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Ferrous market update: March 29-April 2

Ferrous Market Update 04/02/2021

 

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) was unchanged on Friday as several countries broke for a long Easter weekend and US suppliers remained absent.
  • Baltic offers are hovering at around the $430/mt cfr level with mills continuing to suggest lower levels.
  • The US domestic market is expected to trade next week and early sentiment points to large increases for industrial scrap grades and weakness in obsolete grades.
  • Turkey’s mills see any potential weakness in the US as a buying opportunity, while suppliers are bullish on grades like shredded and P&S 5ft, which US mills will soak up to alleviate the shortage of prime scrap. Some US suppliers have said they are not interested in a market below $440/mt.
  • Also contributing to the uncertainty in price direction is the concern in Turkey about future interest rates given the recent top-level personnel changes at its central bank. The first casualty of the domestic uncertainty has been the Turkish lira, which continues to trade below TRY8 to the US dollar as markets are unable to gauge how this will play out for its construction and infrastructure sectors, and of course, Turkey’s overall economy.
  • Export markets for semi-finished and finished steel are strong, however, and mills will look to ramp up export volumes should the domestic markets falter. 
  • If China completely removes rebates on steel exports it will embolden other countries like India and Turkey to increase their exports since China’s export costs will rise by $80-100/mt. The country is considering doing this to reduce its steel output and increase the consumption of domestic steel.
  • Global hot-rolled coil and rebar prices are still trailing the US but such a move would very quickly narrow those gaps as coil and rebar supply in Asia would tighten rapidly in such an environment.
  • There is already a bullishness across Asian markets, evidenced by a $5/mt increase in bulk import prices this week and a $15-20/mt gain in container import prices across Asia this past week. 

 

Turkey domestic

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey inched up by TRY1/mt delivered on Monday after only one mill raised its purchase price.
  • Purchase prices for shipbreaking scrap in the Izmir region decreased by $8/mt to $392/mt delivered over the week. ($1=TRY8.18)

 

CIS

  • The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap rose by $2/mt fob Baltic Sea and by $4/mt fob Black Sea on Monday amid improving demand from foreign outlets.
  • The market began seeing signs of a rebound, despite the lack of reported ferrous scrap sales from Russia to Turkey last week, after Turkish mills resumed bookings for April and May shipments. 
  • Russian suppliers are now targeting a minimum of $427/mt cfr Turkey for HMS 1&2 (80:20) after a US exporter fixed a deal at that level.
  • A recycler from Far East Russia sold around 35,000mt of A3 material at $425/mt cfr to a South Korean mill last week.
  • Collection prices declined further in Russia due to the lack of deals. The weekly Davis Index for A3 scrap slid by RUB125/mt ($2/mt) to RUB23,700/mt delivered St Petersburg dock on Monday and by RUB250/mt ($3/mt) to RUB21,600/mt delivered Rostov-on-Don dock. ($1=RUB75.88) 

 

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region increased by €5/mt ($6/mt) delivered dockside on Tuesday.
  • Renewed activity with a couple of fresh bookings to Turkey over the past week left north European-based bulk processors scrambling to secure sufficient volumes.
  • Some bulk exporters in the Netherlands (Amsterdam and Rotterdam) and Belgium (Antwerp and Ghent) were heard to have raised bids as high as €315/mt for HMS 1&2 delivered dockside.
  • The weekly Davis Indexes for HMS 1 and bonus scrap in the ARAG region both edged €1/mt higher on Tuesday. (€1=$1.17)

 

UK dockside

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices declined by £7-9/mt ($8-11/mt), delivered dockside on Tuesday.
  • UK’s dockside ferrous scrap buyers succeeded in driving purchase prices down further this week, despite a rebound in export prices on major seaborne trade routes. 
  • Over the past week, Davis Index’s Turkish HMS 1&2 (80:20) ferrous scrap import benchmark increased by almost $8/mt cfr Turkey on Mar 29 following fresh bookings. That said, UK bulk processors have skilfully managed to carve out further discounts to their purchase prices to the benefit of their overall margins.
  • One UK-based ferrous scrap trader also noted that dry bulk freight rates had “come off hard” over the past 24-48 hours.
  • The weekly indices for north and south UK OA (Plate & Structural) declined by £9-11/mt to £240/mt, delivered dockside, respectively, during the week.
  • Davis’ weekly north and south UK 5A/5C (frag feed) ferrous scrap indices dropped by £8/mt to £140/mt, on the same basis. (£1=$1.38)

 

Spain 

  • Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices climbed by €6/mt ($7/mt) cfr on Friday.
  • Spanish ferrous scrap import prices reversed course over the past week, on fresh bookings at higher levels in competing major seaborne trade routes.
  • Shortsea small bulk coaster freight rates have softened in the past week but remain at about €30/mt, with some UK suppliers opting to sell on a fob basis to avoid the “headaches” of fixing vessels.
  • As usual, Spanish ferrous scrap buyers have used competitively priced locally sourced material as leverage in negotiations to limit the extent of price hikes from overseas suppliers.
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices increased by €2-5/mt fob, respectively, during the week. (€1 = $1.18)

 

US dockside

  • US East Coast and Houston dock collection prices for ferrous scrap declined modestly on Tuesday in line with softness in export activity through most of March. 
  • Markets are also quietly awaiting the looming April trade expecting to see some softness on well-supplied secondary grades with primes holding firmer on tight supply.
  • Sellers to the East Coast docks cited the same price levels this week, though some foresee an upward potential by next week. The Davis Index for US HMS 1&2 (80:20) exports to Turkey inched up by $4.58/mt since last week to $423.75/mt cfr on Tuesday compared to 419.17/mt cfr on Mar 23.
  • East Coast dock sales for #1 HMS were transacting in the full range of $315-340/gt on Tuesday versus last week’s range of $325-350/gt, with remote material priced near the high end of the scale. The material is largely transacting close to $335/gt in New York and Philadelphia, with some deals at the lower end of the range in Boston.
  • In Boston, the weekly Davis Index for export yard #1 HMS moved down by $3/gt and fell by $4/gt for P&S 5ft delivered Boston dock. Shredder feed declined by $10/gt delivered. 
  • The weekly Davis Index for export yard buying prices in New York decreased by $2/gt, and $7/gt for #1 HMS and shredder feed, respectively, and was flat for P&S 5ft. 
  • In Philadelphia, the Davis Index for export yard collection prices of #1 HMS remained unchanged and ticked down by $2/gt and $7/gt for P&S 5ft and shredder feed, respectively. 
  • In Houston, the weekly Davis Index remained unchanged for #1 HMS and P&S 5ft. The shredder feed index fell by $4/gt delivered. 
  • US Export yard ferrous scrap prices trended sideways on the West Coast with increases of around $4-5/gt in Los Angeles on Tuesday.
  • Export sentiment strengthened on the West Coast after Turkish mills began looking for deals for April and May shipments. The Davis Index for US-origin HMS 1&2 (80:20) rose by $3.27/mt cfr Turkey over the past week. However, the weakening of the Turkish lira against the US dollar could cause some volatility in the market in the near term.
  • Sellers are optimistic about the export market in April and have begun offering larger scrap volumes at higher prices especially at Los Angeles docks, where prices have trended lower compared to other West Coast docks in March. For example, #1 HMS has declined by around $9/gt delivered Los Angeles dock since the end of February, whereas the grade has decreased by $6/gt delivered Portland dock over the same timeframe. 
  • The weekly Davis Indexes for export yard scrap in Portland decreased for #1 HMS by $1/gt delivered and fell by $2/gt for shredder feed. P&S 5ft remained unchanged on Tuesday. 
  • Participants in Portland expect declines of $10-15/gt on domestic secondary and shredded grades in April, despite potentials of $30-40/gt decreases in the Midwest, Southeast, and the East Coast. This expectation is being attributed to the lower than $50/gt increases witnessed in Portland compared to the other regions during March’s domestic trade.
  • In Los Angeles, the weekly indexes for #1 HMS and shredder feed increased by $5/gt. P&S 5ft inclined by $4/gt delivered. LA docks did not see any price increase announcements during the week, though participants believe the market will incline due to the positive shift in exports.
  • San Francisco’s export yard indexes settled unchanged for #1 HMS, P&S 5ft, and shredder feed.

 

US containers

  • The US containerized market rebounded on Thursday after three successive weeks of declines. 
  • Freight prices increased in tandem with export prices for ferrous scrap while the lack of container availability continued to plague transactions on both coasts.
  • Bulk scrap import buys may be supported by the shortage of containers. Small bulk buys from Japan have been heard up $10/mt from previous week’s deals with rising offers. The rise in the bulk market is also supporting price increases in Japanese containers despite the limitation on more container purchases due to the shortage. 
  • Large buyers adopted a wait-and-see approach in the previous week as sellers were withdrawing from making offers on the expectation that prices would rebound by early April. At that time, buyers were hesitant on some price declines in their respective domestic ferrous scrap markets and lower price cues from the Turkish import scrap deals. 
  • However, this week buyers returned to quoting and purchasing activities due to demand from mills. The increased ferrous scrap demand along with an improved sentiment regarding Turkey’s buying direction lifted prices on the US West Coast. 
  • On the East Coast, export scrap also encountered firmer offers as US domestic scrap trading sentiment began to rise. Buyers from Bangladesh, Pakistan, and India were active in the market to fulfill their raw material needs. Higher sponge iron export prices from India also supported rising import ferrous buys from the neighboring regions. 
  • The US domestic ferrous scrap market is due to trade next week but preliminary conversations are having some sellers shifting previous expectations of down $30-40/gt on cuts and shredded against March settled prices to down $20-30/gt on the grade depending on the region. 
  • Some market participants feared that export volumes would be vastly offered inland but at moment the prospect is limited. 
  • In New York, the weekly Davis Indexes for containerized scrap increased by $13-28/mt with #1 busheling, P&S 5ft, shredded, JMS 1&2 (80:20), and machine shop turnings rising by $28/mt fas, $23/mt, $19/mt fas, $13/mt and $23/mt fas, respectively.
  • The weekly Los Angeles containerized scrap indexes rose for #1 busheling and P&S 5ft by $23/mt fas. HMS 1&2 (80:20) rose by $15/mt and shredded gained by $20/mt fas. 
  • San Francisco’s weekly indexes reversed course from their losses in the prior week with #1 busheling, HMS 1&2 (80:20), P&S 5ft, and shredded climbing by $23/mt, $15/mt, $20/mt, and $17/mt fas, respectively. 
  • The Davis Indexes in Seattle increased for #1 busheling by $23/mt fas, for HMS 1&2 (80:20) by $22/mt fas, and for both P&S 5ft and shredded by $25/mt fas. 

 

Mexico

  • Mexico’s weekly domestic ferrous scrap prices increased in the Central and Northern regions on Friday but were mixed in Bajío.
  • Market participants in the Central area believe scrap prices in the region rose after Deacero, Mexico’s largest steelmaker, hiked scrap purchase prices by $5/mt every day over the past week to a total increase of $25/mt.
  • Prices for obsolete grades are expected to fall by $20-30/mt in the US domestic ferrous scrap market in April, which would impact those grades’ prices in Mexico too. 
  • International prices may fall during Ramadan, which falls between Apr 13 and May 12, as Turkey could stop pushing prices up, a market participant said.
  • In Central Mexico, the weekly Davis Indexes for #1 HMS, P&S 5ft, shredded, machine shop turnings, and #1 busheling rose by MXN500/mt delivered Mexico consumer.
  • The weekly Davis Indexes in North Mexico for #1 HMS. P&S 5ft, and shredded rose by MXN23/mt delivered, MXN33/mt, and MXN17/mt delivered Mexico consumer, respectively. Machine shop turnings and #1 busheling declined by MXN178/mt and MXN361/mt, respectively.
  • The weekly Davis Indexes in Bajío for #1 HMS fell by MXN420/mt delivered, P&S 5ft declined by MXN395/mt, shredded and machine shop turnings remained unchanged and #1 busheling rose by MXN50/mt delivered. ($1=MXN20.31)

 

Japan  

  • Japanese exporters raised offers for ferrous scrap on strong global cues. Bids, however, were unchanged from the prior week. The weekly index for #2 HMS rose by JPY625/mt ($5.7/mt) fob also on a shortage of scrap in the domestic markets and higher freight rates. On a fas basis, the index rose by JPY625/mt.
  • Tokyo Steel kept its bids unchanged from March 26, but sellers expect a rise due to shortage and increased demand from China and other South Asian countries in the coming days.
  • Offers for Japanese #1 busheling (Shindachi) rose by over JPY500/mt on both fob and fas basis. 
  • The weekly index for HS settled unchanged while that for shredded increased by JPY1,500/mt fas. 
  • The index for HMS 1&2 (50:50), Wednesday, rose by $9/mt cfr on global cues.
  • The index for Japanese HMS 1&2 (50:50) rose by $6/mt cfr Taiwan. Traders indicate prices rose on rising Chinese steel and iron ore futures. Most offers rose by $5/mt from the prior week. ($1=JPY110.5)

 

South Korea  

  • Few containerized bookings heard from South Korean mills following a rise in imported scrap prices to Taiwan and a shortage of containers at the USWC. Leading steelmakers bought bulk cargoes last week and are negotiating for more shipments amid tight domestic scrap supply. Hyundai Steel kept bids for Japan-origin scrap unchanged. 
  • South Korean mills are waiting for steel prices to stabilize in China before they book more scrap from seaborne markets. Offers rose on rising freight rates, vessel delays, and shortage. 
  • Mills stayed away from containerized purchases and preferred negotiating for bulks.
  • The Davis Index for containerized HMS 1&2 (80:20), Wednesday, rose by $17/mt cfr South Korea. Bids rose by $15-17/mt cfr South Korea. 
  • The Davis Indexes for P&S 5ft and #1 HMS, Wednesday, rose by $16/mt and $20/mt cfr South Korea, respectively. 
  • The index for shredded rose by $12/mt cfr from the prior week. 
  • The weekly Davis Index for domestic Heavy A rose by KRW12,500/mt and by KRW5,000/mt delivered Incheon and Pohang, respectively. 
  • South Korean mills raised domestic scrap bids by KRW2,500-12,500/mt ($2-11/mt) effective Tuesday. 
  • The weekly Davis Index for domestic Light A rose by KRW2,500/mt delivered Pohang mill. With the current rise in buying prices in Turkey and China, mills are expected to remain cautious and closely watch purchases by other Asian countries. ($1=KRW1,128)

 

Taiwan  

  • The daily Davis Index for US-origin containerized HMS 1&2 (80:20), Friday, was unchanged. US-based exporters could raise offers further on container shortage and the resulting rise in freight rates. The index rose by $17/mt from the prior Friday.
  • From a week ago, the Davis Indexes for containerized #1 HMS, shredded, P&S 5ft and #1 busheling rose by $18/mt, $15/mt, $17/mt, and $17/mt cfr, respectively, from March 26. 
  • Mills are cautiously watching Turkish and Chinese buying trends. Traders anticipate a $10/mt cfr rise next week.
  • The weekly Davis Indexes for domestic HMS 1&2 (80:20) rose by TWD300/mt($10.5/mt) and by TWD250/mt delivered South Taiwan and North Taiwan mills, respectively. Feng Hsin kept domestic scrap bids flat on Tuesday while raised rebar offers by TWD200/mt.
  • On Tuesday, few offers for HMS 1&2 (70:30) from Central America in FEUs were heard at prices that were up by $5-10/mt cfr from the prior week. ($1=TWD28.5)

 

China

  • In China, Shagang Steel raised ferrous scrap bids amid rising raw material prices. With bullish steel, coal, and iron ore futures and stricter pollution-related production curbs, market participants expect demand for ferrous scrap to rise. Chinese authorities are pushing for more EAF-based steelmaking in the country. 
  • Mills could also focus on importing billets to fulfill domestic and international finished steel demand. Production restrictions and rising demand for finished steel pushed domestic billet prices to a 12.5-year high and up CNY160/mt from the prior week.
  • The weekly Davis Index for the HMS 1&2 (80:20) rose by CNY85/mt delivered mill. Bids for imported scrap too rose fuelled by the limited availability of domestic scrap.
  • China may overhaul its steel tax policies to include lower export rebates and import duties on some steel products. The country may also reduce value-added tax for domestic iron ore producers or total tax exemptions.
  • The index for Japanese P&S 5ft (small bulk) China port rose by $5/mt from the prior week. Most Chinese mills have raised inquires for ferrous scrap in small bulk amid pollution control restrictions and a rise in iron ore prices. ($1=CNY6.6)

 

Vietnam 

  • Vietnamese mills limited containerized scrap purchases and preferred to buy bulk from Japan amid a shortage of empty shipping containers. Mills are cautiously checking Chinese and Turkish purchases ahead of Ramadan. 
  • In the containers market, the weekly index for US-origin HMS 1&2 (80:20), Thursday, rose by $18/mt cfr Vietnam from the prior week. 
  • Vietnamese mills are anticipating a rise in demand for HRC and rebars in the export markets and may increase the purchase of ferrous scrap. 
  • From last week, the Davis Indexes for containerized #1 HMS, shredded, P&S 5ft, and #1 busheling rose by $21/mt, $22/mt, $15/mt, and $17/mt cfr, respectively, from March 25.
  • In small bulks, trades for Japanese #2 HMS concluded at prices up by $10/mt cfr from the prior week. 
  • The weekly Davis Index for domestic HMS 1&2 (80:20) rose by VND10,000/mt delivered South Vietnam inclusive of taxes. Some traders expect bids to rise further on improved finished steel demand and higher raw material prices. ($1=VND23,069)

 

Indonesia

  • The Davis Index for HMS 1&2 (80:20) settled up $25/mt cfr from the week prior.
  • Indonesian mills raised offers on global cues and rising demand for finished steel in the domestic market. Traders indicated that a rise in demand is also due to depleting inventory and a shortage of domestic scrap. 
  • Unavailability of containers at USWC and rising freight is expected to increase offers, said market participants. Mills are closely watching Chinese billet and scrap purchases. They anticipate a rise in demand for scrap on positive Chinese futures for raw material and steel.
  • The weekly indexes for P&S 5ft and shredded rose by $25/mt and $22/mt cfr Jakarta, respectively. Offers for Australia and the UK-origin P&S 5ft rose by $20-25/mt cfr.
  • The weekly Davis Index for #1 busheling rose $28/mt cfr Jakarta. There is a shortage of premium grades amid stalled auto production. Automakers have announced production cuts due to a shortage of semiconductors, globally. On Thursday, bids for domestic busheling were up by $20-25/mt from the prior week.
  • Imports from Malaysia remained paused amid the announcement of a 15pc export duty on ferrous scrap.

 

Thailand

  • The weekly Davis Index for domestic HMS 1&2 (80:20) rose by THB100/mt ($3.2/mt) delivered Rayong mill inclusive of taxes. Mills raised procurement for domestic scrap amid imported scrap shortage and rising freights. 
  • Thai mills were offered billets on a cfr basis at prices up by $20-30mt from the prior week. Demand, however, was limited as buyers decided to wait for more clarity on the price direction. ($1=THB31)

 

Malaysia 

  • The weekly indexes for HMS 1&2 (80:20) rose by MYR30/mt($7.3/mt) delivered western mills and eastern mills inclusive of taxes. 
  • Malaysia has imposed a 15pc duty on exports of ferrous scrap. 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. Many traders expect higher demand for domestic scrap in the coming weeks, thereby lifting bids.
  • Limited offers for US-origin HMS 1&2 (80:20) in FEUs were at prices up by $5/mt from the prior week on global cues. ($1=MYR4)

 

India 

  • Indian ferrous scrap importers were upbeat amid strengthening domestic and international steel prices. Indian mills could fill in the void left by China in export markets amid production curbs in Tangshan.
  • Offers for shredded on a cfr Nhava Sheva basis jumped amid active demand in Pakistan and prices hitting a one-month high. The Davis Index for containerized shredded was up by $8.75/mt cfr Nhava Sheva from a day ago. From a week ago, the index jumped by $21.25/mt cfr. 
  • On active demand, the daily Davis Index for UAE-origin HMS 1&2 (80:20), Friday cfr Nhava Sheva, rose by $7/mt. From last Friday, the index rose by $25/mt. 
  • The daily index for US-origin HMS 1&2 (80:20) cfr Nhava Sheva was up by $3.75/mt. Bids for turning scrap were up by $10/mt from a week ago.
  • From a week ago, the indexes for P&S and #1 busheling were up by $20/mt cfr Nhava Sheva.
  • Effective April, with the beginning of the new financial year, mills hiked flat steel prices by Rs2,500-3,000/mt while long steel prices increased by Rs1,500-2,000/mt. 
  • Steel demand would remain healthy for two months ahead of monsoon season, encouraging importers to secure more ferrous scrap, believe market participants. 
  • The Chinese government has reiterated its plan to ensure that crude steel output drops in 2021. There is an ongoing nationwide investigation to track the adherence to supply-side reforms from 2016. ($1=Rs72.49)

 

India domestic

  • Prices for domestic HMS 1&2 (80:20) rose this week amid low availability. Demand from the mills remained firm and is expected to rise further in the near term. The Davis Index for HMS 1&2 (80:20) rose by Rs1,000/mt ($13.6/mt) del Mandi Gobindgarh from Tuesday. 
  • Rising freight costs have increased the landed cost for imported material in India. Thus domestic scrap suppliers in Mumbai also raised their offers for the domestic ferrous scrap. The daily Davis index for HMS 1&2 (80:20) rose by Rs1,000/mt del Mumbai mills from Tuesday.
  • In Chennai, the bi-weekly index for HMS 1&2 (80:20) rose by Rs1,125/mt del Chennai mills from Tuesday.
  • In the eastern part of India, demand for finished steel was firm. A scarcity of material drove the bi-weekly index for HMS 1&2 (80:20) up by Rs400/mt del Durgapur mills.

 

Pakistan  

  • Pakistani ferrous scrap prices jumped by $20-25/mt from last week amid active trading. Steelmakers looked to restock inventories ahead of Ramadan. 
  • A rise in domestic scrap prices and appreciation of the Pakistani rupee hitting a one-year high against the US dollar also boosted appetite for imported scrap.
  • The Davis Index for containerized shredded, Friday, cfr Port Qasim was up $10/mt from Thursday. Mills bought shredded actively from the EU and UK, pushing the index up by $24.29/mt from the prior week. 
  • A resurgence of COVID-19 hit the pace of construction activities at government projects and improvements in cash flows. 
  • The daily index for US-origin HMS 1&2 (80:20), Friday, cfr Port Qasim, up by $7.5/mt from Thursday and $15/mt from last Friday. 
  • The Davis Index for UAE-origin HMS 1&2 (80:20) cfr Port Qasim was up by $10/mt from Thursday and $25/mt from last Friday. There is a shortage of materials due to active domestic demand in the UAE.
  • The Davis Indexes for P&S 5ft and #1 busheling were up by $20/mt from the prior Friday. Sellers are struggling with the non-availability of containers and margin squeeze due to higher freight rates.
  • From last week, the index for domestic Bala billet rose by over PKR1,750/mt ex-works. The Davis Index for G-60 billet was up PKR3,000/mt ex-works Punjab. 
  • Following a rebar price hike by Punjab-based steel mill by PKR2,000/mt, others are likely to follow suit on increased imported scrap prices. The weekly Davis Index for rebar rose by PKR1,250/mt ex-works Karachi and PKR1,750/mt ex-works Punjab. 
  • On rising demand, the weekly index for Art Q toke scrap equivalent to a mix of HMS and P&S, Friday, was up by PKR1,000/mt ($6/mt) ex-yard Lahore. The weekly index for Pure Q toke scrap equivalent to shredded was up PKR500/mt. Limited availability of imported scrap offers amid shipping line issues drove domestic scrap trades. ($1=PKR153.21)

 

Bangladesh

  • Bangladeshi steel mills limited purchases as offers surged in a short span. Post freight hikes effective April, most buyers increased bids to secure material. 
  • The Davis indexes for P&S and #1 busheling, Friday, were up by $17/mt and $20/mt, respectively cfr Chattogram from the prior week. Offers jumped on the possibility of tightening industrial generation due to the shutdown of auto plants amid chip shortages. 
  • The daily Davis Index for containerized shredded, Friday, cfr Chattogram, up by $3.04/mt. The index rose by $13.25/mt from the prior week. A sharp spike in COVID-19 cases has alarmed many mills and dampened sentiment.
  • Indian Sponge iron export offers surged by $25-30/mt from a week earlier on tight supply and active domestic demand. 
  • The daily index for HMS 1&2 (80:20) from Latin America cfr Chattogram, was up by $6/mt. From the prior Friday, the index jumped by $17/mt. 
  • Higher steel prices met resistance as many end-users expect slow demand during Ramadan and monsoons. 
  • The weekly index for ship scrap equivalent to P&S inched up by BDT500/mt ex-yards. 
  • The index for domestic billets dropped marginally by BDT875/mt as mills reduced offers to encourage trades and liquidated stocks. Southeast Asian billet offers rose $20-30/mt amid high freight charges and bullish Chinese demand. 
  • On higher imported scrap prices, large steelmakers held rebar asking rates at higher levels. The index for large steelmakers’ rebar, Friday, increased by BDT1,375/mt ex-works. The index for rebar from medium-scale mills in Dhaka was up by BDT500/mt. ($1=BDT84.72)

 

Metallics

 

US/CIS 

  • The weekly Davis Index for basic pig iron (BPI) cfr New Orleans slipped by $2/mt on Friday following sales activity into the US, China, Italy, and Turkey.
  • A month-long silence in metallics trade was finally broken this week when two south Brazil producers bowed to market pressure and accepted high-phosphorous BPI sales into the US at fob Brazil prices of $500/mt on Monday, followed by a sale at $510/mt fob on Tuesday.
  • China was quick to react and booked a large pig iron cargo out of East Russia at $550/mt cfr, or $530/mt fob, at a time when previous offers were at least $10/mt higher. 
  • Other pig iron producers in Russia and Ukraine refused to lower prices and by Friday, bid-offer levels to China had passed $560/mt cfr.
  • Italy and Turkey also booked several 5,000-7,000-mt sized vessels this week at price levels of $567-568/mt cfr Italy and $445-450/mt fob Black Sea port.
  • Domestic prime scrap is extremely tight in the US, steel output is soaring, and domestic prices for prime grades are expected to rise in April, which has led pig iron producers and traders to become extremely bullish on pig iron. 
  • Spot pig iron trade by barge out of New Orleans hit the $575/mt price level this week and new offers have already surged past that level.
  • This plays into sellers’ hands as they know mills will not want to get caught short on metallics when primes are tight and raw metal spreads are at all-time highs.
  • Some buyers have said they will push to curb momentum and hope to keep prices steady if they fail to book material at prices below $560/mt cfr Nola.
  • The Davis Index for nodular pig iron (NPI) imports remain unchanged at Nola. 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 levels just under the range.
  • The weekly Davis Index for US hot briquetted iron (HBI) imports stayed 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 most recent consumer interest levels.
  • The weekly Davis Index for BPI fob Black Sea port was down by $4/mt from the prior week and the weekly index for pig iron cif Italy stayed unchanged.

 

India

  • Sponge iron prices rose by Rs700-1000/mt ($9.5-13.6/mt) through the week amid a rise in input cost and firm demand from the secondary steel makers.
  • The Davis Index for Sponge iron rose by Rs700/mt del Mumbai mills, Rs1,350/mt del Chennai mills, and Rs300/mt del Durgapur from Tuesday.
  • Due to the scarcity of scrap, mills preferred Sponge iron supporting sellers to raise offers.

India semi-finished and finished steel

  • The Davis Index for billet in Mumbai increased by Rs2,000/mt ($27/mt) ex-works from last Friday, while rebar prices were up by Rs1,500/mt ($20/mt).
  • In Raipur, the index for billet increased by Rs2,500/mt ($34/mt) ex-works from the previous Friday due to a rise in inputs costs, particularly on account of increased sponge iron prices. The daily index for rebar was up by Rs2,300/mt ($31/mt).
  • In Mandi Gobindgarh, the index up by Rs2,300/mt ex-works from the previous Friday amid a rise in local scrap prices.
  • In Chennai, the index for billet was up by Rs500/mt ($7/mt) ex-works on Thursday from a week ago following a rise in rebar prices. 

 

Shipbreaking 

  • Shipbreaking scrap prices were mixed this week ahead of the financial year closing on March 31. Steelmakers bought shipbreaking scrap only on a need basis. But yards in Alang are running short of supply. 
  • The index for HMS attachments and Melting declined by Rs200/mt ($2.72/mt) ex-Alang on Friday from March 30.
  • Traders ended their strike in Mandi Gobindgarh, and shipbreakers increased their offers for rolling scrap mid-week. The index for 6Ani rose by Rs700/mt ex-Alang. 
  • The index for 5kg plates rose by Rs800/mt ex-Alang and market participants with expectations of a further rise in the coming days. ($1=Rs72.51)

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