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Ferrous market update: June 14-18

Ferrous Market Update 06/18/2021

 

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) remained unchanged on Friday.
  • Turkish mills continue bidding $490-495/mt cfr for HMS 1&2 (80:20) from the USA and the Baltic region, while suppliers from these regions are targeting above $500/mt cfr. 
  • In the meantime, a European exporter reduced offers after the euro weakened against US dollar. The seller is now asking $496/mt cfr for HMS 1&2 (80:20) and $511/mt cfr for bonus material.
  • Spot rebar prices in the Turkish domestic market inched up by TRY20/mt from the lower end of the previous range to TRY7,250-7,350/mt ex-works, including 18pc VAT on Friday. ($1=TRY8.73)

 

Turkey domestic

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey increased by TRY137/mt on Monday as most mills raised their purchase prices.
  • Purchase prices for shipbreaking scrap in the Izmir region remained unchanged for the third successive week. ($1=TRY8.41)
     

CIS

  • The weekly Davis Indexes for HMS 1&2 (80:20) or A3 scrap were both unchanged on Monday.
  • A St Petersburg supplier sold HMS 1&2 (80:20) at $498/mt cfr and bonus material at $508/mt cfr to a Turkish mill early last week, while other exporters preferred to wait, in anticipation of being able to strike deals at $510-515/mt cfr for HMS 1&2 (80:20) after demand improved.
  • Scrap availability from Rostov-on-Don to Turkey was limited as most recyclers stepped back and focused on sales in the domestic market, where exporters found more attractive prices. Still, a transaction was fixed from Far East Russia, in which A3 scrap changed hands at $488/mt cfr to South Korea.
  • Collection prices in Russia didn’t change significantly. Thus, the weekly Davis Index for A3 scrap climbed by RUB125/mt in St Petersburg dock and remained flat in Rostov-on-Don dock. ($1=RUB72.09)

 

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region increased by €19/mt on Tuesday as exporters competed with European mills for the material.
  • Ferrous scrap suppliers from the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) raised collection prices amid tough competition and strong demand for scrap from the local market. European exporters are firm about their offers and are refusing bids from Turkey below $500/mt cfr for HMS 1&2 (80:20) as they can redirect their cargoes to other destinations. (€1=$1.21)

 

UK dockside

Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices edged up by £1/mt ($1/mt) delivered dockside, on Tuesday.

  • UK dockside ferrous scrap purchase prices increased by £1-2/mt over the past week, as the range between the highest and lowest paid for material narrowed.
  • The bulk of dockside buyers were heard to have paid between £275-285/mt, but a large exporter remained £5/mt behind the lower end of the range.
  • UK dockside rates have remained firm with exporters trying to secure sufficient volumes to fill pre-booked vessels despite a modest pullback in prices on major seaborne trade routes.
  • The weekly indices for north and south UK OA (Plate & Structural) rose by £2/mt delivered dockside and the weekly north and south UK 5A/5C (frag feed) ferrous scrap indices remained unchanged. (£1=$1.41)

 

UK domestic

Davis Index’s monthly UK 1&2, 3B, and OA ferrous scrap consumer indices increased by £15-20/mt ($21-28/mt) delivered mill following the conclusion of mill-yard negotiations in mid-June.

  • Domestic mill ferrous scrap purchase prices have largely tracked corresponding developments of more liquid, higher frequency UK dockside benchmarks, which have been driven by robust export demand and stronger competing hot metal production costs.
  • UK HMS 1&2 (80:20) dockside rates have increased by a net £19/mt over the past four weeks, as British bulk exporters have had to raise purchase prices to ensure sufficient volumes are secured to fill pre-booked vessels to Turkey.
  • Signs have emerged that the tightness in new production grades may be subsiding in response to a sharp rebound in manufacturing activity over the past three months, climbing at a record pace to 65.6 in May.
  • Davis Index’s monthly 4A/4C, 8A/8B, 12A/C, and 12D ferrous scrap consumer indices all increased by £20/mt delivered mill. (£1 = $1.41)

 

Spain 

  • Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk weekly ferrous scrap indices jumped by €22-25/mt ($26-30/mt) cfr, on Friday.
  • Spanish ferrous scrap import prices increased over the past week, as small bulk shortsea suppliers crystallized higher offers into real transacted levels.
  • In fact, some exporters bested last week’s offers of €400/mt for HMS 1&2 (80:20) cfr Northern Spain and have since refreshed offers to slightly higher levels.
  • The small ferrous bulk coaster market had initially lagged pricing action seen in the competing deepsea market but have since caught up following the latest hikes.
  • With benchmarks in major seaborne trade routes, particularly to Turkey, flatlining over the past couple of weeks, Spanish buyers feel there will be a degree of price stability in the next few weeks.
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices increased by €30/mt fob during the week. (€1=$1.19).

 

Spain domestic

  • Davis Index’s E1 (old thin) and E3 (old thick) benchmarks climbed by €2-3/mt while E40 (shredded) jumped by €16/mt delivered mill in Spain.
  • Spreads for Spanish E3 (HMS equivalent) and E40 (shredded) widened by €15-20/mt over the past month following the conclusion of mill-yard negotiations in mid-June.
  • Some mills have been opting to procure shredded material in response to the scarcity of prime scrap grades from impoverished manufacturing activity. A Spanish mill buyer commented that the recent resurgence in import offer prices over the past few weeks had encouraged them to source more material from local suppliers.
  • In fact, Davis Index has heard that small bulk import cargoes of HMS 1&2 (80:20) are now offered at close to €400/mt cfr Northern Spain from UK and EU exporters.

 

US dockside

  • US East Coast collection prices for ferrous scrap were rangebound this week consistent with the latest export movements. This follows gradual increases over the past month, and last week’s boost driven by healthy domestic trade activity.
  • Houston’s dock prices increased for the second straight week, closing the gap from hefty domestic gains last week and are more in line with local markets. However, Houston dock prices may have peaked for now considering export prices along with rising freight costs. 
  • Dockside sales for #1 HMS on the East Coast are flat and continued to range between $370-410/gt on Tuesday based on dock location and base price from prior sales. For the past week, some market participants assume, East Coast dock prices may have also peaked in the short term.
  • Moreover, mills within the span of East Coast markets have reduced buying programs lately while scrap yards report steady flows, which is also cutting into demand and keeping a lid on larger dockside price increases.
  • The Davis Index for US HMS 1&2 (80:20) exports to Turkey have held steady for the past month. Longer-term, monthly activity continues with modest change.
  • In Boston, the weekly Davis Index for export yard #1 HMS and P&S 5ft remained unchanged delivered Boston dock. Shredder feed held firm as well. 
  • The weekly Davis Index for export yard buying prices in New York were flat for #1 HMS, P&S 5ft and shredder feed delivered New York dock. 
  • In Philadelphia, the Davis Index for export yard collection prices inched up by $1/gt for #1 HMS, P&S 5ft rose by $3/gt delivered and Shredder feed remained unchanged. 
  • Houston’s weekly Davis Index moved up by $20/gt delivered for #1 HMS and rose by $9/gt for P&S 5ft. Shredder feed increased by $18/gt delivered.
  • Los Angeles’ dock prices did not receive mass price announcement changes. Thus, the indexes rose by $2/gt as some deals gained slightly within the range for #1 HMS, P&S 5ft and shredder feed. 
  • US West Coast dock prices climbed on Tuesday amid rising scrap export demand, firm iron ore prices, robust global steel prices, and strong demand in the US domestic market. 
  • Japanese export scrap prices are expected to soften slightly on weaker demand but remain strong as steel mills announce unchanged or slightly higher finished steel prices and mostly flat domestic scrap purchase price bids. Domestic scrap prices are mostly flat in other Asian countries where steel mills are assessing demand due to some weakness because of seasonality and export uncertainty. 
  • South Korea and China encountered slight increases in domestic scrap prices over the past week. Prices for Chinese billet declined from a month ago but are firming up again this week. Chinese HRC, rebar, and billet prices in fob terms dropped by about 10pc compared to a month ago but are showing resilience as policies and demand collide in the country which has a large influence in import buying activity across Asia. 
  • Scrap is supported globally by strong iron ore prices that are above $222/mt cfr China for Fe 62pc. 
  • The weekly Davis Indexes in Portland for export yard scrap increased by $6/mt on #1 HMS as P&S 5ft rose more steeply by $16/gt delivered export yard. Shredder feed continued to climb for some sellers, but buyers also sought to adjust prices to a lower buying range resulting in an index fall of $3/gt delivered. 
  • In San Francisco, the Davis Indexes climbed by $6/gt delivered for #1 HMS, by $2/gt for P&S 5ft, and by $7/gt for shredder feed. Several small scrap yards reported increases in buys but were within the range already reflected in previous weeks. Larger dealers could achieve $380-390/gt on P&S 5ft on some deals. 

 

US containers

  • US containerized ferrous scrap prices trended up on the West Coast from mostly rangebound levels last week, while on the East Coast, they continued to rise for the second successive week.  
  • Market participants noted an improved steady stream of inquiries. Some noted better container availability week-on-week while others witnessed a deterioration in container access, especially on Thursday.  
  • Better grades continued strong against HMS 1&2 (80:20) with some sellers noting a spread of $25/mt while others felt the spread between the grades was widening in deals. 
  • Sentiment over the market’s strength is diverging and some buyers opined that a Turkey import deal may be announced at lower prices on HMS 1&2 (80:20). Others acknowledge a strong US scrap pricing environment, with elevated imported scrap offers, in which they had to purchase and some importers, especially from India, noted a preference for scrap buys in the domestic market.  
  • Indian buyers are unsure whether finished steel prices may dampen on lower bids and weaker interest in the near term and are hesitant to commit to higher input prices. Sustainability and the overall steady sentiment are expected in the market given Chinese domestic activity, strong iron ore prices, and continued economic recovery globally.  
  • Pakistan buyers were fewer due to market uncertainty but those from Bangladesh were active on tight domestic supplies and improved demand for steel in its domestic market. 
  • Japanese ferrous export markets are reported as strong and unchanged, which supports the US-sourced ferrous deals.  
  • The weekly Davis Indexes in New York rose for #1 busheling by $7/mt, for machine turnings by $8/mt for shredded by $11/mt, and for both HMS 1&2 (80:20) and P&S 5ft by $10/mt. 
  • Several East Coast market participants noted the expectation that US domestic prices in the region and the overall US ferrous market is likely to gain by $20-30/gt in July ferrous trading compared to June settled prices. Some participants wondered whether the increase would be feasible given adequate feedstock flows into scrapyards but also noted the strong scrap demand given backlogged production schedules and higher finished steel prices.  
  • In Los Angeles, the index for #1 busheling rose by $9/mt while HMS 1&2 (80:20) increased by $7/mt. Shredded climbed by $9/mt and P&S 5ft rose by $10/mt fas. 
  • San Francisco’s indexes shifted upward with #1 busheling and P&S 5ft rising by $9/mt. HMS 1&2 (80:20) increased by $11/mt and shredded climbed by $5/mt. 
  • The Seattle region is contending with very tight container availability and high freight prices. The index for #1 busheling climbed by $5/mt, HMS 1&2 (80:20) increased by $15/mt, P&S 5ft and shredded rose by $12/mt and $9/mt, respectively.

 

Mexico

  • Mexican ferrous scrap prices rose by MXN318/mt on average amid strong demand for Mexican scrap from Southern USA.
  • Prices are expected to continue to climb for both obsolete and premium grades over the next few weeks owing to domestic demand as well as the need for scrap in the US.
  • The weekly Davis Index in Northern Mexico for #1HMS increased by MXN505/mt delivered Mexico consumer on Friday, P&S 5ft rose by MXN495/mt delivered and shredded climbed by MXN170/mt. Machine shop turnings increased by MXN75/mt and #1 busheling was up by MXN220/mt delivered on Friday.
  • In Central Mexico, the weekly Davis Index for #1HMS, P&S 5ft, shredded, machine shop turnings, and #1 busheling climbed by MXN150/mt delivered Mexico consumer, MXN550/mt, MXN400/mt delivered, MXN150/mt delivered, and MXN300/mt, respectively.
  • Bajio Mexico’s weekly index for #1HMS climbed by MXN217/mt delivered Mexico consumer, while P&S 5ft rose by MXN416/mt. Shredded, machine shop turnings, and #1 busheling increased by MXN242/mt delivered, MXN358/mt, and MXN383/mt, respectively. (MXN1=$0.049)

 

Japan  

  • EAF steelmaker Tokyo Steel has kept its scrap purchase prices unchanged since May 18. The mills, however, lifted its HRC by JPY5,000/mt and kept the rest of the finished steel prices unchanged for deliveries in July, the company stated on Tuesday. 
  • The weekly index for #2 HMS, Wednesday, increased by JPY500/mt fob and fas Japan. The weekly index for Japanese P&S 5ft (small bulk) dropped by $10/mt. 
  • The weekly index for Japanese #1 busheling jumped by JPY1,500/mt for fob and fas Japan. 
  • The weekly Davis Indexes for shredded Wednesday, climbed by JPY1,500/mt, and the index for HS increased by JPY2,250/mt fas Japan. 
  • The weekly index for the Japanese HMS 1&2 (50:50) went down by $2/mt cfr Haiphong. 
  • The weekly index for Japanese HMS 1&2 (50:50) cfr Taiwan, Wednesday, was flat. ($1 = JPY110.14)

 

South Korea  

  • The weekly Davis Index for domestic Heavy A rose by KRW10,000/mt ($8.94/mt) del Incheon and del Pohang. Scrap prices jumped due to tight supply. 
  • The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, went up by $3/mt cfr South Korea. There was an improvement in demand but trading was still slow.
  • The weekly Davis index for P&S 5ft, Wednesday, rose $5/mt cfr South Korea, while the index for #1 HMS and shredded climbed up by $3/mt and $6/mt cfr South Korea. 
  • Offers for #2 HMS increased by JPY1,500/mt fas from the prior week. 
  • Hyundai steel revised bids upwards for shredded, HS, and busheling up by JPY4000. ($1 = KRW1129.97)

 

Taiwan  

  • The weekly Davis Indexes for domestic HMS 1&2 (80:20) remained unchanged delivered Northern and Southern mill. 
  • The market was quiet after the Dragon Boat Festival on Monday. Feng Hsin kept domestic scrap purchase prices unchanged this week.
  • Prices are unlikely to rise for a while due to wet weather and weak billet demand in the region. 
  • The weekly Davis index for HMS 1&2 (50:50) cfr Taiwan remained flat. The weekly Davis Index for containerized #1 HMS and Shredded, P&S 5ft and #1 bushelling jumped by $1/mt each cfr Taiwan on Thursday. The weekly index for containerized US-origin HMS 1&2 (80:20) went down by $8/mt cfr Taiwan. ($1 = TWD27.76)

 

China

  • The weekly Davis Index for HMS (80:20) went up by CNY100/mt del mill on Tuesday. 
  • In China, domestic billet prices rose by CNY20/mt in a day to $4,960/mt ex Tangshan on Friday inclusive of VAT. Steel futures dropped on Friday reversing Thursday’s gain of CNY150/mt, amid price control measures by the government. Iron ore prices for ferrous content 62pc remained below $220.2/mt cfr North China on Friday. Asian billet and HRC export prices showed a downward correction of $10-15/mt in the week.
  • China began steel mill inspection to rein in emission-heavy part on June 15 and it will last till July. This could further tighten supply when the country is in the middle of curbing the accelerating commodity prices. ($1 = CNY6.44)

 

Vietnam 

  • The weekly Davis Index for HMS 1&2 (80:20) in Vietnam remained flat delivered Southern mill.
  • Vietnamese EAF makers have decided to stay away from ferrous scrap purchases on weak demand. Top HRC supplier, Formosa Ha Tinh Steel (FHS) has kept flat steel prices for the domestic August shipments unchanged from July. 
  • The weekly Davis index for containerized #1 HMS, Thursday, went up by $1/mt cfr Vietnam. From a week ago, shredded, P&S 5ft, and #1 bushelling indexes went up by $1/mt cfr Vietnam each. 
  • Offers for US-origin HMS 1&2 (80:20) went up by $2/mt cfr Vietnam though demand is still weak. The market has been silent for a while now. ($1=VND23,000)

 

Indonesia

  • The weekly Davis index for P&S 5ft went up by $10 cfr Indonesia port. 
  • The weekly Davis Index for shredded and #1 busheling settled up by $10/mt each cfr Indonesia port, respectively. Trades for HMS 1&2 (80:20) in containers were heard at $496/mt cfr Indonesia. ($1=IDR14,409.55) 

 

Thailand

  • The weekly Davis index for domestic HMS 1&2 (80:20) was flat del Rayong mill. Thai mills were largely silent this week. Scrap prices could decline in the coming days, believe traders. ($1=THB31.43)

 

Malaysia 

  • The weekly Davis Index for HMS 1&2 (80:20) settled flat del eastern mill and del western mill. 
  • Malaysia is under lockdown till June 28. ($1 = MYR4.14)

 

India 

  • Imported ferrous scrap offers in India were firm however, mills either lowered bids or remained silent seeking price drop in the coming days. Steel demand has turned bearish on the arrival of monsoon and softening global cues. 
  • The daily Davis Index for containerized shredded, Friday, rose by $0.3/mt cfr Nhava Sheva. Offers were firm above $530-535/mt cfr Nhava Sheva, yet bids were low. From the prior Friday, the index rose by $6.57/mt to reach the highest since 2008. 
  • Fresh offers for containerized scrap were very few as yards opted to fulfill bulk demand on low collection rates. Also, containers remained in a short supply. The Indian currency was at Rs74 against $1 from below Rs73 a week ago. 
  • The daily Davis Index for US-origin HMS 1&2 (80:20) remained flat on Friday cfr Nhava Sheva. From a week ago, the index rose by $10.25/mt from the prior Friday. 
  • The daily index for UAE-origin HMS 1&2 (80:20) dropped by $1/mt cfr Nhava Sheva while bids dropped by over $5/mt from prior Friday. The Davis indexes for P&S and #1 busheling cfr Nhava Sheva, both up by $7/mt from June 11. However, mills remained largely away from these grades and instead looked for lower-priced scrap. 
  • Turning scrap and West African HMS traded in thin volumes at prices lower by $10-15/mt from UAE HMS. Bearish domestic cues kept deals limited for imported ferrous scrap.

 

India domestic

  • Domestic ferrous scrap prices were under pressure in the North amid low demand from the finished steel makers. The index for HMS 1&2 (80:20) declined by Rs2,400/m ($32.46/mt)t del Mandi Gobindgarh from last week.
  • The index for the grade in Mumbai remained flat amid a shortage of local scrap. But lack of demand kept prices from rising. Sales for finished steel were low as monsoons have slowed construction activity.

 

Pakistan  

  • Pakistani ferrous scrap importers turned silent on Friday after some deals earlier this week. Steel demand was weak with the arrival of monsoon rains. The Pakistani currency remained depreciated above PKR157 against $1 from PKR156 a week ago. 
  • The daily Davis Index for containerized shredded, Friday, inched down by $2.14/mt cfr Port Qasim, but up by $6.25/mt from the prior Friday. 
  • Sellers from UAE kept offers for HMS scrap unchanged following firm cues from the US and the European markets where supply is still tight. But a decline in buying interest in India kept prices from rising. The Davis Index for UAE-origin HMS 1&2 (80:20), Friday, fell by $3/mt cfr Port Qasim. 
  • The daily index for US-origin HMS 1&2 (80:20), Friday, cfr Port Qasim, was unchanged. The index increased by $4.75/mt from the prior Friday on supply crunch and jump in offers from the US East Coast sellers. 
  • The daily Davis Indexes for P&S 5ft and #1 busheling declined by $2/mt but rose by $6/mt from the prior Friday. 
  • In the domestic market, steel trades remained slow as market participants are still waiting for clarity on the impact of budget FY2021-22 announced on June 11. The index for domestic Bala billet dropped by PKR1,000/mt ex-works Punjab.
  • After a price rise last week, buyers showed limited interest in rebar purchases as monsoons slowed construction activities. The weekly Davis Indexes for rebar settled flat ex-works Karachi and Punjab. 
  • A few yards were looking to sell off material before the financial year closes on June 30. 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, declined by PKR250/mt and PKR350/mt, respectively. ($1=PKR157.32)

 

Bangladesh

  • Bangladeshi mills booked limited volumes of containerized scrap. Elevated freight rates and a global shortage of containers may keep overall landed costs for ferrous scrap high. Steelmakers thus refused to offer discounts on steel sales.
  • Amid softening trend in the Turkish bulk prices, the daily Davis Index for containerized shredded dropped by $0.03/mt cfr Chattogram on Friday. But the index rose by $5.18/mt from last Friday. Late on Friday, some traders reduced offers by $2-3/mt as seasonal slowdown affected sentiment. 
  • Extended semiconductor chip shortage has forced automakers to halt production, keeping the supply of prime grades under pressure. The weekly indexes for P&S and #1 busheling cfr Chattogram, rose by $6/mt and $5/mt, respectively, despite low buying interest.
  • The daily Davis Index for HMS 1&2 (80:20) from Latin America, Friday, rose $2/mt. The index rose by $13/mt from the prior Friday. The index for US-origin material increased over $11/mt from the prior Friday. 
  • The weekly index for ship scrap equivalent to P&S rose ex-yards, by BDT1,750/mt. Several small-scale mills were busy closing their books as the fiscal year ends soon.
  • The weekly index for billet was down BDT250/mt ex-works. For shipbreakers, offers for scrapped vessels remained firm keeping plates’ offers unchanged.
  • Amid continuous rains, demand for steel in the construction sector was weak. The weekly index for rebar from large-scale mills dropped BDT500/mt ex-works. The weekly index for rebar by medium and small-scale steelmakers dropped by BDT250/mt. ($1=BDT84.7)

 

Metallics

 

US/CIS

  • The weekly Davis Index for basic pig iron (BPI) held unchanged in New Orleans port on Friday in a subdued but firm market and CIS BPI trended flat.
  • The gap between offers and what mills are willing to pay for pig iron is starting to widen. Recent BPI offers remain strong at $680-700/mt cfr Nola, with no new transactions at that level yet. CIS producers are keeping offers up as freight costs have risen by about $15-20/mt recently. US buyers are bidding $660/mt cfr Nola and under, but consumers are seemingly not pursuing material at present.
  • A new transaction was fixed in Italy, where around 5,000mt of Ukrainian pig iron changed hands at $670/mt cfr. As a result, the weekly Davis Index for CIS BPI in Italy climbed by $1/mt. A Russian exporter sold a small cargo to Western Europe at $680/mt fob Baltic Sea this week.
  • In Turkey, demand from mills was low, but a trader booked Ukrainian material at $665/mt cfr for distribution. Besides, a pig iron sale was heard from India to Turkey at $630/mt cfr, but the deal was not confirmed by the time of publication.
  • The Davis Index for nodular pig iron (NPI) imports was unchanged in Nola. The material remains in limited supply with offers involving future shipment only. The latest offers for NPI have firmly ranged between $750-780/mt cfr Nola with bids a touch below.
  • US hot briquetted iron (HBI) imports remain flat in Nola as offers or bids have not been heard for the grade. The material’s price level is based on the most recent offers together with a price evaluation with comparable grades.

 

India

  • In a week, the index for sponge iron declined by Rs200/mt del Mumbai mills and the index in Mandi Gobindgarh declined by Rs400/mt del mills as sponge manufacturers reduced their offers amid low sales.

 

India semi-finished and finished steel

  • The Davis Index for billet in Mumbai rose by Rs1,000/mt ($13/mt) ex-works from last week amid a rise in imported scrap prices. The index for rebar, however, dropped by Rs500/mt ($5/mt) ex-works weighed down by weak sales. 
  • In Raipur, the index for billet dipped Rs250/mt ($3/mt) ex-works from the previous Friday as re-rolling mills largely stayed away from purchases. The index for rebar was down by Rs300/mt ($4/mt) ex-works amid moderate demand.
  • In Mandi Gobindgarh, the index was up by Rs100/mt ($1/mt) ex-works from the previous Friday.
  • Some steel mills in Jalna sold billet to Ahmedabad in healthy quantity at Rs43,200/mt ($592/mt) ex-Jalna. Meanwhile, few mills in Bhavnagar (Gujarat) were active in the billet export market. 

 

Shipbreaking 

  • Re-rolling scrap price rose this week amid tight supply. But rolling mills purchased material only on a need basis as domestic steel demand is low. The Davis Index for 14Ani rose by Rs600/mt ($8.11/mt) ex-Alang on Friday from last week.
  • Ship arrivals are less in Alang, which has created a shortage of tonnage for demolition. The index for 2kg plates rose by Rs800/mt ex-Alang. 
  • The arrival of monsoons could keep demand for ferrous scrap limited, a seasonal phenomenon. The daily Davis Index for HMS attachments and Melting declined by Rs500/mt ex-Alang on Friday.

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