Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Menu

Ferrous market update: March 1-5

Ferrous Market Update 03/05/2021

 

Turkey/Bulk

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) slipped by $0.50/mt cfr on Friday on a new booking from the Baltic region.
  • An Iskenderun-based integrated steel mill purchased 28,000mt of HMS 1&2 (80:20) at $460/mt cfr and 7,000mt of bonus material at $470/mt cfr from a Latvian supplier on Mar 5.
  • US exporters are absent from the bulk market to Turkey as they wait for the US domestic markets to settle. Mills in the US kicked off March trade with increases of $50-70/gt in Detroit, while in other regions mills have attempted to secure lower increases.
  • With Turkish mills bidding for material in a $460-465/mt cfr range, suppliers have looked to other markets. A Venezuelan cargo was sold to Italy at $465/mt cfr for HMS 1&2 (80:20), which normalizes to around $470/mt cfr Turkey.
  • US West Coast and Australian bulk shippers have recorded strong sales to Vietnam, which booked three cargoes from the US and one from Australia at shredded scrap price levels of $465-477/mt cfr. The two most recent deals concluded this week, were booked at $474/mt and $477/mt cfr.
  • For shippers to Turkey, the short sea market has been active from the Azov-Black Sea basin. Romanian-origin HMS 1&2 (80:20) traded at $430-440/mt cfr during the week and Turkish mills booked more than 30,000mt in small vessels over the past week.
  • Daily rebar export prices fob Turkey were flat on Friday, while daily domestic spot rebar prices increased by TRY10-50/mt ($1-7/mt) ex-works, including 18pc VAT.
  • Icdas raised its local rebar prices by TRY20/mt ex-works Biga and Istanbul including 18pc VAT. ($1=TRY7.53) 

 

Turkey domestic

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey surged by TRY434/mt ($60/mt) on Monday on increases in imported scrap and Turkish rebar prices.
  • Purchase prices for shipbreaking scrap in the Izmir region rose by $35/mt over a week amid positive market sentiment. ($1=TRY7.26)

 

CIS

  • The weekly Davis Index for A3 scrap in Russia’s Baltic Sea region rose by $18/mt on Monday and by $24/mt in the Black Sea region on higher prices in new transactions.
  • Business activity revived significantly at the end of February after some Russian exporters chose to sell to Turkey, amid stronger demand and acceptable price levels. A supplier from St Petersburg closed a deal with a Turkish mill at $452.50/mt cfr for HMS 1&2 (80:20) and at $462.50/mt cfr for bonus material. A day earlier, a recycler from Kaliningrad agreed to ship the same material at around $450/mt cfr Turkey. 
  • Trading also resumed in Rostov-on-Don, where an exporter sold an A3 scrap cargo at $452/mt cfr Turkey.
  • Turkish importers are still actively looking for material because of which, Russian suppliers raised their targets to a minimum of $460/mt cfr for HMS 1&2 (80:20).
  • Collection prices for ferrous scrap increased in a firm export market. The weekly Davis Index for A3 scrap jumped by RUB2,325/mt ($31/mt) delivered St Petersburg dock and by RUB1,250/mt ($17/mt) delivered Rostov-on-Don dock. ($1 = RUB74.01) 

 

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region rose by €16/mt ($19/mt) on Tuesday amid an uptrend in the export market.
  • Exporters from the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) raised collection prices amid a positive market sentiment as Turkish importers accepted higher prices.
  • European exporters are targeting $450-455/mt cfr for HMS 1&2 (75:25) early this week as demand for the material persists in Turkey and many steelmakers require cargoes for April shipment. (€1 = $1.20)

 

UK dockside

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices increased by £10-13/mt ($14-18/mt) delivered dockside.
  • UK dockside ferrous scrap purchase prices rose after some bulk processors passed on a portion of relatively wider margins to merchant suppliers.
  • Most UK-based bulk exporters were heard to have raised dockside rates by £5-10/mt, while one large deepsea supplier was rumoured to have raised them by around £10-15/mt. A UK-based trader indicated that the large bulk processor had overpaid compared with the rest of the market as they were likely trying to secure volumes from a certain supplier.
  • The weekly indices for north and south UK OA (Plate & Structural) increased by £10-13/mt delivered dockside, respectively, during the week while north and south UK 5A/5C (frag feed) ferrous scrap indices climbed by £10/mt, over the same period. (£1 = $1.39)

 

Spain 

  • Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices jumped by €20/mt cfr ($24/mt) over the past week.
  • Ancillary markets have continued to play catch up though the pace of growth in Turkish ferrous scrap import prices has slowed over the past week. 
  • Turkish HMS 1&2 (80:20) import prices climbed by $11/mt cfr Turkey on Mar 4. However, peripheral shortsea small bulk ferrous scrap markets, such as Spain, have seen increases of €20/mt over the same period. 
  • A UK-based trader noted that freight rates to Spain have increased to over €30/mt, making cargoes significantly more expensive for Iberian buyers.
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices increased by €19/mt fob, during the week. (€1 = $1.19)

 

US domestic

  • The US domestic ferrous scrap trade for March proceeded quickly after Thursday afternoon’s Midwest mill announcements of price increases of $50-70/gt. 
  • Cut and shredded grades were announced at buying prices up $50/gt against February settled prices while prime received a heftier increase of $70/gt buying offers against February prices. 
  • Market participants on the buy and sell sides report that mill programs filled quickly, especially for local tonnage. They cited consensus was generally easily reached on price moves. The established trend was observed in several regions including Chicago, Detroit, Ohio Valley, and in the East and Southeast.
  • Although some pockets had higher consumer demand for prime grades such as #1 busheling, prices transacted above $70/gt for material purchased along the river into Chicago area mills as well as Detroit. 
  • A Detroit area mill was aggressively looking to purchase secondary materials and market participants noted remote, rail P&S 5ft from an outside region to a Detroit consumer was priced at a premium of $20-25/gt over prior local deals.
  • The #1 busheling grade is in strong demand and the material traded with large ranges as some mills were forced to compete for it to meet program requirements. In Detroit, #1 busheling transacted as high as $595/gt on Friday after some moved as low as $545/gt in early trading.
  • In Philadelphia, a few grades traded softer while shredded moved more than the increased $50/gt trend. The monthly Davis Index for #1 busheling rose by $59/gt delivered. Mills in the Philadelphia region offered #1 busheling at $475-500/gt on Thursday but adjusted it to $510/gt on Friday as the material was difficult to secure at the lower value.
  • The Davis Index increased by $45/gt delivered Philadelphia for #1 HMS, P&S 5ft rose by $55/gt delivered, Machine shop turnings increased by $36/gt and shredded moved up by $68/gt delivered Philadelphia consumer.
  • Mill interest differed depending on immediate needs. Some reduced their buying volumes slightly hoping for lower scrap prices in April while others increased them. February contracted scrap is still being delivered in early March, making some mills comfortable with their monthly inventory forecast. 
  • Markets in the Carolinas met the same fate as the Midwest. Some shredded and P&S 5ft deals were reported receiving premium pricing but on limited occasions. The index for #1 busheling increased by $69/gt delivered while #1HMS rose by $50/gt. P&S 5ft, shredded, and machine shop turnings climbed by $53/gt, $48/gt, and $51/gt delivered, respectively.
  • Some regions are still negotiating and will settle on Monday. However, the overall trend of price increases ranging from $50-70/gt persists throughout most US markets, except Texas where mills and scrap yards were affected by harsh winter storms. The region is expected to have limited increases of $20-35/gt on secondary grades. 
  • In the Pacific Northwest, scrap prices increased by $30/gt on #1HMS and by $40/g on P&S 5ft and shredded grades, against February settled prices.

 

US dockside

  • US East Coast and Houston dock collection prices for ferrous scrap increased by about $10-15/gt during the week on rising export and domestic prices. 
  • East Coast dock prices have been mixed with wide ranges over the past two weeks. Dockside #1 HMS sales were transacting between $330-380/gt at various East Coast export yards on Tuesday. Houston dock prices are also increasing, though with a lag due to the recent weather chaos.
  • Upcoming export activity and domestic price increases will determine the extent of price growth at East Coast and Houston docks in the near term. Some sellers held material back when bulk exporters decreased prices in February while others faced transportation issues, leading to tightened supply in the Northeast. 
  • Exports paused early this week as sellers hesitated in anticipation of rising prices. 
  • Shredder feed continues to be cited as most limited in supply and has shown the largest price growth throughout February. The grade ranges from $235-280/gt delivered East Coast dock after the material sold at close to $210/gt on Feb 2.
  • In Boston, the weekly Davis Index moved up for export yard #1 HMS, P&S 5ft, and shredder feed by $9/gt, $10/gt, and $6/gt delivered Boston export yard, respectively. 
  • The weekly Davis Index for export yard buying prices in New York increased by $15/gt for #1 HMS, by $14/gt delivered for P&S 5ft, and by $15/gt delivered for shredder feed. 
  • In Philadelphia, the Davis Index increased for #1 HMS, P&S 5ft, and shredder feed by $15/gt delivered, $16/gt delivered, and $14/gt delivered, respectively. 
  • In Houston, the weekly Davis Index increased by $11/gt for #1 HMS, by $13/gt for P&S 5ft, and by $8/gt delivered for shredder feed.
  • US West Coast weekly export yard ferrous scrap prices rose as docks increased offers and deal levels to attract inventories. Export demand and prices firmed up before the US domestic market trade. 
  • With rising rebar prices, Turkey is expected to increase bids for imported scrap for April shipments. Dock prices in the EU and UK have also increased by $14-19/mt over the past week due to the export market uptrend. Collection prices increased for docks in early March also on strong local competing demand. 
  • Mills throughout Asia are encountering improved billet and rebar demand as construction projects began to take shipments for spring. The trend is expected to support raw material prices. South Korea, Vietnam, and China are facing higher domestic scrap prices.
  • In Japan, Tokyo Steel increased its domestic scrap bid prices, placing further pressure in the domestic scrap market and supporting export scrap offers that may rise further in March. With negotiations for imported bulk scrap heard in Australia, Japan, Russia, and the US, scrap dealers are beginning to firm up offers by $20-30/mt compared to a week ago. 
  • The weekly Portland Davis Indexes increased for #1 HMS, P&S 5ft and shredder feed by $10/gt delivered, $12/gt, and $9/gt delivered, respectively. 
  • Offers from regional docks increased over the week on higher export demand and rising bulk prices. Some scrap yards continued receiving January prices while others began to capture improved offers after the dip in dock prices in early February. 
  • In San Francisco, the weekly indexes increased by $10/gt delivered for #1 HMS, by $13/gt for P&S 5ft, and by $12/gt delivered for shredder feed. 
  • The weekly Los Angeles Davis Indexes rose for #1 HMS by $19/gt delivered, for P&S 5ft by $23/gt delivered, and for shredder feed by $16/gt delivered. 
  • Market participants were anticipating the increase over the week with some considering the potential for an additional $10-20/gt before the month is over given strong export demand and regional options via rail toward mills inland and Mexico. 

 

US containers

  • US containerized ferrous scrap prices decelerated after climbing for three successive weeks amid slower container price growth. Export prices in the bulk market, however, continued to rise.  
  • Market participants report increasing inquiries but difficulty in obtaining container bookings, which were adequate for Taiwan but more difficult to Southeast Asia.  
  • Scrap inventories along the West Coast have also increased over the past two weeks.  
  • Bangladesh has returned to the market but a slowdown of demand on high grades was encountered over the week as premiums were too high for exporters.  
  • Global scrap price increases and firm offers from US exporters are being supported by strong export prices from Japan, Russia, Australia, Central America, and the UAE. Tokyo Steel increased domestic scrap prices in Japan, which will further support Japanese export scrap prices and competing US scrap offers to Asia.  
  • Larger mills in Asia recently booked bulk scrap or have inquired about bulk transactions. Deals are expected to trickle in due to strong scrap demand and prices in the domestic market as well as the shortage of containers. 
  • Chinese activity is supporting regional demand in Asia. The probability of unlikely export dumping activity from China that would limit prices and import demand by Chinese buyers is encouraging domestic mills in the region. 
  • Strong economic renewal from COVID-19 stimulus packages may also support domestic demand in China and other scrap importing countries such as Taiwan, South Korea, and Vietnam. 
  • The weekly Davis Indexes for containerized scrap in New York increased for HMS 1&2 (80:20) and shredded by $3/mt fas while #1 busheling climbed by $6/mt and P&S 5ft rose by $2/mt fas. The index for machine turnings increased by $6/mt after a rise of $29/mt in the prior week.      
  • In Los Angeles, the weekly Davis Indexes rose by $4-18/mt. The index for #1 busheling jumped by $18/mt on strong competing domestic demand. Market participants report limited to no sales to the export market but are shipping most inventories to US-based mills via rail. The indexes for HMS 1&2 (80:20), P&S 5ft and shredded all increased by $4/mt. 
  • Dealers that were seeking transactions at $400-405/mt fas range on HMS (1&2) 80:20 for the range reported a push back by buyers and the inability to finalize on booking containers satisfactorily with other buyers, especially, those to Southeast Asia.  
  • The San Francisco weekly indexes increased by $22/mt for #1 busheling. HMS 1&2 (80:20) climbed by $5/mt, P&S 5ft rose by $3/mt, and shredded climbed by $2/mt fas. 
  • The Davis Indexes in Seattle increased by $20/mt for #1 busheling while HMS 1&2 (80:20) rose by $3/mt, and P&S 5ft and shredded both climbed by $10/mt fas.

 

Mexico

  • Mexico’s domestic ferrous scrap prices increased in the North and Bajío regions, in tandem with the US domestic ferrous scrap market’s price increases this week. Scrap prices in the Central region remained unchanged.
  • Prices for prime grades such as #1 busheling increased by $70/gt while cut grades such as #1 HMS rose by $50/gt from February settled prices in the US this week. 
  • Supply of materials such as #1 busheling is expected to tighten following the production cuts by automakers such as Chrysler and GM in Mexico due to the semiconductor chip shortage. Market participants believe that the limited supply could send #1 busheling prices soaring to MXN12,142-12,782/mt ($570-600/mt).
  • In North Mexico, the weekly Davis Index for #1 HMS, P&S 5ft, shredded, and machine shop turnings rose by MXN266/mt delivered Mexico consumer.
  • The weekly Davis Indexes in Bajío for #1 HMS, P&S 5ft, shredded, and machine shop turnings all rose by MXN266/mt delivered.
  • In Central Mexico, the weekly Davis Indexes for all grades remained unchanged. ($1=MXN21.30)

 

Japan  

  • Tokyo Steel raised domestic scrap bids by JPY1,000/mt ($9.3/mt) at Tahara and Utsunomiya, and by JPY500/mt at the other three plants. This is its second rise in March. 
  • A shortage of domestic scrap in Japan and a rise in global scrap prices prompted exporters to raise offers this week by JPY1,000-1,500/mt ($9-14/mt). Export deals were limited as bids lagged.
  • Traders raised offers for HS by $20-30/mt cfr China. Spot iron ore price for 62fe fell by $2/mt from the prior week cfr Qingdao on Monday due to pollution-related production restrictions but rose by $1.5/mt on Wednesday.
  • The index for P&S 5ft (small bulk) China port settled up by $20/mt from the prior week on Wednesday. 
  • Exporters raised offers for #2 HMS by JPY1,000/mt from the week prior with the index rising by JPY1,750/mt fas. The index rose by JPY1,250/mt fob.
  • Bids for Japanese #1 busheling (Shindachi) rose by JPY2,000/mt fob from a week ago. The weekly index for the grade rose by JPY1,563/mt fob Japan, while increased by JPY1,500/mt fas. Many traders expect a further rise in global ferrous scrap prices next week due to tight supply and a rise in steel demand globally.
  • The weekly Davis Index for HS and shredded, Wednesday, rose by JPY1,000/mt fas, respectively. 
  • Offers for HMS 1&2 (50:50) rose by $20/mt cfr Vietnam this week. After Tokyo steel increased domestic scrap bids, the index for the grade rose by $19/mt cfr Haiphong.
  • In Taiwan, the index for Japanese HMS 1&2 (50:50) rose by $22/mt cfr. Offers rose $25/mt cfr. 
  • Buyers from Vietnam, South Korea, and Taiwan are buying cautiously amid elevated offer levels and closely watching Chinese and Turkish buying to gauge the price direction. ($1=JPY107)

 

South Korea  

  • Containerized imported ferrous scrap prices increased this week amid rising offers, short supply of scrap and unavailability of empty containers in most exporting countries. Mills stayed away from containerized purchases and preferred negotiating for bulks from Japan and the US.
  • A few buyers raised bids to secure material in anticipation of a further rise next week but offers rose further leading to no deals. Many steel mills in East Asia have resumed buying post annual maintenance but are cautious of rising offers. 
  • South Korean mill Hyundai raised its bid for Japanese scrap by JPY3,000-4,000/mt($28-37/mt) from the last bids on Feb 18. 
  • The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, rose by $14/mt from the prior week cfr South Korea. Bids rose by $15-20/mt cfr. 
  • The weekly Davis Indexes for P&S 5ft and #1 HMS, Wednesday, rose by $20/mt and $12/mt cfr South Korea, respectively. The index for shredded rose by $18/mt from the prior week. Offers for Russian A3 scrap rose by $5-10/mt from the prior week.
  • The Davis Index for domestic Heavy A rose by KRW13,750/mt ($12/mt) and KRW20,000/mt delivered Incheon and Pohang, respectively. Mills have raised bids for domestic scrap as yards refused to sell at lower prices on firm global ferrous scrap demand, said traders. 
  • South Korean domestic scrap prices trended up this week. Few mills raised bids for domestic scrap by KRW15,000-20,000/mt on Monday. 
  • The weekly Davis Index for domestic Light A rose by KRW20,000/mt delivered Pohang mill. Due to the limited supply of domestic scrap, many Korean mills are negotiating for Japanese scrap in anticipation of a further rise after Tokyo steel raised bids on Tuesday. ($1=KRW1,124.8)

 

Taiwan  

  • The Davis Index for containerized US-origin HMS 1&2 (80:20) was unchanged from a day ago but rose by $7/mt cfr from a week ago as US exporters raised offers in anticipation of a rise in finished steel demand and firm Turkish buying. 
  • Offers for Japanese HMS 1&2 (50:50) rose by $25/mt from the prior week on rising domestic scrap prices in Japan and higher bids by South Korean mills. Hyundai raised bids by JPY3,000-4,000/mt fob on Thursday from prior bids. 
  • The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling rose by $10/mt, $2/mt, $7/mt, and $6/mt cfr, respectively. Mills have turned cautious amid a rise in offers for Japanese and US ferrous scrap. Mills preferred shorter transit scrap, especially from Hong Kong.
  • The weekly Davis Indexes for domestic HMS 1&2 (80:20) rose this week by TWD500/mt delivered South Taiwan and North Taiwan mills, respectively. Rising international scrap prices and low inventory have prompted most mills to start negotiation for domestic and imported scrap post a long weekend. Feng Hsin raised domestic rebar and scrap prices by TWD400/mt and TWD500/mt, respectively this week.
  • On Tuesday, limited offers for HMS 1&2 (70:30) from Central America in FEUs heard at prices up by $5/mt cfr from the prior week. ($1=TWD27.9)

 

China

  • In China, Shagang Steel raised ferrous scrap purchase prices this week amid strong domestic and international demand. 
  • The weekly Davis Index for HMS 1&2 (80:20) settled up by CNY100/mt ($15.5/mt) delivered mill. Steel prices are expected to be under pressure due to rising restrictions and harsh weather.
  • China will speed up recycling and utilisation of renewable resources such as metals scrap to meet its carbon neutrality goal as per a State Council’s release on Monday, which is expected to boost scrap demand. Many traders indicated that due to pollution-related production restrictions, many steel mills would increase imports of billets and scrap to fulfill domestic and international demand.
  • Japanese HS scrap offers rose by $30/mt cfr China. 
  • In China, the optimism over economic growth faded with the parliamentary session setting the GDP growth target at 6pc, far below earlier forecasts. The debt ratio remained high and forced the government to cut stimulus. Thus, steel futures fell by 4-5pc in a day. There is also the possibility of the government decreasing the export tax rebate next week. ($1=CNY6.5)

 

Vietnam 

  • Vietnamese mills preferred to buy bulk scrap due to a short supply of empty containers.
  • Offers for bulk cargoes of HMS 1&2 (80:20) from the US West Coast rose by $20/mt from a week ago, while that for HMS 1&2 (50:50) rose by $25-30/mt from the prior week. Offers for Japanese #2 HMS Tuesday rose by $30/mt cfr from the prior week.
  • In the containers market, the weekly index for US-origin HMS 1&2 (80:20), Thursday, settled flat cfr Vietnam. There was a gap of around $5-10/mt between bids and offers. 
  • The weekly index for P&S 5ft and shredded rose by $11/mt and $6/mt cfr, respectively, on Thursday, amid rising offers. 
  • The weekly Davis Index for HMS 1&2 (80:20) rose by VND200,000/mt ($8.7/mt) this week delivered South Vietnam inclusive of taxes. With a rise in finished steel demand from the auto and infrastructural sectors, demand for raw material rose this week.
  • Low domestic scrap availability and anticipation of a further rise in prices prompted inquiries. Vietnamese mills were cautiously watching Turkish buying prices and Chinese bids for Japanese scrap. ($1=VND23,076)

 

Indonesia

  • Indonesian mills were cautious of new bookings as many yards are still processing export registration. Rise in freight rates and limited scrap offers from the US have made imports unviable.
  • The weekly Davis Index for HMS 1&2 (80:20) rose by $10/mt cfr Jakarta from the week prior. 
  • The indexes for P&S 5ft and shredded rose by $15/mt and $16 cfr Jakarta, respectively. Most mills are preferring ferrous scrap from Malaysia and Hong Kong.
  • The weekly Davis Index for #1 busheling rose by $21/mt cfr.

 

Thailand

  • The weekly Davis Index for domestic HMS 1&2 (80:20) rose by THB1,100/mt($36/mt) delivered Rayong mill inclusive of taxes, amid limited deals. Mills raised bids after two weeks in anticipation of a further rise in global scrap prices and shortage of domestic and imported scrap. Steel mills are expected to restock scrap inventory this week and are cautiously tracking Turkish and Asian buyers’ purchase prices.
  • Container shortage and vessel delays made steel mills opt for short transit imports. 
  • Billet trades rose by $15-20/mt cfr Southeast Asia. ($1=THB30)

 

Malaysia 

  • The weekly indexes for HMS 1&2 (80:20) rose by MYR50/mt($12/mt) delivered western mills and eastern mills inclusive of taxes, respectively.
  • Malaysian steelmakers are cautious amid an extension of lockdown in Malaysia and rising global scrap prices. Trades slowed with offers for US-origin HMS 1&2 (80:20) in FEUs increased by $5-10/mt from the prior week. As expected by traders, domestic scrap prices rose this week due to domestic scrap shortage and firm global scrap prices. Steel mills preferred domestic scrap as it remained cheaper than imported. ($1=MYR4)

 

India 

  • Indian mills bought containers of imported HMS scrap only to meet their minimum requirements. Price levels for other grades remain unviable for most Indian buyers.
  • A few insiders expect prices to fall in April amid a lull in the market due to Ramadan.
  • The daily Davis Index for containerized shredded cfr Nhava Sheva, down $2.5/mt from a day prior. Mills opted for domestic scrap over imported. But trades are expected to pick up next week amid tightening domestic scrap availability. 
  • Offers for Dubai-origin HMS #1 and P&S were unchanged at cfr Nhava Sheva, despite bids lower by $10-15/mt, amid stable demand. 
  • The daily index for US-origin HMS 1&2 (80:20), Friday was unchanged cfr Nhava Sheva. 
  • Indian primary steelmakers sold a substantial volume of billets in the export market at $545-550/mt fob. Some induction furnace makers were also able to sell billets at $578-583/mt fob India. ($1=Rs72.47)

 

India domestic

  • Domestic ferrous scrap prices in India remained firm on global cues and domestic supply shortage.
  • In Mumbai, the index for HMS 1&2 (80:20) rose by Rs850/mt delivered mill from last Friday, while in Mandi Gobindgarh, it rose by Rs300/mt delivered mill in a week. 
  • Many suppliers refused to reduce prices for ferrous scrap and watching imported scrap prices and Turkish purchases for price direction. Mills who are preferred domestic scrap as imported scrap prices are still unworkable. Most steelmakers hope for a rise in demand for finish steel as infrastructure projects pick up the pace.

 

Pakistan  

  • Pakistani ferrous scrap importers stayed away from purchases amid firm asking prices. A few buyers managed to book limited volumes at lower prices.
  • In the last couple of days, domestic billet and scrap prices have dropped over PKR2,000/mt, but rebar offers remain bullish. 
  • Re-rollers and shipbreakers at Gadani were upbeat as they were able to sell commercial rebar at competitive prices, while large makers have failed to attract buyers after raising offers. 
  • Amid limited demand, the Davis Index for containerized shredded, Friday cfr Port Qasim, fell by $3.43/mt from Thursday. 
  • The index for US-origin HMS 1&2 (80:20), was up by $1.25/mt from a day ago. 
  • The daily Davis Index for UAE-origin HMS 1&2 (80:20) cfr Port Qasim, was up by $2/mt. Furnaces and rollers opted for Dubai-origin HMS 1&2 (80:20) as they found shredded offers unviable to maintain profits. 
  • The weekly Davis Indexes for P&S 5ft and #1 busheling settled cfr Port Qasim, both down by $7/mt. 
  • On Friday, Bala traded at PKR105,500-106,000/mt ex-works down from PKR108,000/mt. But from last week, the index for domestic Bala billet rose by PKR2,000/mt ex-works.
  • The weekly Davis Index for rebar rose by PKR2,250/mt ex-works Karachi, while in Punjab, the index increased by PKR2,750/mt ex-works. 
  • On short supply, the weekly index for Art Pure Q toke scrap equivalent to a mix of HMS and P&S, Friday, settled higher by PKR2,750/mt ($18/mt) ex-yard Lahore. ($1=PKR157.07)

 

Bangladesh

  • Steel mills in Chattogram purchased scrap only to maintain inventories for the next two months. Most medium and small-scale furnaces have stepped away from the market to avoid losses. 
  • The daily Davis Index for containerized shredded, Friday, cfr Chattogram, was down by $2.5/mt. The market was silent as buyers were cautious of high offers on elevated freight rates. 
  • Japanese scrap export prices remained high on active seaborne demand. This pushed Bangladeshi mills to turn back to the US and European bulk suppliers. 
  • The index for HMS 1&2 (80:20) from Latin America on Friday settled down by $1/mt. Traders focused on domestic sales where prices were better. 
  • Trades for containerized P&S and #1 Busheling increased this week. The index for P&S settled down by $7/mt while that for #1 busheling was down by $17/mt on Friday. 
  • Amid short supply, the weekly index for ship scrap equivalent to P&S rose by BDT2,455/mt ex-works. The index for domestic HMS 1&2 (80:20) rose by BDT1,750/mt. Buyers opted for ship scrap due to faster delivery time. Supply from shipbreaking activities is expected to increase with most yards ramping up demolition.
  • Domestic billet ex-works Chattogram, index up by $1,250/mt from a week prior. The index for rebar from medium-scale mills in Dhaka rose BDT750/mt ex-works. Rebar traded in small volumes in Dhaka. ($1=BDT84.72)

 

Metallics

 

CIS 

  • The weekly Davis Index for CIS basic pig iron increased by $20/mt in the Black Sea basin amid active trading.
  • Pig iron demand remained strong in the US, driving global prices higher. A supplier from Russia sold 50,000mt of the material at $570/mt cfr New Orleans. The cargo is due to be shipped from the Baltic Sea in May. Last week, another Russian exporter closed a deal at $550/mt cfr.
  • New pig iron transactions were also fixed in Turkey this week. A supplier from Ukraine sold 5,000mt of the material at $565/mt cfr while another Ukrainian exporter traded similar tonnages at $573/mt cfr. Prices rose by $5-13/mt over a week.
  • The weekly Davis Index for CIS pig iron cfr Italy increased by $15/mt amid higher offers and price increases in deals at alternative outlets. However, negotiations were sporadic and did not result in transactions. CIS suppliers raised offers to $570/mt cfr, while Italian buyers were inactive.
  • A Russian pig iron exporter sold small cargoes to Western Europe, South Korea, and Saudi Arabia at $570/mt fob various ports this week. Total tonnages were around 20,000mt. 

 

US

  • The weekly Davis Index for basic pig iron (BPI) increased by $19/mt cfr New Orleans port on several new transactions at rising prices, marking the third successive week of increase.
  • The latest deals include a couple of bookings from the CIS at $570/mt cfr Nola, which concluded most recently and is set for May shipment from the Baltic Sea. Earlier in the week, a few BPI cargos from South Brazil were booked for high-phosphorus discounted material priced at $520/mt fob or around $560/mt cfr Nola. 
  • Prices for scrap alternatives are projected to continue rising as domestic scrap pricing for March is trending at $50/gt increases for secondary grades. Pig iron, which generally carries a premium of $20/mt or sometimes much more compared to prime grades, is currently priced in the same range as the grade.
  • The Davis Index for nodular pig iron (NPI) imports increased by $17/mt cfr Nola. New activity has not been reported for this grade, but the latest offers and bids heard for NPI fall between $600-620/mt cfr Nola.
  • The weekly Davis Index for US hot briquetted iron (HBI) imports increased by $27/mt cfr Nola. Offers or bids have not been heard recently however the material’s price estimate has been adjusted based on price movements for similar grades along with the latest consumer interest levels.

 

India

  • In a week, the indexes for Sponge iron rose by Rs750/mt del Mumbai and Rs500/mt del Mandi mill. Prices rose fuelled by a rise in iron ore prices. The spot prices for iron ore remained firm at $178.8/mt cfr China on Thursday, up by $2.8/mt from a week ago.

 

India semi-finished and finished steel

  • The index for billet in Mumbai increased by Rs900/mt ($12/mt) ex-works on Friday from a week ago supported by a rise in imported scrap prices. The index for rebar increased by Rs1,400/mt ex-works on healthy demand.
  • In Raipur, the index for billet was up by Rs700/mt ($10/mt) ex-works from the previous Friday, with a rise in rebar prices by an equal amount. 
  • In Mandi Gobindgarh, the index for ingot increased by Rs300/mt ($4/mt) ex-works from the previous Friday.
  • The bi-weekly indexes for billet surge by Rs1,000/mt ($14/mt) ex-works Jalna and by Rs1,400/mt ($19/mt) ex-works Kutch from the previous week. ($1=Rs74.09) 

 

Shipbreaking 

  • Shipbreaking prices rose on Friday after a brief uptick in demand from the rolling mills in Mandi Gobindgarh in the latter part of Thursday.
  • The daily Davis Index for 6Ani settled flat on Friday, compared to the prior week with a few deals reported at the current levels.
  • The daily Davis Index for 0.5kg and 1kg plates rose by Rs250/mt from a week ago.
  • The Davis Index for HMS attachments and Melting rose by Rs250/mt ex Alang. Recyclers believe there is uncertainty over prices.

 

Leave a Reply

Your email address will not be published.