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Ferrous market update: March 22-26

Ferrous Market Update 03/15/2021

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) was unchanged on Friday as new trades concluded at around the prevailing index level.
  • A Karadeniz-based mill purchased 20,000mt of HMS 1&2 (80:20), 10,000mt of shredded scrap and 10,000mt of bonus material from the UK at an average price of $420/mt cfr on Mar 26. On the same day, a Marmara-based mill bought 15,000mt of HMS 1&2 (80:20) and 25,000mt of shredded scrap at an average price of $414/mt cfr from a European exporter.
  • Turkish mills were expected to resume bookings this week and will remain active next week as mills secure cargo for late April and May shipments. As a result, suppliers are bullish and have begun a push for higher prices.
  • Rebar sales also rebounded in Turkey after buyers felt that scrap prices had bottomed out. Any scrap price increase looks likely to support higher rebar prices next week. Daily domestic spot rebar prices in Turkey rose by TRY50-80/mt ($6-10/mt) on Friday.
  • Export activity has also picked up with Turkish mills booking two to three rebar cargo sales to Asia at $650-660/mt cfr earlier this week. ($1=TRY8.01) 

 

Turkey domestic

  • The weekly Davis Index for DKP scrap in Turkey dropped by TRY94/mt ($12/mt) on Monday amid weak demand and negative sentiment in the imported scrap market.
  • Purchase prices for shipbreaking scrap in the Izmir region fell by $20/mt over a week in a bearish market. ($1=TRY7.89)

 

CIS

  • The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap dropped by $16/mt fob Baltic Sea on Monday and by $17/mt fob Black Sea amid strong negative sentiment in the export market.
  • Subdued demand from foreign outlets and a wide gap between bids and offers, resulted in no sales in the Russian ferrous scrap export market. 
  • Turkish mills, the key importers, were inactive and reduced bids to $410/mt cfr for HMS 1&2 (80:20) from St Petersburg and Rostov-on-Don, while the lowest offers from Russian suppliers were heard at $435/mt cfr. Most exporters refused to decrease their offer prices further.
  • Collection prices fell in Russia with the weekly Davis Index for A3 scrap dropping by RUB1,625/mt ($22/mt) in St Petersburg dock on Monday and by RUB850/mt ($11/mt) in Rostov-on-Don dock. ($1 = RUB74.91) 

 

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region decreased by €6/mt ($7/mt) on Tuesday in a challenging export market.
  • Turkish importers showed minimal interest in scrap bookings, anticipating lower prices so exporters from the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) reduced ferrous scrap collection prices in a bid to adapt to the downtrend. 
  • Negotiations were slow with no firm offers heard in a difficult collection environment. Most European suppliers preferred to wait for the next deal to get more clarity on prices. (€1 = $1.19)

 

UK dockside

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices declined by £6-8/mt ($8-11/mt) delivered dockside, respectively, on Tuesday.
  • UK’s dockside ferrous scrap buyers continued to realign purchase prices lower to protect margins from falling export prices. Ferrous scrap benchmarks on major seaborne trade routes, particularly to Turkey, have weakened recently in response to a lack of purchasing activity.
  • UK bulk processors resigned themselves to Turkish buyers potentially revising their bids lower for fresh cargoes given the 9pc depreciation in the Lira on Monday. 
  • The weekly indices for north and south UK OA (Plate & Structural) similarly declined by £7-9/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 £2/mt, on the same basis. (£1 = $1.39)

 

Spain 

  • Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices declined by €6/mt ($7/mt), respectively, on Friday. 
  • Spanish ferrous scrap import tags declined over the past week as buyers could retrieve the majority of UK and northern European dockside collection rate cuts. For example, UK and Amsterdam-Rotterdam-Antwerp-Ghent (ARAG) HMS 1&2 (80:20) dockside purchase prices fell by £6/mt ($8/mt) and €6/mt ($7/mt), respectively, during this period.
  • Spanish ferrous scrap buyers see a high degree of probability of import prices falling by a further €6-12/mt as they press UK suppliers to pass on further dockside rate cuts this week.
  • 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 €5/mt fob, respectively, during the week. (€1=$1.18)

 

US dockside

  • US East Coast and Houston dock collection prices for ferrous scrap trended down for the second successive week on softening exports and pricing, following gains made in February and early March.
  • Dockside prices have declined by about $10/gt since Mar 16, based on dock location and prior price levels. Many bulk exporters from Philadelphia and New York announced pricing for new orders of #1 HMS at around $335/gt Wednesday onwards.
  • East Coast dock sales for #1 HMS are transacting between $325-350/gt. In Boston, docks are paying $325-330/gt for the grade and remote material was priced near the high end of that range at various export yards on Tuesday based on demand and material flow particulars.
  • Market participants foresee more price erosion by the end of this week but note that bulk yards are short on inventory for new orders with no ground inventory or small volume remaining once final loading from prior orders completes on Tuesday.
  • Export activity remains subdued, and prices have fallen as material supply grows at export destination mills. Price levels for US-origin material to Turkey dropped by $11.66/mt in one week and fell by $25.63/mt in one month.
  • In Boston, the weekly Davis Index moved down for export yard #1 HMS, P&S 5ft, and shredder feed by $10/gt delivered, $9/gt delivered, and $11/gt delivered, respectively.
  • The weekly Davis Index for export yard buying prices in New York decreased by $11/gt for #1 HMS, by $13/gt delivered for P&S 5ft, and by $9/gt delivered for shredder feed.
  • In Philadelphia, the Davis Index for export yard collection prices of #1 HMS decreased by $9/gt delivered. P&S 5ft went down by $8/gt delivered and shredder feed fell by $13/gt delivered.
  • The weekly index in Houston dropped by $13/gt delivered, #10/gt, and $12/gt delivered for #1 HMS, P&S 5ft, and shredder feed, respectively.
  • US West Coast dock prices declined for the second successive week on weaker demand and softer prices.
  • West Coast indices dropped by $2-10/gt with Los Angeles leading the decreases in the region once again. The declines were lower compared to the $10-15/gt falls witnessed on the East Coast.
  • Asian buyers bid lower for imported ferrous scrap since countries like South Korea, Taiwan, and Japan reduced domestic scrap buying prices. Tokyo Steel announced successive price cuts in tandem with announcements of higher finished steel prices. Should demand surge as spring begins, strong finished steel prices may help support raw materials.
  • India, Pakistan, and Bangladesh reduced their ferrous scrap imports due to either a holiday or on market uncertainty. US exporters expect prices to adjust over the next few weeks but are forecasting strong demand from the emerging markets in April. The effects of the COVID-19 pandemic have added unforeseen logistics and demand forecasting uncertainties.
  • With Chinese futures indicating more optimism on Tuesday, demand may increase in Asian markets, pushing imported scrap prices higher.
  • The weekly Davis Indexes in Portland decreased for #1 HMS by $8/gt delivered, for P&S 5ft by $7/gt delivered, and for shredder feed by $4/gt delivered. A cautious sentiment at the docks is softening prices. One dock lowered prices by $10/nt with a potential for another decline by Apr 1 while another decreased them by $5/nt and was considering another round by Friday.
  • In San Francisco, the weekly indexes declined marginally with #1HMS down by $2/gt delivered, P&S 5ft decreasing by $3/gt delivered, and shredder feed falling by $2/gt delivered. Market participants expect prices to decline further next week but have assigned strength to the market on the need for fulfillment of previous orders and still tight scrap inventories.
  • The weekly Los Angeles Davis Indexes for #1 HMS and P&S 5ft fell by $7/gt delivered, $10/gt delivered while shredder feed trended flat.
  • After a cumulative decline of $30/gt over the previous two weeks, Los Angeles docks decreased prices by another $10/gt on #1 HMS and P&S 5ft. Some market participants speculate additional efforts at downward adjustments by Apr 1 if export demand and pricing do not strengthen.

 

US containers

  • Ferrous scrap containerized export indexes dropped for the third successive week on Thursday amid a shortage of containers and high freight costs.  
  • Large buyers have adopted a wait-and-see approach and sellers anticipate a surge of export interest in the next two weeks as the US market gears up for its early month domestic trading week and Asian markets gain clarity.  
  • Large Asian buyers, who are waiting for global commodity indication from the bulk buying prices by Turkish mills, are anticipated to prefer bulk deals over containers when their import activity resumes.  
  • Earlier this month, the domestic US ferrous scrap market was expected to trend down by $10-20/gt on secondary grades such as #1 HMS and shredded against March settled prices in most regions, excluding Texas. The sentiment has moved to a deeper loss of $30-40/gt on the same grades this week, with prices for primes also potentially trending down depending on the region.  
  • Primes such as #1 busheling were initially expected to trend sideways to up $10/gt on some deals due to limited supply but the production suspension at auto plants may limit the prime volume buys on the supply chain effect. 
  • Importers have adjusted bids downwards after Tokyo Steel in Japan and Hyundai Steel in South Korea decreased domestic ferrous scrap buying prices. Large mills are negotiating bulk scrap buys now.  
  • Bangladesh and Pakistan markets are encountering buying interest amid domestic recovery while imports to India are slow. Indonesia and Malaysia may also return to container purchases in early April. Several large Indian buyers noted they were not making inquiries this week as the offer prices were too high for their deal goals. Indian buyers are expected to return next week.  
  • In New York, the weekly Davis Indexes for containerized scrap fell for #1 busheling by $11/mt, for P&S 5ft by $9/mt, for shredded by $8/mt, for HMS 1&2 (80:20) by $1/mt, and for machine turnings by $3/mt.      
  • The weekly Los Angeles containerized scrap indexes declined for #1 busheling and HMS 1&2 (80:20) by $8/mt fas and $10/mt, respectively, while both P&S 5ft and shredded fell by $9/mt. 
  • Prices in Los Angeles around the index level are available but pending the availability of containers for booking. Participants believe that prices have reached a bottom on slow buying and the return of inquiries next week may support improved export prices. 
  • San Francisco’s weekly indexes for #1 busheling, HMS 1&2 (80:20), and P&S 5ft all decreased by $15/mt fas and shredded fell by $12/mt. 
  • In Seattle, the Davis Indexes decreased for #1 busheling by $13/mt while HMS 1&2 (80:20), P&S 5ft, and shredded all declined by $10/mt fas. 

 

Mexico

  • Mexico’s domestic ferrous scrap prices increased in the Central and Bajío regions on Friday amid anticipated shortages of prime grades in April.
  • Prices for secondary grades such as #1 HMS are expected to fall by $20-30/mt in the US domestic ferrous scrap market in April, while those for prime grades like #1 busheling are expected to trend sideways due to supply constraints in the US and Mexican market.
  • In Central Mexico, the weekly Davis Indexes for #1 HMS and P&S 5ft rose by MXN400/mt delivered Mexico consumer, respectively. Shredded climbed by MXN740/mt delivered, machine shop turnings rose by MXN390/mt and #1 busheling increased by MXN500/mt delivered.
  • The weekly Davis Indexes in Bajío for #1 HMS, P&S 5ft, shredded, and machine shop turnings all rose by MXN300/mt delivered Mexico consumer while #1 busheling fell by MXN70/mt.
  • In North Mexico, the weekly Davis Indexes for P&S 5ft and shredded rose by MXN17/mt delivered Mexico consumer. The index for #1 HMS, machine shop turnings, and #1 busheling fell by MXN459/mt delivered, MXN213/mt delivered, and MXN312/mt delivered. ($1=MXN20.59)

 

Japan  

  • Tokyo steel reduced domestic ferrous scrap bids twice this week. The steelmaker reduced ferrous scrap purchase prices by JPY500/mt ($4.6/mt) delivered Utsunomiya plant, effective Mar 26. However, bids remained unchanged for all other works. Earlier this week, the steelmaker lowered bids by JPY500/mt ($4.6/mt) delivered Tahara and Utsunomiya mill, effective Mar 23.
  • Revised bids for domestic #2 HMS at JPY41,000/mt ($377/mt) delivered Tahara, JPY40,500/mt delivered Okayama, JPY41,000/mt delivered Kyushu, JPY40,000/mt delivered Utsunomiya and JPY39,500/mt delivered Takamatsu.
  • On the other hand, Tokyo steel raised domestic finished flat steel sales prices by JPY3,000-5,000/mt ($28-46/mt) for April shipments following a rise in global prices. Prices of coils, including hot-rolled coils (HRC), checkered coils, pickled and oiled coils, and hot-dip galvanizing coils rose JPY5,000/mt to JPY90,000/mt ex-works. Rebar prices were kept unchanged at JPY73,000/mt ex-works.
  • The weekly index for #2 HMS fell by JPY1,250/mt fob amid lower bids from the South Korean mills. On a fas basis, the index fell by JPY1,250/mt to JPY37,750/mt ($347.1/mt) fas. ($1=JPY108.72)

 

South Korea  

  • Hyundai Steel cut bids for all grades of ferrous scrap on Mar 25 by JPY2,000/mt ($18/mt) from Mar 11. The steelmaker bid for #2 HMS at JPY40,000/mt (367/mt) fob Japan and skipped bidding for H1:H2 scrap. Bids for HS equivalent to P&S, shindachi, and shredded grades are at JPY45,000/mt, JPY45,000/mt, and JPY44,000/mt fob Japan, respectively. 
  • The steelmaker’s bids were higher than market expectations giving a boost to the offers that rose by $10-15/mt on Friday. 
  • Bulk cargo of 30,000-35,000mt A3 scrap from Russia was sold at $425/mt cfr South Korea. 
  • The Davis Index for containerized HMS 1&2 (80:20), Wednesday, fell by $19/mt from the prior week cfr South Korea. Most traders and sellers are not able to get material due to a mismatch between offers and bids. A few suppliers, who are trying to clear off inventory, sold material while the rest resisted lower bids.
  • The Davis Indexes for P&S 5ft, shredded and #1 HMS, Wednesday, fell by $18/mt, $17/mt, and $13/mt, respectively, from prior Wednesday. 
  • Domestic scrap prices in South Korea trended down for the second week with mills cutting bids by KRW10,000-15,000/mt ($9-13/mt) effective Monday. Major mills have booked bulk tonnages from the US and Japan, limiting domestic demand.
  • The weekly Davis Index for domestic Heavy A fell by KRW15,000/mt delivered Incheon and Pohang, respectively. Mills have enough inventory for March and are cautious of new bookings, said traders. ($1=KRW1,130)

 

Taiwan  

  • The Davis Index for US-origin containerized HMS 1&2 (80:20) cfr Taiwan dropped $14/mt from a week earlier on Thursday amid improving supply. On Friday, US-based exporters raised offers that had dropped by $15-20/mt early in the week. High freight rates and shipping challenges supported higher offers.
  • On a weekly basis, the Davis Indexes for containerized #1 HMS, shredded, P&S 5ft and #1 busheling fell by $13/mt, $14/mt, $13/mt, and $12/mt respectively, from March 18. Mills have turned cautious amid slow finished steel demand and are focusing more on bulk scrap over containerised due to a shortage of containers and vessel delays.
  • The weekly Davis Indexes for domestic HMS 1&2 (80:20) fell by TWD300/mt delivered South Taiwan and North Taiwan mills, respectively. Feng Hsin reduced scrap bids by TWD300/mt on March 20 and again by the same quantum on Monday resulting in a drop of TWD600/mt. Other mills kept bids higher to book as per their requirement. Feng Hsin cut rebar offers by TWD600/mt ex-works on Monday. ($1=TWD28.46)

 

China

  • Shagang steel held rebar (HRB400,16-25 mm) prices at CNY4,850/mt ($746/mt) ex-works for late-March deliveries. The steelmaker has kept spot prices unchanged since early-March. Yong steel and Zenith steel raised long steel prices by CNY50/mt for late-March deliveries.
  • The weekly Davis Index for the HMS 1&2 (80:20) dropped by CNY25/mt delivered mill from the prior week on rising stocks.
  • The index for Japanese HS or P&S 5ft (small bulk) China port settled Thursday cfr, down by $3/mt from the prior week. Most Chinese mills have lowered buying inquires for ferrous scrap in small bulk and bulk cargoes seeking lower prices. In containers, few deals continued on a trial basis. ($1=CNY6.5)

 

Vietnam 

  • Vietnamese mills remained silent for containerised deals and preferred to buy bulk scrap from Japan and the US west coast on a shortage of empty containers. 
  • In the containers market, the weekly index for US-origin HMS 1&2 (80:20), Thursday, fell by $12/mt cfr Vietnam from the prior week. Trades reported in the range of $395-400/mt cfr in TEU’s containers.
  • On a weekly basis, the Davis Indexes for containerized #1 HMS, shredded, P&S 5ft and #1 busheling fell by $13/mt, $14/mt, $13/mt, and $12/mt respectively, from March 18.
  • In small bulks, trades for Japanese #2 HMS concluded at $435/mt cfr, while offers moved up $10-15/mt in the latter half of the week. Despite a drop in fob prices, high freight charges kept cfr prices elevated. A 32,000mt shredded USWC cargo sold at $442/mt cfr Vietnam.
  • The weekly Davis Index for domestic HMS 1&2 (80:20) rose by VND70,000/mt ($3/mt) delivered South Vietnam inclusive of taxes on increased demand.
  • Hoa Phat steel raised SAE 1006 and SS400 grade HRC prices by $75/mt to $760-765/mt cif Vietnam equivalent basis for May and early-June shipments varying according to location. ($1=VND23,218)

 

Indonesia

  • Indonesian mills remained mostly in wait-and-watch mode and limited their bookings amid falling global ferrous scrap prices. Many exporters are still processing export registration amid delays. 
  • The Davis Index for HMS 1&2 (80:20) cfr Jakarta fell $10/mt from the week prior. No deals heard with bids falling in anticipation of a drop in scrap prices.
  • The weekly indexes for P&S 5ft and shredded fell by $13/mt and $12/mt cfr Jakarta, respectively. Offers for Australia and the UK-origin P&S 5ft fell by $20/mt to $425-430/mt cfr, while bids were at $415-420/mt cfr. Many traders indicated that mills are cautious of falling prices and waiting for prices to hit bottom.
  • The weekly Davis Index for #1 busheling fell by $10/mt cfr Jakarta with mills preferring domestic scrap. There is a shortage of premium grades amid stalled auto production. Automakers have announced production cuts due to a shortage of semiconductors, globally.

 

Thailand

  • After a long gap, a major mill is heard to have booked large tonnages of shredded at $435/mt cfr Thailand. 
  • The weekly Davis Index for domestic HMS 1&2 (80:20) inched down THB50/mt ($1.6/mt) delivered Rayong. ($1=THB30.98)

 

Malaysia 

  • Imports from Malaysia remained paused amid the announcement of 15pc export duty on the ferrous scrap. 
  • The weekly indexes for HMS 1&2 (80:20) settled unchanged delivered western mills and eastern mills inclusive of taxes, respectively. Offers for domestic P&S 5ft remained above MYR1,800-1850/mt delivered mill on Tuesday.
  • Malaysia has proposed an amendment to its customs duties to impose a 15pc duty on exports of ferrous scrap, effective March 25, according to official documents. Through this duty, the government aims to restrict ferrous scrap exports and secure material for domestic producers. This could lower the country’s dependency on imports. ($1=MYR4.12)

 

India 

  • Few sellers and buyers traded imported ferrous scrap in India this week. Local steel demand is weak amid concerns around the resurgence of the COVID-19 pandemic and Holi festival. 
  • Primary mills have shifted their focus on the production of flat steel to make the most of the bullish HRC market. Effective April, flat steel prices are set to increase by Rs2,500-3,000/mt while long steel prices could rise by Rs1,000/mt. If the export market remains bullish, ferrous scrap deals could pick up in April, believe traders. 
  • The daily Davis Index for containerized shredded rose $3.75/mt cfr Nhava Sheva. Prices increased by $1.25/mt from the prior Friday.
  • The daily Davis Index for UAE-origin HMS 1&2 (80:20), Friday, cfr Nhava Sheva settled unchanged from Thursday and up by $2/mt from a week ago. A limited volume of Dubai-origin HMS #1 and P&S sold at around $405-410/mt cfr Nhava Sheva. Many furnace owners are unsure of steel prices supporting imported scrap purchases in the near term. 
  • With most US suppliers returning to overseas markets, prices came under pressure early this week. Offers for HMS 1&2 (80:20) from the UK and Australia were high on high freight charges despite buyers’ expectation $10-15/mt below offers. 
  • Trading for containerized P&S and #1 busheling was very sluggish in India. From a week ago, the indexes for P&S and #1 busheling cfr Nhava Sheva rose by $1/mt.
  • Shipbreaking melting scrap prices recovered in Alang on pre-holiday bookings. In Mandi Gobindgarh, an extended strike due to GST-related issues limited trades. In Mumbai, rebar prices recovered but a resurgence of COVID-19 lowered sales. 
  • The impact of a large vessel Ever Given stuck in the Suez Canal was limited on steel prices. But there were transportation delays on European routes. ($1=Rs72.49)

 

India domestic

  • Domestic ferrous scrap prices in Mumbai and Mandi Gobindgarh settled unchanged on Friday from Thursday. From a day ago, HMS 1&2 (80:20) prices in Mumbai, however, rose by Rs1,500/mt del mill. Shortage of local scrap supported prices. But mills bought material only on a need basis. There were rumours about a stringent lockdown in the state of Maharashtra as COVID-19 cases kept touching new highs every day in the past one work. 
  • Markets in Mandi Gobindgarh continued to stay silent with traders still on strike. The daily Davis Index for HMS 1&2(80:20) settled flat.

 

Pakistan  

  • Pakistani buyers continued trades for shredded, albeit, in very limited volumes to refill inventories before Ramadan. Holiday mood also hindered business sentiment as workers in some cities fear the resurgence of COVID-19. 
  • The Davis Index for containerized shredded, Friday, cfr Port Qasim rose $1.78/mt from Thursday. Mills concluded shredded booking at $430-435/mt cfr Qasim pushing the index up by $5.71/mt from the prior week. Despite increasing supply from yards, a hike in container freight rate increased the landed cost of scrap.
  • The daily index for US-origin HMS 1&2 (80:20), Friday, settled cfr Port Qasim, unchanged from Thursday and last Friday. Very few major deals heard amid healthy domestic markets. 
  • The market is hopeful that the Suez Canal blockage clears, as expected, in the next two days and does not lead to any more shipping challenges. The Davis Index for UAE-origin HMS 1&2 (80:20) cfr Port Qasim, stable from Thursday while up $6/mt from a week earlier. 
  • The Davis Indexes for P&S 5ft and #1 busheling cfr Port Qasim, rose $5/mt from the prior Friday. Scaling back of auto production due to a shortage of semiconductors could impact generations of prime grade scrap.
  • On a weekly basis, the index for domestic Bala billet increased by PKR1,250/mt ex-works. 
  • Asking rates for rebar increased amid improving demand. The weekly Davis Index for rebar increased by PKR500/mt ex-works Karachi, while in Punjab, the index increased by PKR1,000/mt ex-works. 
  • On rising demand, the weekly index for Art Q toke scrap equivalent to a mix of HMS and P&S, Friday, rose PKR1,000/mt ($6/mt) ex-yard Lahore. Trades for Pure Q toke scrap equivalent to shredded ex-yard Lahore pushed weekly index rose PKR2,000/mt. ($1=PKR155.44)

 

Bangladesh

  • Bangladeshi steel mills resumed inquiries and trades, but few suppliers accepted lower bids, this week. Most sellers have decided to postpone offers until April to gain clarity on the freight hikes announced by leading shipping lines. 
  • Initial indications suggest landed cost could move up by $25-35/mt given a steep hike in freight charge plus surcharges on the port congestion.
  • The daily Davis Index for containerized shredded, Friday, settled cfr Chattogram, rose by $1.57/mt. Few trades for the UK-origin containerized shredded reported on improved demand.
  • Large mills hastened their purchases of premium scrap grades like P&S and Busheling in Bangladesh. Offers in containers rose $10/mt on the possibility of tightening industrial generation due to the shutdown of auto plants. The Davis indices for P&S and #1 busheling, Friday, rose by $2/mt, respectively, from the prior week.
  • Prices for HMS 1&2 (80:20) from the US, UK, and Australia and Latin America cfr Chattogram remained largely stable from last Friday. 
  • Amid stable supply from shipbreaking operations, the weekly index for ship scrap equivalent to P&S inched up by BDT250/mt ex-works. The index for domestic HMS 1&2 (80:20) rose by BDT750/mt ex-yard Chattogram. 
  • Domestic billet prices increased ex-works Chattogram, with the index up BDT500/mt from a week earlier. Most believe prices could remain unchanged for the next two weeks and then drop by at least BDT5,000/mt in April. 
  • Indian Sponge iron export prices rose on increased domestic demand. 
  • Real estate contractors and other end-users looked to purchase rebar from semi-automatic mills because of their cost competitiveness. The index for large steelmakers’ rebar, Friday, increased by BDT500/mt ex-works. The index for rebar from medium-scale mills in Dhaka was up by BDT250/mt ex-works.
  • In the second half of the week, 16mm ship plates offers rose BDT2,500-3,000/mt ex-yards from the prior week. ($1=BDT84.72)

 

Metallics

 

CIS 

  • The weekly Davis Index for CIS basic pig iron was unchanged on Friday due to a lack of deals.
  • The CIS export pig iron market was quiet, though prices remained firm amid limited availability of the material, despite a downtrend in the global ferrous scrap market. CIS suppliers are sold out for April shipment, and some of them are already well booked for May shipment.
  • Demand for pig iron was subdued, but most CIS exporters were not under pressure to sell and preferred to hold off negotiations as scrap prices are expected to rebound next week.
  • The weekly Davis Index for CIS pig iron in Italy was flat on Friday on suspended trading. Offers remained at $570-575/mt cfr, so negotiations were sporadic with no deals reported. 

 

US

  • The weekly Davis Index for basic pig iron (BPI) ticked down by $2/mt cfr New Orleans port on Friday due to inactivity in the metallics import market since the beginning of March. 
  • CIS producers are essentially sold out through April with several May deals already placed. Offers for material remain at $570/mt cfr Nola, however, US consumers see mild softness in this market and view BPI at a slightly lower price point. 
  • Market sentiment on BPI pricing is mixed with the range restricted at $560-570/mt cfr Nola until more market cues are made evident.
  • April trading may impact pig iron imports as domestic pricing for secondary grades are expected to decline. Prime grades, however, remain tight and in strong demand. BPI continues to sell as a prime alternative, currently supplementing mills’ needs for the material.
  • The Davis Index for nodular pig iron (NPI) imports held unchanged at Nola port. 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 also flat. Offers or bids have not been heard recently and the material’s unchanged price valuation is based on price movements occurring for similar grades along with the most recent consumer interest levels.

 

India

  • The index for Sponge iron rose by Rs100/mt from Thursday but fell by Rs300/mt del Mumbai mill from a week ago. A few days ago, Indian state-owned miner, NMDC raised its iron ore prices. But its impact on Sponge iron prices was limited. Mills stayed away from purchases in Mumbai amid fears of a lockdown hitting economic activities. Like ferrous scrap, prices for Sponge iron in Mandi were also unchanged due to the strike.

 

India semi-finished and finished steel

  • The daily Davis Index for billet in Mumbai increased by R800/mt ($11/mt) ex-works compare to the previous Friday on healthy booking from re-rolling mills. The prices rise is also supported by elevated imported scrap offers. The index for rebar was largely stable.
  • In Raipur, the daily index for billet up Rs500/mt ($7/mt) ex-works from the previous Friday in-line with higher rebar prices. The daily index for rebar rose Rs300/mt ($4/mt) on good demand. 
  • In Mandi Gobindgarh, the daily index dipped marginally by Rs100/mt ($1/mt) ex-works from the previous Friday. 
  • Export demand supported billet prices in the eastern city of Durgapur, bi-weekly index for billet rose Rs400/mt ($6/mt) ex-works Durgapur on Thursday compared to the prior week. ($1=Rs72.58) 

 

Shipbreaking 

  • Shipbreaking scrap prices declined this week by Rs400-600/mt ($5.51-8.27/mt) amid sluggish demand from mills. Traders indicate a lack of price direction in the market. 
  • The daily Davis Index for 14Ani declined by Rs400/mt ex-Alang on Friday as compared to Monday.
  • Demand for ship plates was also low as construction activity has slowed due to the sudden rise in COVID-19 cases. Rumours of lockdown also impacted sales. The index for 2kg plates declined by Rs700/mt ex-Alang in the same period.
  • Mills are still preferring to buy raw material on a need basis and traders are expecting prices to improve post-Holi festival.
  • The shortage of material continued this week as labourers in Alang are on a holiday slowing demolition work.
  • The index for HMS attachments and Melting declined by Rs600/mt on Friday as compared to Monday ex-Alang. ($1=Rs72.51)

 

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