Ferrous market update: March 15-19

Ferrous Market Update 03/15/2021

Turkey/Bulk

The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) declined by $2.33/mt on Friday amid a sustained standoff between buyers and sellers.
Trading remained slow in the Turkish imported ferrous scrap market. Mills have focused most of their attention on securing short-sea cargoes this week and the most recent concluded out of Ukraine at $395/mt cfr Turkey for a small volume of HMS 1&2 (90:10).
Mills have switched to purchases from the Azov-Black Sea basin to delay deep-sea cargo bookings. Seller sentiment is on the rebound with rumors of bulk sales to Europe at over $440/mt cfr and supplier hopes that the Turkish market could soon rebound to over $450/mt cfr.
Still, current offers appear to be at around $425/mt cfr for HMS 1&2 (80:20) from the Baltic region. Several deep-sea suppliers have withdrawn offers to Turkey, anticipating a price rebound as early as next week.
In Asian bulk markets, two cargoes comprising a total of 75,000mt sold from the US West Coast to South Korea at an #1 HMS price level of $431-432/mt cfr. The sale prices suggest an $8/mt increase in daily fob price levels.
In Turkey’s domestic market, mills lowered purchase prices for shipbreaking scrap by $5/mt to $410/mt delivered.
Daily domestic spot rebar prices in Turkey decreased by TRY30-40/mt ($4-5.50/mt) on Friday amid currency fluctuations.
Local rebar sales picked up on Friday and an Izmir-based mill sold around 30,000mt at prevailing price levels. ($1=TRY7.23)

Turkey domestic

The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey fell by TRY161/mt ($21/mt) on Monday amid lower prices for imported material.
Purchase prices for shipbreaking scrap in the Izmir region fell by $25/mt over a week in a sluggish market. ($1=TRY7.54)

CIS

The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap in Russia’s Baltic Sea region decreased by $18/mt on Monday and by $24/mt in the Black Sea after importers insisted on lower prices amid abundant supply.
Trading was subdued as most exporters preferred stepping back instead of accepting prices below $445/mt cfr Turkey for HMS 1&2 (80:20), though a supplier from St Petersburg sold this material at $437/mt cfr and bonus material at $447/mt cfr to a Marmara-based mill last week.
Suppliers from Rostov-on-Don also decided to withdraw offers to Turkey after bids fell to $420/mt cfr for A3 scrap.
Russian dock collection prices diverged with the weekly Davis Index for A3 material dropping by RUB600/mt ($8/mt) in St Petersburg dock on Monday and rising by RUB100/mt ($1/mt) in Rostov-on-Don dock. ($1 = RUB73.10)

Europe

The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region fell by €16/mt ($19/mt) on Tuesday in a muted market.
Some Dutch and Belgian ferrous scrap exporters decreased dockside prices, while others decided to suspend collection due to unclear sales prospects. The price gap between buyers and sellers remains wide with Turkish mills bidding no higher than $410/mt cfr for HMS 1&2 (75:25), referring to oversupply, while most European recyclers estimate $425/mt cfr to be fair, considering current collection prices.
Several European cargoes are available for export to Turkey, but suppliers are considering redirecting these volumes to the local market, where demand and prices are better. (€1 = $1.19)

UK dockside

Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices dropped by £10/mt ($14/mt), delivered dockside, respectively, on Tuesday.
UK-based bulk ferrous scrap processors pulled purchase prices back by £5-10/mt, depending on grade and location, to preserve margins in response to weaker export benchmarks.
The weekly indices for north and south UK OA (Plate & Structural) similarly declined by £10/mt delivered dockside, respectively, during the week.
Davis’ weekly north and south UK 5A/5C (frag feed) ferrous scrap indices dropped by a more modest £5/mt delivered.
UK merchants and bulk exporters agreed that dockside prices would move another £5-10/mt lower in the near term to realign with export benchmarks. (£1 = $1.39)

Spain

Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices declined by €10/mt ($12/mt) cfr, respectively on Friday.
Spanish ferrous scrap buyers dropped bids for small bulk cargoes at a faster pace compared with the UK and northern European suppliers over the past week.
Some Spanish-based buyers cut their bids by €15/mt to account for extremely high freight rates for small bulk coasters at €30-40/mt. UK and North European suppliers were unwilling to accommodate as they have been able to achieve better rates in neighboring markets, only dropping offers by €5/mt.
Shortsea small bulk coaster freight rates of €30-40/mt continue to be a bane for Spanish buyers, as it prices them out of the market.
Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices decreased by €15-20/mt fob during the week. (€1=$1.19)

Spain domestic

Davis Index’s monthly Spanish consumer ferrous scrap indices recovered by €50-55/mt ($60-66/mt), depending on grade and location, following the conclusion of mill-yard negotiations in mid-March.
Benchmarks on major seaborne trade routes, particularly to Turkey, have been the de facto price-makers for all ancillary and neighboring markets, including Spain, given that it purchases the bulk of European export volumes. This has become even more prevalent now that a group of recyclers in northern Spain has banded together to build deepsea cargoes to export to Turkey, despite Spain having a net deficit in its ferrous scrap requirements.
Domestic benchmarks have largely tracked the high degree of correlation in both the Spanish and Turkish import prices over the past month given that local mills must compete with deepsea markets to secure sufficient volumes for their melting requirements.
The indices for E1 (old thin), E3 (old thick), and E40 (shredded) jumped €50-55/mt delivered to mill, respectively. (€1 = $1.19)

Germany domestic

Davis Index’s monthly German ferrous consumer scrap indices increased on average by €35/mt ($42/mt), depending on grade and location, following the conclusion of mill-yard negotiations in March.
German buyers opened March negotiations at up to €35-40/mt higher compared with February’s levels in a concerted effort to prevent material flowing to export yards in Hamburg heading onwards to Turkey.
Domestic ferrous scrap prices were also partially supported by inclement weather in northern Europe during February, with heavy snow negatively affecting logistics, trucking routes, and, ultimately, collection rates.
As the month bore on, ferrous scrap benchmarks on major seaborne trade routes, particularly to Turkey, witnessed sharp declines, encouraging some dynamic German steel producers to pull back their bids by €10/mt to €25-30/mt up on last month.
North German ferrous scrap indices increased by €20-41/mt delivered over the past month, while East German ferrous scrap indices rose €34-37/mt. South German ferrous scrap indices climbed by €21-33/mt and West German ferrous scrap indices increased by €3-40/mt on a delivered to mill basis. (€1 = $1.19)

US dockside

US East Coast and Houston ferrous scrap dock collection prices declined on Tuesday amid waning export activity and falling prices.
East Coast weekly dock sales for #1 HMS were down $10-15/gt, transacting between $335-350/gt delivered, with the most aggressive offers for remote material priced near $360/gt at various export yards on Tuesday. The highest price accepted for this grade on Mar 9 was $380/gt.
In Houston, dock prices declined by $20-30/gt this week in line with global price drops and softening exports, though sources perceive this as a short-term trend. Prices still lingering for East Coast dockside transactions are likely to trend closer to $345/gt for #1 HMS by the end of this week, from New York to Philadelphia.
Shredder feed prices are the firmest, though ranging from $250-285/gt, with smaller declines so far in relation to other grades. Feed holds higher demand in tandem with zorba pricing, which remains strong.
Exports have slowed as destination mills are mentioning oversupply. US HMS 1&2 (80:20) exports to Turkey fell by $25.58/mt in one week to $430.83/mt cfr Tuesday compared to $456.41/mt cfr on Mar 9. Ample material has led buyers to lower bids up to $10/mt more for new US cargos.
In Boston, the weekly Davis Index moved down for export yard #1 HMS, P&S 5ft, and shredder feed by $8/gt, $9/gt, and $5/gt delivered Boston export yard.
The weekly Davis Index for export yard buying prices in New York decreased by $11/gt for #1 HMS by $10/gt for P&S 5ft, and by $3/gt delivered for shredded.
In Philadelphia, the Davis Index for export yard collection prices decreased for #1 HMS, P&S 5ft, and shredder feed by $12/gt delivered $13/gt, and $1/gt delivered, respectively.
In Houston, the weekly Davis Index declined by $26/gt for #1 HMS, by $28/gt for P&S 5ft, and by $23/gt for shredder feed.
US West Coast dock prices began trending down on Tuesday after remaining mostly rangebound last week.
Export demand was firming up until last week when docks began adjusting to updated global cues. Lower iron ore import prices in China and reduced scrap import deals in Turkey set the stage for uncertainty in the Asian buying markets.
Scrap prices and demand will remain strong in 2021. Still, buyers took a step back and lowered their bids given the uncertainty around China’s environmental policies in the active manufacturing and steelmaking zones across the country. Feedstock supply improvements on seasonality are also impacting buying choices. The few Chinese import scrap inquiries heard in the market have been adjusted lower.
Japanese export scrap prices are under pressure from the drop in bids in the Kansai scrap tender, lower domestic scrap buying prices and aggressively lower bids by Asian buyers. Japanese scrap export offers have fallen and are placing pressure on US scrap export offers in the containers and bulk markets.
Asian buyers from South Korea and Vietnam have also substantially lowered scrap import bids to balance still recovering domestic economies and a sluggish adoption of higher prices by buyers. Buyers are beginning to resist the higher finished steel prices despite the expectation for additional construction projects and recovering economies.
The weekly Portland Davis Indexes declined for #1 HMS by $8/gt, for P&S 5ft by $7/gt delivered, and for shredder feed by $9/gt delivered.
In San Francisco, the weekly indexes ticked down for #1 HMS and P&S 5ft by $3/gt delivered, respectively. The shredder feed index declined by $1/gt delivered.
Los Angeles docks encountered a price fall announcement last week followed by one on Tuesday totaling about $30/gt. Initially, market participants expected a second decline before the end of the month, but it was absorbed much sooner. Thus, the weekly Los Angeles Davis Indexes fell for #1 HMS and P&S 5ft by $26/gt delivered, respectively and shredder feed declined $25/gt delivered.

US containers

US containerized ferrous scrap export prices fell for the second successive week on Thursday amid diminishing bids in Turkey and Asia and deals at lower prices in the bulk and containers market.
The shakeup began last week with a drop in iron ore prices and uncertainty on how or whether China will continue steel production suspensions on environmental concerns.
Containerized ferrous scrap transactions continue being affected by container shortage and higher freight prices. As a result, large buyers are preferring bulk deals over containers.
The Asian region is dealing with many uncertainties beyond the economic and trading effects from China. In India, some regions are concerned about potential increases in COVID-19 cases, which may result in stricter restrictions that could affect construction projects and consumer purchases.
In Japan, Tokyo Steel has decreased its domestic ferrous scrap buying prices, which will place pressure on exporters to further discount container prices. Other Asian buyers in Taiwan and South Korea limited containerized buying activity this week.
The West Coast is witnessing limited trades and, in some cases, buyers not providing quotes. Still, some exporters are resisting lower bids anticipating a rebound.
The weekly Davis Indexes for containerized scrap in New York dropped by $18-27/mt on Thursday with #1 busheling and P&S 5ft falling by $18/mt fas. The index for HMS 1&2 (80:20) declined by $22/mt while shredded decreased by $20/mt fas.
In Los Angeles, the weekly Davis Indexes for #1 busheling, HMS 1&2 (80:20), P&S 5ft, and shredded all dropped by $19/mt. HMS 1&2 (80:20) and the better grades are trending at about a $15/mt spread, far tighter than the $20-30/mt achieved earlier in 2021. The latest bids being received by sellers at the end of Thursday are in the range of $340-350/mt fas.
San Francisco’s weekly indexes fell by an additional $12-18/mt this week. The index for #1 busheling shrank by $18/mt while HMS 1&2 (80:20) and shredded both fell by $15/mt.
In Seattle, the Davis Indexes decreased by $15-20/mt. The index for #1 busheling dropped by $15/mt as HMS 1&2 (80:20) fell by $20/mt. P&S 5ft decreased by $18/mt and shredded declined by $17/mt.

Mexico

Mexican ferrous scrap prices trended sideways in Bajío and Central Mexico but rose in Northern Mexico amid supply constraints in that region.
Market participants note price fluctuations will become more evident next week as some mills have started decreasing their prices while others are reducing volume intake depending on their immediate need, to deflate buying prices. A few mills were heard hinting at increasing buying prices on certain grades depending on the region.
Mexican mills have also been able to procure imported scrap at improved prices compared to early March, due to lower export prices from the US. Buyers and sellers are looking towards April as the Mexican ferrous scrap market is heavily vested in the US domestic market’s trends.
Mexican scrap buyers are bracing for strong prices into April with US’ present expectations of a sideways move in April on prime grades such as #1busheling and a mixed outcome on secondary grades such #1 HMS, P&S 5ft, and shredded depending on the region. In the Texas market, given the sideways to limited upside encountered in March, prices are expected to rebalance and trend up slightly in April against March settled levels.
Market participants expect ferrous scrap prices in Southeast and Midwest US to trend down $10-20/gt on seasonal increases in yard feedstock. Prices though are not expected to substantially tumble due to strong demand and mills seeking to maintain strong finished steel prices through the month.
The weekly Davis Indexes in North Mexico increased on Friday for #1 HMS by MXN403/mt ($19.66/mt) delivered Mexico consumer, for P&S 5ft and shredded by MXN167/mt delivered, respectively, for machine shop turnings by MXN217/mt, and for #1 busheling by MXN764/mt. Some buyers noted buying #1 busheling at higher prices in some loads due to tight supply.
The weekly Davis Indexes in Central Mexico and Bajío trended flat for shredded, #1 HMS, and machine turnings, #1 busheling, and P&S 5ft. ($1=MXN20.50)

Japan

Tokyo Steel reduced ferrous scrap purchase prices twice this week. Effective March 19, the steelmaker reduced ferrous scrap purchase prices by JPY500/mt ($4.6/mt) delivered Tahara and Utsunomiya plant, while prices at other plants remained unchanged.
On Wednesday South Korean steel mill Dongkuk purchased 23,000 mt of #2 HMS. Bids are expected to fall in the coming day on bearish sentiment globally.
Traders believe the Chinese appetite for ferrous scrap will increase in the coming months with their government promoting production via EAF’s for low low emission steel production.
Chinese mills are negotiating for Japanese, South Korean, US, and imports could rise in April.
The index for #2 HMS fell by JPY2,000/mt fob. On a fas basis, the index fell by JPY3,458/mt.
Bids for Japanese #1 busheling (Shindachi) fell by JPY2,000/mt fob and could fall further by JPY500-1,000/mt due to limited demand from importing countries and domestic steel mills. The weekly index for the grade fell by JPY1,625/mt fob Japan, while on a fas basis the index fell by JPY2,500/mt.
The weekly Davis Index for HS and shredded, Wednesday, fell by JPY2,750/mt fas.
Offers for HMS 1&2 (50:50) fell by $15-20/mt to $445/mt cfr Vietnam on Wednesday. After Tokyo steel lowered bids, the index for the grade fell by $18/mt cfr Haiphong.
In the Kansai tender announced on Tuesday, the winning bid was JPY3,026/mt lower than that at the Kanto tender on March 10. ($1=JPY109)

South Korea

Containerized imported ferrous scrap prices decreased this week amid bearish sentiment amid slow buying in Turkey and limited demand for finished steel in South Korea.
The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, fell by $24/mt from the prior week cfr South Korea. Bids fell by $25/mt cfr from the prior week, while offers fell by $15-20/mt cfr as suppliers tried to clear off inventory in anticipation of a further fall in global scrap prices.
With easing supplies, yards were keen on offering more volumes, but buyers exercised restraint.
The weekly Davis Indexes for P&S 5ft and #1 HMS, Wednesday, fell by $20/mt and $29/mt cfr South Korea, respectively. The index for shredded fell by $/23mt cfr from the prior week.
The weekly Davis Index for domestic Light A was flat at KRW420,000/mt($372.2/mt) delivered Pohang mill.
The Davis Index for domestic Heavy A fell by KRW7,500/mt delivered Incheon and Pohang. ($1=KRW1,130)

Taiwan

The Davis Index for US-origin containerized HMS 1&2 (80:20), Thursday, fell by $6/mt cfr Taiwan from a day ago but was flat on Friday. US-based exporters reduced offers by $20-25/mt cfr from the prior week as supply eased. The index fell by $24/mt from the prior week.
Bids for Japanese HMS 1&2 (50:50) were down by $35/mt cfr on falling Japanese domestic scrap prices after the lower-than-expected bids at the Kansai tender. Most mills stayed away from bidding amid falling scrap prices in the international markets. Importers are also tracking South Korean and Chinese mills’ purchases before negotiating.
The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded, and #1 busheling fell by $24/mt, $25/mt, $25/mt, and $21/mt cfr, respectively, from March 11. Mills have turned cautious amid sluggish finished steel demand and are focusing more on bulk scrap over containerized due to shortage of containers and vessel delays.
The weekly Davis Indexes for domestic HMS 1&2 (80:20) fell by TWD750/mt to delivered South Taiwan and North Taiwan mills, respectively. Feng Hsin reduced bids by TWD300/mt for ferrous scrap on Tuesday, while other mills kept bids even lower in anticipation of a fall amid weak global cues.
Feng Hsin cut rebars offers by TWD300/mt ex-works on Tuesday. ($1=TWD28.3)

China

Shagang Steel’s ferrous scrap purchase prices remained flat this week, while iron ore prices for 62pc Fe fell by $13/mt cfr Qingdao on Monday from the prior week. Chinese authorities are pushing for more EAF-based steelmaking in the country.
The index for P&S 5ft (small bulk) China port settled down by $15/mt from the prior week. Offers for HS fell by $15-20/mt cfr China pollution-related production restrictions but rose by $2.31/mt on Tuesday on recovering demand.
The weekly Davis Index for the HMS 1&2 (80:20) rose by CNY15/mt over the week. Steel prices could be under pressure due to rising restrictions.
In Tangshan, prices for Q235 150mm square billets rose by CNY10/mt amid firm demand. ($1=CNY6.5)

Vietnam

Vietnamese mills preferred bulk scrap due to the short supply of empty containers. After the Kansai tender, importers are waiting for prices to fall further. Mills continued to track Turkish and Chinese purchases for a clear price direction.
In the containers market, the weekly index for US-origin HMS 1&2 (80:20) Thursday fell by $24/mt cfr Vietnam from the prior week. Offers fell by $20-25/mt cfr from the week prior.
The weekly index for P&S 5ft and shredded, Thursday, fell by $22/mt and $23/mt cfr, respectively, amid low bids from most importing destinations.
In the bulk market, there was a difference of $10/mt between bids and offers for Japanese #2 HMS heard.
The weekly Davis Index for domestic HMS 1&2 (80:20) fell by VND245,000/mt ($10.6/mt) del South Vietnam, inclusive of taxes. Some traders expect bids to fall further on sluggish finished steel demand and improved imported scrap supplies. ($1=VND23,188)

Indonesia

Indonesian mills booked limited tonnages of ferrous scrap amid falling global ferrous scrap prices. They were cautious of new bookings as many exporters are still processing export registrations. Container shortages and reduction in buying prices from Turkey and China kept sentiment bearish.
The weekly Davis Index for HMS 1&2 (80:20) fell by $20/mt cfr Jakarta from the week prior. Bids fell in anticipation of a drop in scrap prices.
The indexes for P&S 5ft and shredded fell by $22/mt and $26/mt cfr Jakarta, respectively. Offers for US origin P&S 5ft fell by $25/mt cfr.
The weekly Davis Index for #1 busheling fell by $20/mt cfr from the prior week.

Thailand

The weekly Davis Index for domestic HMS 1&2 (80:20) fell by THB250/mt ($8/mt) del Rayong mill inclusive of taxes.
Mills reduced bids on bearish global cues and sluggish demand for finished steel. Steel mills are expected to restock scrap this week and are cautiously tracking Turkish and Asian buyers’ purchase prices.
Container shortage and vessel delays added to the woes of steel mills who are more interested in short transit imports. ($1=THB30)

Malaysia

The weekly indexes for HMS 1&2 (80:20) settled unchanged del western mills and eastern mills, inclusive of taxes, respectively.
Offers for US-origin HMS 1&2 (80:20) in FEUs were down $5-10/mt from the prior week on Tuesday. Steel mills preferred domestic scrap as it remained competitively-priced against imports. Mills have ample inventories for March and are focusing on domestic scrap for any immediate demand, said traders.
The Ministry of International Trade and Industry (MITI) provided new rules that require all metal scrap exports to Malaysia to have a pre-shipment inspection, require a Certificate of Approval (COA), and are subject to post-shipment inspection before unloading the ship. ($1=MYR4)

India

Imported ferrous scrap trades for high grades in India remained sluggish amid a wide disparity between offers and bids. Sellers refused to lower offers citing elevated freight rates and steady rebar demand. But easing scrap supply globally lowered bids.
Demand for containerised HMS scrap remained stable with deals heard for material from the UAE and Africa at unchanged prices.
The daily Davis Index for containerized shredded Friday cfr Nhava Sheva dropped by $6.25/mt from the prior week.
The daily Davis Index for UAE-origin HMS 1&2 (80:20), Friday, was down by $2/mt cfr Nhava Sheva. From a week ago, the index dropped by $6/mt.
Buyers’ expectations for HMS 1&2 (80:20) from the UK and Australia were $10-15/mt below offers.
Inquiries for turning scrap were down by $10-15/mt from a week prior.
The weekly indexes for P&S and #1 busheling settled down by $6/mt from a week ago.
Soaring freight rates as shipping lines struggle to offer containers and delivery on time kept things uncertain. To see regularisation of container availability, it could take H1 2021 period, fear insiders. ($1=Rs73.48)

India domestic

Domestic scrap prices declined this week in Mumbai amid sluggish demand from steelmakers. The index for HMS 1&2 (80:20) fell by Rs1,000/mt($13.79/mt) del Mumbai mills from Monday. The index for Sponge iron declined by Rs350/mt del Mumbai mills.
The Mandi Gobindgarh market was silent due as traders went on a strike protesting GST documentation issues. The daily Davis Index for HMS 1&2 (80:20) declined by Rs200/mt delivered mills. The index for Sponge iron rose by Rs600/mt del Mandi Gobindgarh.
The bi-weekly index for HMS 1&2 (80:20) declined by Rs625/mt del Chennai mills from March 11. In East India, the index for HMS 1&2 (80:20) fell by Rs250/mt delivered Durgapur mills.
Ferrous scrap prices could stay under pressure till March-end.

Pakistan

A few panic sales were reported early in the week but following the drop in bulk prices, but buyers decided to stay away from major deals.
The Davis Index for containerized shredded, Friday, cfr Port Qasim, inched down by $3.75/mt from the prior week.
The index for US-origin HMS 1&2 (80:20), Friday, cfr Port Qasim, dropped by $10/mt from a week prior.
Buyers were keen to get material booked at the earliest to receive deliveries latest by early April and avoid transportation delays during Ramadan on limited operating hours.
Hoping that prices have neared the bottom, offers for #1 HMS and P&S from UAE remained unchanged cfr Port Qasim.
The Davis Indexes for P&S 5ft and #1 busheling were down by $2/mt. Sellers are struggling with the non-availability of containers and margin squeeze due to high freight rates.
The index for domestic Bala billet dropped by PKR1,250/mt.
Downstream industries await a drop in steel prices to resume trade. HRC makers, however, remained upbeat amid rising demand, globally.
Asking rates for rebar dropped amid the increasing availability of discounted rebar in the market. The weekly Davis Index for rebar dropped by PKR1,000/mt ex-works Karachi, while in Punjab, the index decreased by PKR2,000/mt ex-works.
The weekly index for Art Q toke scrap equivalent to a mix of HMS and P&S and Pure Q toke scrap equivalent to shredded, Friday, settled down by PKR1,750/mt ($11/mt) ex-yard Lahore. ($1=PKR157.14)

Bangladesh

Bangladesh remained as the most preferred market in South Asia as demand was comparatively weak in Pakistan and India this week. Mills booked containerized scrap after booking a couple of mixed bulk from the US west coast.
A possibility of freight hike and heavy congestion at Chattogram port could push landed cost up by $30-35/mt.
Importers anticipate steel demand to drop once industrial activities slow during Ramadan. The arrival of monsoons could further extend the lull in the third quarter.
The Davis Index for containerized shredded, Friday, cfr Chattogram, dropped by $15.36/mt from a week earlier. Most mills booked to secure material and get deliveries latest by mid-April ahead of Eid celebrations.
The Davis Indexes for P&S and #1 busheling, Friday, were down by $14/mt and $9/mt, respectively, from the prior week.
Prices for US, UK, and Australia-origin containerized HMS 1&2 (80:20) were down $8-10/mt from a week earlier.
The weekly index for ship scrap equivalent to P&S inched down by BDT250/mt while that HMS 1&2 (80:20) remained unchanged ex-yards.
The domestic billet index dropped BDT500/mt from a week earlier. Most believe prices could stay rangebound for the next two weeks and then drop by at least BDT5,000/mt in April.
The index for large steelmakers’ rebar, Friday, increased by BDT250/mt ex-works. Large mills canceled discounts amid recovering demand. ($1=BDT84.72)

Metallics

CIS

The weekly Davis Index for CIS basic pig iron was flat on Friday amid firm offers and limited allocation of material.
Deals have been sporadic and mostly for small cargoes as many CIS pig iron exporters are sold out for April shipment and have kept their offers unchanged despite a downtrend in the global ferrous scrap market. Some suppliers have also sold significant tonnages of pig iron for May.
A Russian exporter sold 7,000mt of basic pig iron and 5,000mt of semi-nodular pig iron at an average price of $557/mt fob to Turkey. The material may be distributed to foundries.
The weekly Davis Index for CIS pig iron in Italy was also flat on Friday due to a lack of deals. Offers remained at $570-575/mt cfr, while Italian importers stepped back, anticipating lower prices amid falling scrap. In the meantime, a new transaction was fixed in Spain at $595/mt cfr for 5,000mt of Russian pig iron.

The weekly Davis Index for basic pig iron (BPI) was flat for the second successive week cfr New Orleans port on Friday as activity diminished and the metallics import market was quiet with offers remaining at last week’s levels.
Offers from the CIS are firm at $570/mt cfr Nola as producers have already sold a good portion of the material for May delivery. Buyers are hesitating to conclude until they receive more clarity on market direction.
Markets are declining globally but pig iron has encountered unusual market dynamics and is expected to remain firm in the near term, regardless of other grades’ movements and whether China resumes BPI purchases.
Participants cite that domestic BPI is in demand and sales transpiring this week are concluding at the current import value and above, at around $585/gt. The current price strength is due to limited prime scrap availability and the use of BPI to supplement prime scrap needs.
Market participants are also looking for more overall domestic pricing indications for all grades in April before finalizing the next BPI import deals. Early indications point to some softness with secondary grades however primes remain firm.
The Davis Index for nodular pig iron (NPI) imports remained unchanged. Offers and availability are limited for the material with no recent activity reported. Recent offers heard for NPI remain between $650-680/mt cfr Nola with bid level just under the range.
The weekly Davis Index for US hot briquetted iron (HBI) imports was flat. Offers or bids have not been heard recently however the material’s unchanged price valuation is based on price movements occurring for similar grades along with the most recent consumer interest levels.

India semi-finished and finished steel

The Davis Index for billet in Mumbai decreased by Rs300/mt ($4/mt) ex-works from a week ago, while the index for rebar unchanged in the same period.
Rebar prices were unchanged as inventories declined with steel mills.
In Raipur, the index for billet fell by Rs200/mt ($3/mt) ex-works from the previous Friday amid a fall in rebar prices by Rs100/mt. The market could remain silent ahead of the Holi festival in the upcoming week.
In Mandi Gobindgarh, the index for ingot remained unchanged ex-works from the previous Friday.
In Durgapur, the index for billet was up by Rs500/mt ($7/mt) ex-works on Thursday on sustained demand.
In Chennai, the index for billet dipped by Rs500/mt; in line with the rebar prices ($1=Rs73.78)

Shipbreaking

Shipbreaking scrap prices lost their steam this week and declined by Rs500-700/mt ($6.89-7.65/mt) ex-Alang. Major rolling mills in Mandi Gobindgarh buying scrap from Alang slowed production amid the ongoing strike among traders.
Prices for plates prices declined on low demand in the construction sector. The index for 2kg plates declined by Rs400/mt ex-Alang on Friday from Monday. The index for HMS attachments and Melting declined by Rs600/mt ex-Alang in the same period. The index for 14Ani declined by Rs700/mt ex-Alang.
There was a shortage of tonnage at yards as the two other South Asian countries offered higher prices for scrapped vessels.

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