistan and Bangladesh, but low domestic demand forced shipbreakers to reduce offers.
  • The index for 2kg plates declined by Rs900/mt ex-Alang in the same period.

 

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