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

Menu

Ferrous market update: May 24-28

Ferrous Market Update 05/28/2021

 

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) decreased by $4.36/mt on Friday after a new sale was reported.
  • A Marmara-based mill was heard to have purchased HMS 1&2 (80:20) at $502-503/mt cfr and shredded scrap at $512-513/mt cfr from a US supplier on Friday.
  • Demand for the imported ferrous scrap was sluggish in Turkey during the week, though some mills from Marmara, Iskenderun, and Karadeniz regions were looking for cargoes today. Still, bids were heard at $500/mt cfr or below for HMS 1&2 (80:20) from the USA and the Baltic region, while the lowest offers were reported at $505/mt cfr.
  • Sporadic transactions were also heard in the Azov-Black Sea basin, including a sale from Rostov-on-Don to Turkey at $487/mt cfr for A3 material.
  • Spot rebar prices in the Turkish domestic market were flat on Friday. Icdas raised its local rebar prices by TRY150/mt for ex-works Biga and ex-works Istanbul amid currency fluctuations, while Bastug Metalurji kept them unchanged. All domestic prices include 18pc VAT. ($1 = TRY8.58)

 

Turkey domestic

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey inched up by TRY4/mt on Monday after only one mill raised its purchase price.
  • Purchase prices for shipbreaking scrap in the Izmir region rose by $20/mt over the week amid solid demand. ($1=TRY8.40)

     

CIS

  • The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap increased by $10/mt in the Baltic Sea and by $3/mt in the Black Sea on Monday amid further bookings.
  • Russian ferrous scrap exporters sold several cargoes last week at higher prices on strong demand from Turkey. A St Petersburg supplier closed a deal at $510/mt cfr Turkey in the middle of last week, while two other recyclers from the same area had sold the material at $506.50/mt and at $507/mt cfr, respectively. An exporter from Rostov-on-Don sold A3 at $495/mt cfr Turkey.
  • Collection prices for ferrous scrap rose in Russia due to an uptrend in the export market. Thus, the weekly Davis Index for A3 scrap increased by RUB1,150/mt in St Petersburg dock and by RUB1,075/mt in Rostov-on-Don dock. ($1 = RUB73.45)

 

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region was unchanged delivered dockside on Tuesday in an inactive export market.
  • Collection prices for ferrous scrap were flat in the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) in a quiet market after Turkish mills stepped back. 
  • Muted trading narrowed the price range for HMS 1&2 (75:25) to €355-360/mt delivered compared to €350-365/mt delivered a week ago. Some recyclers are also considering a decline in collection prices in the near term due to softer demand from Turkey.
  • The European ferrous scrap export market reached a peak late last week after a Belgian supplier sold 19,000mt of HMS 1&2 (80:20), 11,000mt of shredded scrap, 8,000mt of bonus material, and 2,000mt of busheling to Turkey at an average price of $516/mt cfr.
  • The weekly Davis Indexes for HMS 1 and bonus scrap in the ARAG region were unchanged on Tuesday. (€1=$1.23)

 

UK dockside

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices edged £2-3/mt ($3-4/mt) higher delivered dockside, on Tuesday.
  • UK dockside ferrous scrap purchase prices increased over the past week, with prices varying wildly based on bulk exporters.
  • A large UK-based bulk processor was heard to have raised rates for HMS 1&2 (80:20) up to a maximum of £285-288/mt for large parcels. Market participants hypothesized that this company was either urgently acquiring volumes to fill a vessel or trying to squeeze competitors out of the market.  
  • By contrast, another large UK-based ferrous scrap exporter was heard to have rolled over prices from last week at the lower end of the range for heavy melt at £255-265/mt.
  • Ferrous scrap prices on major seaborne trade routes, particularly to Turkey, have been relatively lackluster of the past week, with the market waiting for clear direction and momentum.
  • Davis Index’ Turkish HMS 1&2 (80:20) ferrous scrap import benchmark climbed by only $8/mt cfr Turkey on May 24 from May 17.
  • The weekly indices for north and south UK OA (Plate & Structural) climbed by £3/mt delivered dockside, respectively, and north and south UK 5A/5C (frag feed) ferrous scrap indices were unchanged. (£1=$1.42)

 

 

Spain 

  • Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk weekly ferrous scrap indices declined by €7/mt ($9/mt) on Friday.
  • The last recorded ferrous scrap sale to Spain was concluded with a UK-based supplier on Wednesday at unchanged levels compared with the prior week cfr northern Spain for HMS 1&2 (80:20).
  • Since Tuesday, Spanish bids for new small bulk cargoes have plunged by €10-15/mt to reflect the current ebb in competing hot metal production costs.
  • A UK-based ferrous scrap exporter commented that they were unable to accept lower bids at this time given that dockside rates would have to come down first to protect their margin. 

Another supplier scoffed at the new levels, saying it was not workable given that major processors had booked deepsea HMS 1&2 (80:20) sales to Turkey at $510/mt cfr and now have vessels to fill.

  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices declined by €5-6/mt fob, respectively, during the week. (€1 = $1.22)

 

US dockside

  • US East Coast and Houston dock collection prices for ferrous scrap were rangebound on Tuesday with only small movements this week in tandem with export activity. This follows three weeks of rising price trends of varying levels like export gains along with rising domestic market strength.
  • The Davis Index for US HMS 1&2 (80:20) exports to Turkey have increased by $8.19/mt since last week on slowing activity for the second successive week. The index for the grade stands at $513.19/mt cfr on Tuesday compared to $505/mt cfr on May 18. The longer term, monthly gain increased by $80.06/mt compared to $433.13/mt cfr for the export grade on April 27.
  • Dockside sales for #1 HMS on the East Coast trended between $365-400/gt on Tuesday based on dock location and base price from prior sales. Boston docks are closer to the bottom end of the range for the grade, though they are up $5-10/gt since last week and closing in on the gap with New York and Philadelphia docks that are rangebound at $380-400/gt.
  • Market participants noted that some anticipated increases have been delayed as various bulk export sellers continue filling older, lower-priced orders. Large-volume #1 HMS deals start at $400/gt and are soon projected to reach $425/gt or more.
  • In Boston, the weekly Davis Index for export yard #1 HMS increased by $8/gt and rose by $9/gt for P&S 5ft delivered Boston dock. Shredder feed was flat delivered Boston export yard. 
  • The weekly Davis Index for export yard buying prices in New York ticked up by $3/gt for #1 HMS delivered and P&S 5ft rose by $2/gt. Shredder feed held flat delivered New York dock. 
  • In Philadelphia, the Davis Index for export yard collection prices were unchanged with #1 HMS, P&S 5ft and shredder feed remaining at last week’s levels. 
  • The small movements at East Coast dock locations follow last week’s gains of $10-20/gt.
  • In Houston, the weekly Davis Index inched up by $2/gt for #1 HMS delivered and moved up by $3/gt for both P&S 5ft and shredder feed delivered Houston dock, respectively. Houston docks have been mostly flat for the past two weeks with many sellers more focused on the upcoming June domestic scrap trade.
  • US West Coast dock prices were mostly rangebound on the West Coast as more sellers obtained the slightly higher prices within the existing ranges. 
  • The Turkish Davis Index for US-origin HMS 1&2 (80:20) rose by $8.19/mt to $513.19/mt cfr Turkey today compared to 505/mt cfr on May 18. The index has climbed by $92.84/mt over the past four weeks. US exporter offers are at $530-550/mt cfr with a recent US deal off NOLA for HMS 1&2 (95:5) at $515/mt cfr Turkey. Market participants are noting a slight slowdown in Asia. It is believed that scrap has hit a peak and deals could be finalized at lower prices in early June. 
  • US domestic scrap’s outlook continues to remain positive for June. Exporters needing to fulfill orders are therefore maintaining dock prices at strong levels to compete with domestic mills. 
  • EU dock prices are trending flat after rising in the prior week while UK dock prices increased only by $3-4/mt against last week’s levels. 
  • Domestic scrap prices in Asia remain strong but South Korean and Taiwanese mills have lowered bids for Japanese scrap. Recent bulk and container deals ex-Japan have trended down by $5-6/mt against similar trades a week ago.
  • Indian domestic ferrous scrap prices fell allowing importers to negotiate lower import buying prices. The same trend is evident in Bangladesh, China, Pakistan, and South Korea. Spot iron ore prices are likely to remain firm and will provide support to ferrous prices. 
  • The weekly Davis Indexes in Portland for export yard scrap trended unchanged this week after rising by $6-9/gt in the prior week. The indexes were unchanged for #1 HMS, P&S 5ft and shredder feed. 
  • In San Francisco, the Davis Indexes rose by $2/gt for #1 HMS, P&S 5ft, and shredder feed after rising $16-17/gt the prior week. 
  • In Los Angeles, the indexes were mixed after trending flat last week with #1 HMS unchanged, P&S 5ft rising by $3/gt and shredder feed up by $7/gt delivered. Docks increased prices for some sellers but within the established range. Given the export softness over the week, the price increase announcements are unlikely according to sources

 

 

US containers

  • US containerized ferrous scrap prices trended down on the West Coast on Thursday following the trend on East Coast where prices fell for the second successive week. 
  • A few buyers began to place lower bids while others preferred to wait until next week. Sellers though noted transactions ranging from slightly lower to sideways depending on deal details. 
  • Spreads between HMS 1&2 (80:20), and P&S 5ft and shredded continue to remain wide at around $30-40/mt on the West Coast. 
  • Buyers from Taiwan, Vietnam, and South Korea, are noting a rise in COVID-19 cases that is causing uncertainty at mills, which has the potential of a negative effect on finished steel demand if the cases spiral, with domestic scrap prices declining in those countries over the past week. 
  • Containerized ferrous buyers may achieve another downtrend of $5-10/gt next week but prices are likely to bottom out given the strength of the US domestic scrap market, tight global inventories for export, to-date domestic demand in each of the buying markets, and their need for imported material. 
  • US domestic scrap in June is anticipated to trend up by $50-70/gt on shredded scrap against May settled prices, which could see shredded prices exceeding $500/gt delivered. Depending on the starting point of May’s transactions, some market participants on the East Coast and in the Southeast noted the potential for shredded to trend at $510-520/gt delivered. 
  • Japanese scrap offers have softened. This week Tokyo Steel kept ferrous scrap purchase bids unchanged, but next week its activity could provide more market information. 
  • Domestic scrap prices, as well as import offers from other sources competing with the US, have softened in India. Buyers are relating weaker sales to domestic uncertainty, vagueness from China, and cash flow challenges at firms. Chinese and other metals markets are showing resiliency, though, late in the week and adding to an overall positive sentiment despite unknown factors. 
  • The weekly Davis Indexes in New York rose by $3/mt fas for #1 busheling but other indexes fell on softer bids. HMS 1&2 (80:20), P&S 5ft, and shredded dropped by $2/mt fas and machine turnings declined by $1/mt. 
  • The weekly Los Angeles containerized scrap indexes fell this week with #1 busheling dropping by 4/mt, P&S 5ft by $5/mt, and shredded by $6/mt fas. HMS 1&2 (80:20) decreased by $8/mt fas. 
  • In San Francisco, the weekly indexes for #1 busheling and P&S 5ft, fell by $3/mt, respectively. HMS 1&2 (80:20) decreased by $8/mt while shredded dropped by $4/mt fas.

 

Mexico

  • Mexico’s domestic ferrous scrap price indexes trended mostly sideways to up on Friday amid continued strong domestic demand and long lead times at mills that are requiring strong capacity utilization levels. 
  • Continued tight scrap inventories, exported scrap loads, and several mills in the Northern region reached into Bajio for volumes. Most of the scrap increases are expected in the first week of June once the US domestic scrap trades and the export markets gain some clarity.
  • There is an expectation of the US scrap market in Texas trading up $30-40/gt against May settled prices though, some other US regions could trade higher.
  • The US-origin HMS 1&2 (80:20) index fell by $10.88/mt cfr Turkey on Friday against May 21 but was still over $50/mt against May 3.  Following the US and global dynamics, Mexico’s rebar and HRC prices are at record highs and are also facing long lead times.
  • The country also has some tariffs and AD/CVD tariffs on importers which are limiting unfair trading price levels into the domestic market. 
  • In North Mexico, most prices trended sideways, but some indexes changed as buys varied. One buyer noted a large price variation when buying for smaller scrap sellers versus larger dealers. Large mill buyers noted a focus on buying from smaller scrap yards as dealers and industrial producers with large, guaranteed volumes were offered at a premium price and some were selecting to export the scrap or sell into other regions.
  • The weekly Davis Index in North Mexico for #1 HMS fell by MXN64 delivered and P&S 5ft dropped by MXN115/mt. Shredded remained unchanged. Machine shop turnings moved down by MXN67/mt delivered while #1 busheling encountered a sharper fall of MXN449/mt given higher sales included in the previous week.
  • The weekly Davis Indexes in Bajío for #1 HMS and shredded were unchanged. P&S 5ft increased by MXN200/mt delivered as machine shop turnings climbed by MXN100/mt and #1 busheling gained MXN75/mt to MXN11,013/mt delivered.
  • In Central Mexico, the weekly Davis Indexes were unchanged for #1HMS, machine turnings, shredded, and #1 busheling. P&S5ft rose by $25/mt to MXN10,525/mt. ($1=MXN19.92)

Japan  

  • Japanese EAF steelmaker Tokyo Steel has kept its finished steel prices unchanged since last week’s revision. While bids for #2 HMS at JPY51,500/mt delivered Tahara works, JPY50,000/mt delivered Okayama and Kyushu, JPY48,000/mt delivered Utsunomiya, and JPY48,500/mt delivered Takamatsu. 
  • Scrap supply continues to be tight in Japan, but global demand has softened weigh down prices.
  • The weekly index for #2 HMS, Wednesday, dropped by JPY3,500/mt ($31.87/mt) fob Japan and fas Japan.
  • The weekly index for P&S 5ft (small bulk) China port fell $15/mt on lower offers. Buyers’ expectations for small bulk cargoes of P&S dropped to $540-545/mt cfr China on Wednesday. 
  • In the Chinese market, domestic scrap fell by CNY600/mt as Shagang Steel-cut prices for the eighth time since May 18. 
  • The weekly index for #1 busheling (Shindahi) dipped by JPY4,000/mt fob Japan. On a fas basis, the index rose JPY4,750/mt fas Japan. 
  • The weekly Davis Indexes for shredded and HS, Wednesday, dropped by JPY3,000/mt and JPY3,500 fas Japan, respectively, amid limited deals. 
  • Offers for Japanese HMS 1&2 (50:50) at 510-515/mt cfr Vietnam declined $8/mt.
  • The index for Japanese HMS 1&2 (50:50), Wednesday, dropped by $10/mt cfr Taiwan. Most offers fell to $485-490/mt cfr against bids of $470-475/mt cfr Taiwan from last week. ($1 = JPY109.83)

 

South Korea  

  • South Korean mills lowered bids for Japanese #2 HMS by JPY1,000-2,000/mt fob ($9-18/mt) Japan on Tuesday. Offers for #2 HMS, Wednesday, dipped JPY3,500/mt fas from the prior week. 
  • Buying of domestic scrap by major steelmakers lifted the weekly Davis Index for domestic Heavy A, Tuesday, by KRW37,500/m ($33.66/mt) delivered Incheon and Pohang mills. The weekly Davis Index for domestic Light A went up by KRW52,500/mt ($47.12) delivered Pohang. 
  • Hyundai Steel bought limited volumes at JPY49,000/mt fob last Friday. Increased supply and reluctant buying could lower scrap price in the coming days, traders said.
  • The steelmaker also booked 35,000mt of A3 scrap from Russia at $499/mt cfr South Korea, $6/mt lower from the prior week’s trade. 
  • The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, fell $20/mt. Mills were unwilling to accept prices above $450-460/mt cfr South Korea for containerized HMS 1&2 (80:20) amid easing domestic supply. 
  • The weekly Davis index for P&S 5ft, Wednesday, dipped $20/mt cfr South Korea, while the index for #1 HMS and shredded dropped by $20/mt and $5/mt, respectively.
  • South Korean mills continued to stay away from bulk purchases from Russia, Japan, and the US West Coast this week. ($1 = KRW1114.12)

 

Taiwan  

  • Imported ferrous scrap offers to Taiwan dipped on Turkish cues. Freight rates and softened steel demand also played a role in reducing prices. 
  • The weekly Davis Index for containerized US-origin HMS 1&2 (80:20), Wednesday fell by $20/mt. On Wednesday, most offers were in the range of $460-475/mt cfr Taiwan with deals at $476-480/mt cfr Taiwan.
  • Feng Hsin lowered its scrap procurement prices by TWD500/mt for busheling and turnings while TWD300/mt for all the other grades, effective May 28. 
  • Offers for Southeast and East Asian billet reduced by $30. While Indonesian billet offers to Taiwan fell by $35 on May 20. 
  • The weekly Davis Index for containerized #1 HMS dropped by $20/mt Taiwan port whereas the index for shredded was down by $20/mt.
  • Demand continued to be under pressure in Taiwan, which could lead to a further drop in prices. The indexes for P&S 5ft fell $20/mt while #1 bushelling dipped by $20/mt. ($1=TWD27.95)

 

China

  • Chinese scrap prices dropped driven by the government intervention that hampered market sentiment. China’s National Development and Reform Commission resolved to strengthen price controls of key commodities in its 14th five-year plan (2021-2025). Inspections and penalty on steelmakers indulging in hoarding and price speculation are part of the action plan.
  • Domestic scrap fell by CNY600/mt as Shagang Steel-cut prices for the eighth time since May 18. 
  • The steelmakers’ buying prices fell by CNY170/mt ($26.70) on May 24 at all works. The weekly Davis Index for the HMS (80:20) dropped by CNY430/mt ($67.55) delivered mill.
  • Chinese domestic billet prices, Tuesday, rose by CNY20/mt while billet prices dropped by 14.4pc from the record high on May 12.
  • Spot iron ore prices for 62pc Fe marginally moved up $3.3/mt on Tuesday. Amid falling inventories and optimism on sustaining demand, prices are likely to stay firm. Spot steel prices dropped through the week but recovered on Friday.
  • China’s key steelmakers’ daily average crude steel production dipped by 1.59pc, which could be attributed to lower export rebates and cooling-off of steel prices. ($1 = CNY6.37)

 

Vietnam 

  • The weekly Davis Index for HMS 1&2 (80:20) in Vietnam remained unchanged delivered Southern mill. Mills who were largely away from imported ferrous scrap trades last week could resume bookings by paying $25-30/mt higher than prior deals, believe traders. 
  • In the container market, offers for FEUs of HMS 1&2 (80:20) showed a marginal drop in the range of $475-480/mt cfr Vietnam. Vietnamese EAF makers have decided to stay away from ferrous scrap purchases on weak demand.
  • The weekly Davis index for containerized #1 HMS, Thursday, dropped by $19/mt. Shredded, P&S 5ft and #1 bushelling dropped by $18/mt, $19/mt, and $19/mt, respectively. Offers for US-origin HMS 1&2 (80:20) dipped $19/mt from last Thursday. 
  • Steel prices are pressurized by a fall in billet and scrap prices amid wet weather. Mills are struggling to secure their margins and keep prices steady. ($1=VND23,056)

 

Indonesia

  • The weekly index for P&S 5ft dropped by $17/mt cfr Indonesia port. The Davis Index for shredded decreased by $17/mt cfr Indonesia port. Offers for P&S 5ft in the range of $495-$505/mt. 
  • Steelmakers are likely to stay away from imports and focus on the lower-priced domestic scrap to maintain margins in the coming days. 

 

Thailand

  • The weekly Davis index for domestic HMS 1&2 (80:20) delivered Rayong mill remained unchanged from the prior week. Thai mills focused on domestic scrap amid increasing COVID-19 cases. The gap between domestic and imported scrap has widened after offers for HMS 1&2 (80:20) heard at $450-46/mt cfr Thailand. ($1=THB31.38)

 

Malaysia 

  • The weekly Davis Index for HMS 1&2 (80:20) remained unchanged delivered eastern mill and western mill. Malaysia is under a tight lockdown.
  • Malaysia’s automobile sales volume in April fell by 12.3pc from March, states a release from the Malaysian Automotive Association.  ($1=MYR4.14)

 

India 

  • Ferrous scrap buyers in India lead the resistance to high offers along with their subcontinental counterparts. Lower bids by Indian importers pressurized UAE-based suppliers to reduce offer prices. 
  • The daily Davis Index for UAE-origin HMS 1&2 (80:20), Friday, cfr Nhava Sheva, was down $3/mt. On a weekly basis, the index dropped by $20/mt in line with a fell in rebar prices.
  • The Davis Index for containerized shredded, Friday, declined $2.11/mt from Thursday. From the prior Friday, the index for containerized shredded dropped by $6.64/mt as more and more buyers lowered bids pressurized by a fall in steel prices in Asia. 
  • Multiple warnings from the Chinese government on price speculation lowered billet export prices discouraging importers to make fresh scrap bookings this week.
  • The index for US-origin HMS 1&2 (80:20), Friday, cfr Nhava Sheva, down $2/mt as bids dropped owing to inactive trades. 
  • The daily Davis Index for containerized shredded, Friday, down by $0.08/mt; while that for containerized US-origin HMS 1&2 (80:20) down $1.64/mt on Friday. ($1=Rs73.1)

 

India domestic

  • Ferrous scrap prices declined in Mumbai, while they recovered in Mandi Gobindgarh late in the week. The daily Davis Index for HMS 1&2(80:20), Friday, declined by Rs1,400/mt ($19/mt) del Mumbai mills from the previous week. Mills bought on a need basis as demand from the end-users failed to pick up.
  • Supply of scrap remained tight in the North, but late in the week, domestic sentiments improved on the back of global cues. The daily Davis index for HMS 1&2 (80:20) rose by Rs400/mt del Mandi Gobindgarh.

Pakistan  

  • Pakistani ferrous scrap importers turned a bit optimistic on Friday, after an uptick in Chinese steel prices. Market participants expect a rebound in scrap prices. Buyers may return if prices pick pace, traders said. 
  • The daily Davis Index for containerized shredded, cfr Port Qasim, Friday, fell $6.5/mt from the prior Friday. Offers dropped to $505-510/mt cfr Qasim but suppliers are largely silent. A few deals heard at $510-512/mt cfr Qasim early in the week.
  • Domestic demand failed to encourage more restocking and mills are still limiting their purchases to immediate melt requirements.
  • The daily Davis Index for UAE-origin HMS 1&2 (80:20), Friday, slipped $22/mt from last Friday. Offers for UAE-origin mixed #1 HMS and P&S dropped driven by lower bids by Indian buyers.
  • The daily index for US-origin HMS 1&2 (80:20), Friday, dropped by $23.6/mt from the prior Friday. 
  • The Davis Index for P&S 5ft and #1 busheling, fell $6/mt cfr Port Qasim from the prior Friday as offers for high-grade scrap remained firm amid tight supply. 
  • In the domestic market, steel trades remained slow but high input costs spiked asking rates. The index for domestic Bala billet rose by PKR3,500/mt ex-works. The weekly Davis Index for G-60 billet rose PKR6,500/mt ex-works Punjab from prior Friday.
  • Local rebar offered at PKR131,000/mt ex-works, with prices moving up by PKR1,000/mt from the prior week. The weekly Davis Indexes for rebar increased PKR250/mt ex-works Karachi and up PKR5,000/mt ex-works Punjab. 
  • Domestic ferrous scrap supply remained tight. The weekly indexes for Art Q toke and Pure Q toke, Friday, increased PKR4,000/mt, respectively. ($1=PKR155.09)

 

Bangladesh

  • Bangladeshi ferrous scrap trades remained slow due to the national lockdown to check the spread of the COVID-19 pandemic. Some market participants expect domestic steel prices to come under pressure amid the impending arrival of monsoon and limited liquidity with small- and medium-scale steelmakers.
  • The Davis Index for containerized shredded, Friday fell by $9.25/mt from the prior week. Offers for containerized shredded from UK/EU-yards firm at $495-505/mt cfr Chattogram with limited buying. Bids declined by around $10/mt on Friday compared to early in the week.
  • Suppliers focused on bulk inquiries due to a shortage of empty containers. Mills resisted bulk HMS 1&2 (80:20) offered at $510/mt cfr Chattogram amid sluggish domestic steel demand.
  • The Davis Indexes for P&S and #1 busheling cfr Chattogram, Friday, dropped $12/mt and $8/mt, respectively, from the prior Friday. On Friday, offers for the UK-origin P&S in containers were above $540-550/mt cfr.
  • The daily Davis Index for HMS 1 &2 (80:20) from Latin America, Friday, fell $12/mt from prior Friday. Trades for the grade reported at $490-493/mt cfr Chattogram while for #1 HMS offers from Latin America firm above $503/mt cfr Chattogram.
  • The indexes for US-origin containerized HMS 1&2 (80:20) fell by $2mt, UK-origin dropped $10/mt and Australia-origin declined by $8/mt from May 21.
  • Many deals for HMS 1&2 (80:20) heard at $490-510/mt cfr Chattogram depending on the origin. 
  • The weekly index for ship scrap equivalent to P&S, Friday, rose $6.44/mt while the index for domestic HMS 1&2 (80:20) was unchanged ex-yard Chattogram.
  • Trades for heavy melt scrap bundles reported at BDT44,500-45,000/mt ex-yards. The weekly index for billet remained unchanged. Limited trades heard at BDT61,500-62,000/mt ex-works. Offers for 16mm ship plates at BDT55,000-55,500/mt ex-yards.
  • Rebar sales continued to disappoint large steelmakers who sought to hike prices further amid high input costs. 
  • Post Eid holidays, large-scale steelmakers have hiked rebar prices by BDT250-1,000/mt ($2.95-11.80/mt) to BDT63,000-73,500/mt ex-works. The weekly index for rebar from large-scale mills rose BDT1,000/mt ex-works. The weekly indexes for rebar by medium and small-scale mills remained unchanged. ($1=BDT84.72)

 

Metallics

US/CIS

  • The weekly Davis Index for basic pig iron (BPI) fell by $29/mt in the New Orleans port on Friday following fresh transactions at lower prices from Russia and Ukraine. The weekly Davis Index for CIS BPI dropped by $23/mt in the Black Sea basin.
  • A few new US BPI import deals for around 50,000mt each have transpired since mid-week. These deals originated in Russia and the Ukraine at $665/mt cfr Nola. The new exchanges follow last week’s raised offer levels, some as high as $730/mt cfr Nola that did not result in transactions in the USA, though a Ukrainian supplier sold a cargo to Canada at $730/mt cfr.
  • Sources expect the US pig iron import market to temper until domestic scrap trading commences or settles next week, but some CIS exporters are trying to negotiate for better prices.
  • The Davis Index for nodular pig iron (NPI) imports dropped by $30/mt in Nola. The material remains in limited supply with offers involving July or later shipment. The latest offers for NPI this week are at $710-730/mt cfr Nola with bids just under, compared to last week’s level at $750-780/mt cfr Nola.
  • US hot briquetted iron (HBI) imports decreased by $7/mt in Nola.
  • The weekly Davis Index for CIS pig iron in Italy dropped by $20/mt on Friday amid lower prices at alternative outlets and slow negotiations in Italy.

India

  • The index for sponge iron declined by Rs2,500/mt del Mumbai mills while in Mandi Gobindgarh the index fell by Rs200/mt del mills as mills followed a wait-and-watch approach amid weak demand from end-users. ($1=Rs72.5)

 

India semi-finished and finished steel

  • Amid subdued demand, the daily Davis Index for billet in Mumbai fell by Rs1,800/mt ($25/mt) ex-works tracking a fall in rebar prices. The index for rebar fell Rs1,200/mt ($17/mt) ex-works on lower sales as the city remains under COVID-related lockdown.
  • In Raipur, the daily index for billet drops by Rs1,000/mt ($14/mt) ex-works from the previous Thursday amid limited buyers’ interest due to uncertain market conditions. The index for rebar was down by Rs500/mt ($7/mt) ex-works due to slow demand.
  • Ingot index for Mandi Gobindgarh declined by Rs200/mt ($3/mt) ex-works from the previous Friday. ($1=Rs72.49) 

 

Shipbreaking 

  • Shipbreaking scrap prices declined for the second consecutive week amid low demand from rolling mills as production remained hampered due to a shortage of oxygen cylinders. Diversion of industrial oxygen for medical purposes continues as India’s healthcare system battles the COVID-19 pandemic.
  • The daily Davis Index for HMS attachments and Melting, Friday, declined by Rs2,500/mt ($34.49/mt) ex-Alang from the prior week.
  • Total tonnages in May fell by 11pc compared to April. Pakistani and Bangladeshi buyers are offering higher prices for scrapped vessels compared to their Indian counterparts.
  • The index for 4Ani declined by Rs1,000/mt ex-Alang from the prior week as demand for ship plates declined due to a slowdown in construction activities. The index for 2kg plates declined by Rs1,300/mt ex-Alang on Friday.

Leave a Reply

Your email address will not be published.