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Ferrous market update: November 16-20

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) increased by $2.29/mt on Friday as bookings continue.
  • Two deals were reported in the Turkish imported ferrous scrap market at the end of the week. An Iskenderun-based mill purchased 35,000mt of shredded scrap at $340/mt cfr from the UK. An Izmir-based mill was heard to have bought HMS 1&2 (80:20) at $329.50/mt cfr from a Dutch supplier, but full details of the transaction were not disclosed.
  • Demand for ferrous scrap remains strong in Turkey amid buoyant steel product sales. As a result, US suppliers are bullish and expect prices for shredded scrap to hit $355-360/mt cfr Turkey soon.
  • The daily exported rebar prices in Turkey increased by $5-10/mt to $500-505/mt fob on Friday. According to market participants, there were some sales within the range to the Middle East and Latin America. Most Turkish mills announced new offers for rebar at $510/mt fob. ($1 = TRY7.62)

 

Turkey domestic

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey declined by TRY16/mt ($2/mt) delivered on Monday. However, mills are divided on their pricing policies depending on their stock at hand.
  • Colakoglu Metalurji, Erdemir, and Mescier have continued buying domestic DKP grade at the same price, since Nov 3-4.
  • Kroman and Diler Demir Celik decreased their purchase price for the same material by TRY50/mt. Isdemir increased it by TRY60/mt and Kardemir raised its purchase price for DKP by TRY30/mt all in delivered terms.
  • Purchase prices for shipbreaking scrap in Izmir rose by $15-20/mt delivered. ($1 = TRY7.74)

 

CIS

  • The weekly Davis Index for HMS 1&2 (80:20) jumped by $26/mt fas Baltic Sea basin and by $14/mt fas Black Sea basin on Monday amid an export market uptrend.
  • The Russian export ferrous scrap market is bullish on strong demand in Turkey and a tight supply of the material. Turkish mills need more scrap after they sold significant tonnages of rebar. As a result, Russian recyclers expect higher prices.
  • Collection prices in Russia rose amid positive sentiment. The weekly Davis Index for HMS 1&2 (80:20) increased by RUB525/mt ($7/mt) delivered St Petersburg dock on Monday and by RUB400/mt ($5/mt) delivered Rostov-on-Don dock. ($1 = RUB76.57)

 

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) surged by €20/mt ($24/mt) delivered ARAG docks on Tuesday due to a global shortage of the material.
  • European ferrous scrap exporters raised collection prices significantly amid limited availability and strong demand for the material in the export market. Besides, deal prices in Turkey increased by around $25/mt over the past week. (€1 = $1.19)

 

UK dockside

  • The weekly Davis Index for north and south UK HMS 1&2 (80:20) ferrous scrap climbed by £6-7/mt ($8-9/mt) delivered dockside on Nov 17 as bulk processors noted a fall in scrap inflows.
  • Since the imposition of a second month-long lockdown on Nov 5, bulk ferrous scrap processors have noted a decline in material inflows to their docks and yards. As a result, major UK exporters have had to raise dockside purchase prices to compete with their peers to secure sufficient volumes.
  • On Monday, a surge in Turkish HMS 1&2 (80:20) ferrous scrap import prices, causing UK bulk ferrous scrap processors to lift dockside benchmarks, enabling them to fill new orders at higher prices.
  • The weekly indexes for north and south UK OA (Plate & Structural) increased by £9/mt higher over the same period, respectively, delivered dockside on Nov 17.
  • Davis Index’s weekly north and south UK 5A/5C (frag feed) ferrous scrap indices climbed by £5/mt delivered dockside. (£1 = $1.33)

 

Germany domestic

  • Davis Index’s monthly German ferrous consumer scrap indices increased on average by €2/mt ($2/mt), depending on grade and location, following the conclusion of mill-yard negotiations in November.
  • German ferrous scrap buyers entered negotiations in November with bids unchanged from transactions in the prior month. However, it soon became apparent that mills had to increase bids to secure volumes in response to reduced domestic availability.
  • Steel mills in North Germany registered larger price hikes compared with smelters in other regions, due to increased competition between domestic and export markets, particularly to Turkey.
  • One German ferrous scrap mill buyer commented that downstream steel consumption from domestic automotive manufacturers had overtaken demand from the local construction industry after the first wave of the COVID-19 pandemic.
  • In the time since official monthly negotiations were concluded, one Germany-based ferrous scrap trader noted that indicative prices have jumped in response to robust export demand and reduced availability of obsolete grades – caused by the country’s partial lockdown.
  • In fact, Davis Index understands that one German smelter who secured small volumes in early November unchanged compared with the prior month had to procure additional material from the “black” (spot) market at €5-15/mt extra (depending on grade).
  • Another German trader noted that some ferrous scrap suppliers, who accepted unchanged prices earlier in the month, were now seeing negative margins, given that they’ve had to pay much higher prices to secure tonnage amid a national shortage of feedstock.

Spain

  • Davis Index’s weekly northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices climbed by €5/mt ($6/mt), respectively, on Friday.
  • Shortsea bulk ferrous scrap suppliers to Spain were unable to push through any price hikes of over the past week, despite significant increases in major seaborne trade routes.
  • Turkish HMS 1&2 (80:20) ferrous scrap import prices have jumped $24/mt over the past week while UK dockside HMS 1&2 dockside purchase prices have lifted £6-7/mt ($8-9/mt) over the same period.
  • UK suppliers chose to offer more cargoes to northern European destinations as well as for trans-shipment on to Turkey.
  • Spanish mills only modestly lifted their official bids which stand approximately €10/mt below offers from the UK and European shortsea ferrous scrap suppliers.
  • Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded jumped by €11/mt compared with the prior week fob. (€1 = $1.19) (£1 = $1.33)

 

US dockside

  • US East Coast and Houston ferrous scrap dock collection prices increased amid strong export activity and firm domestic markets during the week.
  • Dockside prices have risen for the past two weeks after remaining rangebound with only small upticks through most of October. However, collection price increases ticked up slowly compared to the soaring export prices on Tuesday.
  • Export yard buying prices for #1 HMS on the East Coast ranged between $240-250/gt on Tuesday, up $5-10/gt since last week. However, some sellers are hesitant to transact at that level and believe pricing above $250/gt would be more suitable for the grade.
  • Bids from Turkey for US-origin HMS 1&2 (80:20) were at a minimum of $320/mt cfr on Tuesday, up $20/mt from proposal levels near $300/mt one week ago. US exporters are offering the grade at $330/mt cfr amid material tightness and strong demand, which is about $35-40/mt higher than the Oct 27 price levels.
  • In Boston, the weekly Davis Index increased for export yard #1 HMS by $7/gt delivered Boston dock, for P&S 5ft by $8/gt delivered, and for shredder feed by $6/gt delivered.
  • The indexes for export yard buying prices in New York rose by $6/gt delivered for #1 HMS, by $7/gt delivered for P&S 5ft, and by $10/gt delivered for shredder feed.
  • In Philadelphia, the Davis Indexes for export yard collection prices of #1 HMS and P&S 5ft both increased by $5/gt delivered Philadelphia dock. The index for shredder feed climbed by $7/gt delivered.
  • In Houston, the weekly Davis Index climbed by $5/gt delivered for #1 HMS and P&S 5ft. The shredder feed index increased by $3/gt delivered Houston dock.
  • The US West Coast docks remained rangebound on Tuesday after healthy price increases last week.
  • Market participants have noted the tight global scrap supply and strong demand amid the latest Turkey import scrap deals at increasing prices, but they also point to the need to manage exposure.
  • Though scrap inflows are low and demand remains high, market conditions could easily shift by policies beyond anyone’s control due to the growing number of COVID-19 infections making it difficult for scrap dealers to gauge the aspects of the supply chain that can get affected.
  • Due to trade imbalances between Asia and the US, higher freight prices and even transport availability are adding to the variables that scrap sellers are trying to manage.
  • Japanese domestic scrap prices are rising with the latest announcements by Tokyo Steel. The recent Kanto Tetsugen bid increase has also added support for export prices.
  • Bangladeshi, Pakistani, and Indian buyers could continue buying imported scrap despite concerns on domestic sales of finished steel. In India, sponge iron offers are facing higher prices supported by strong iron ore prices, which, in turn, are translating to higher prices on ingots, billet, and rebar. Some traders forecast that bulk prices to Pakistan and Bangladesh may increase by $20-30/mt by January.
  • Taiwan, South Korea, Malaysia, and Thailand have opted for domestic scrap supplies but with increasing imported prices, domestic scrap prices are beginning to rise. Vietnamese mills are reportedly focused on bulk scrap purchases and will continue sourcing from the US at higher prices.
  • The weekly Davis Indexes in Portland, San Francisco, and Los Angeles remained unchanged after last week’s rise on #1 HMS, P&S 5ft, and shredder feed with larger tonnages able to occasionally attract higher prices in quiet deals.
  • Mexican mills are facing an unprecedented reduction in domestic scrap production due to increasing mill demand. Feedstock could increase on higher buying prices under normal circumstances, but several dealers confirmed that peddler activity will remain subdued on pandemic concerns through H1 2021. Therefore, Mexican mills will continue seeking ferrous scrap volumes from the US, which will compete with exports to the Asian markets and domestic mills.

 

US containers

  • US containerized ferrous scrap indices climbed for the sixth consecutive week on strong demand from Asia. A potential uncertainty in freight rates in December could limit the volumes transacted.
  • According to container sellers and buyers to Taiwan, quotes on prior freight rates are not working despite demand as they anticipate freight rates in December could range between $200-1,000/container. Container prices to Taiwan, for example, historically trend on the lower end of that range. Container availability looks difficult into January.
  • Prices have surged since early October on export demand and tight scrap inventories on both coasts. The Davis Index for HMS 1&2 (80:20) has jumped by $37/mt to $286/mt fas Los Angeles since Oct 1, while the New York area HMS 1&2 (80:20) index surged to $302/mt fas on Thursday marking an increase of $47/mt from Oct 1.
  • Bulk and containers scrap on the East Coast were bolstered by higher Turkish import scrap prices, with some sellers forecasting another hefty jump to $345-350/mt cfr given the strong demand for Turkish finished steel.
  • Price expectations for early December US domestic scrap trading week have firmed up from $10-30/gt to $30-50/gt depending on region, mill needs, and grades on tight feedstock flow, short working months at scrap yards, and strong demand at mills.
  • Docks, especially on the East Coast, have also recently increased scrap prices on the expectation of higher bulk and container prices. US docks are heard to be paying premiums above list prices for sufficient tonnage, especially, structural steel that decreased in availability, due to lesser demolition projects.
  • Japanese export scrap offers, an alternative to US-sourced scrap, are also on the rise. Lockdowns in the UK have shrunk feedstock and resulted in increased dock prices. Russia and Latin America are also increasing prices.
  • Central American countries like Nicaragua and Honduras are suffering from unprecedented flooding, which will affect scrap output management in the short-term.
  • Some Indian buyers are waiting on the sidelines wondering whether bulk and container prices have hit the high point with potential correction, but the correction in the short-term is not expected.
  • Given the tight supplies and continued demand, sellers warn that prices could increase or at least remain unchanged through December. The likelihood of increases in the US export market is supported by the expected rise in US domestic prices.
  • Pakistan and Bangladesh buyers are concerned about the second and third waves of the pandemic and near-term direction in finished steel demand should the recovery not continue but are accepting higher import offers on the need for raw material supplies.
  • With potentially sufficient scrap inventories and recent deals for Japanese scrap, South Korean mills have accepted higher offers on containers but on limited volumes.
  • The weekly Davis Indexes in New York rose across all grades for the fifth consecutive week. The indexes for better grades such as #1 busheling increased by $19/mt, P&S 5ft climbed by $26/mt, and shredded rose by $20/mt fas. HMS 1&2 (80:20) increased by $16/mt fas.
  • The Los Angeles Davis Indexes leaped for the sixth consecutive week. The indexes for shredded hiked by $6/mt fas and HMS 1&2 (80:20) increased by $10/mt fas. The Davis Indexes in San Francisco and Seattle also rose $7-11/mt fas depending on grade.

 

Mexico

  • Domestic ferrous scrap prices in Mexico increased for most grades in the Central and Bajío regions amid strong demand for steel.
  • Scrap prices in the Bajío and Central regions could continue to trend up over the next few weeks, with market participants expecting an increase of $30/mt delivered across all grades in December as demand strengthens and supply of the grade remains tight.
  • In North Mexico, the weekly Davis Indexes for HMS 1&2 (80:20) and machine shop turnings were and rose by MXN9/mt delivered Mexico consumer for P&S 5ft, by MXN33/mt for shredded, and by MXN17/mt delivered for #1 busheling.
  • The weekly Davis Indexes in Bajío rose for HMS 1&2 (80:20) by MXN262/mt, for P&S 5ft by MXN578/mt, for shredded by MXN737/mt, for #1 busheling by MXN12/mt all in delivered terms and fell for machine shop turnings by MXN500/mt delivered Mexico consumer.
  • In Central Mexico, the weekly Davis Indexes for P&S 5ft, machine shop turnings, #1busheling, and shredded all increased by MXN150/mt delivered Mexico consumer. HMS 1&2 (80:20) rose by MXN200/mt delivered. ($1=MXN20.09)

 

Japan  

  • A sharp rise in imported scrap prices driven by tight supply, globally, forced Asian ferrous scrap buyers to rush for domestic scrap purchases for immediate needs. Domestic scrap prices in Japan, Malaysia, and Vietnam rose on strong demand, while prices in China and South Korea showed a slower rise.
  • EAF-based steelmaker Tokyo Steel announced a third successive price hike in a week on Nov 20. The first two were on Nov 14 and Nov 17. Tokyo Steel raised ferrous scrap purchase prices for the third time by JPY1,000/mt ($9.6/mt) at three plants, Tahara, Okayama, and Kyushu. This marks the company’s sixth successive scrap price hike in November.
  • Higher prices were also supported by a hike in finished steel prices by CSC and Shagang Steel. Tokyo Steel raised domestic finished steel prices for December deliveries by JPY2,000/mt ($19/mt) following bullish global cues and a sharp rise in domestic scrap prices.
  • Average bids at the monthly Kansai tender on Nov 16 increased and a deal for 5,200mt scrap was heard on a fas basis.
  • The weekly Davis Index for #1 busheling rose by JPY250/mt fas amid limited deals. In the export market, the weekly index for #1 busheling (Shindachi) rose by JPY625/mt fob Japan. South Korea’s Hyundai raised bids for Japanese scrap by JPY2,000/mt from the week prior. Hyundai preferred higher grades with bids for HS, shredded, and busheling at fob Japan.
  • In the Kanto region, the Davis Index for #2 HMS rose by JPY250/mt, with deals at JPY29,000-29,500/mt fas. The index for the same grade rose by JPY500/mt fob Japan.
  • A Korean mill was heard to have bought 40,000 mt of #2 HMS fob this week. Traders expect Japanese export prices to increase further amid better demand and higher average bids at the Kanto and Kansai tenders.
  • The weekly Davis Index for HS and shredded grade rose by JPY1,000/mt and JPY500/mt fas, respectively.
  • Yards offered Japanese HMS 1&2 (50:50), Wednesday, at cfr Taiwan, up by $10/mt from the prior week. The index for the grade rose by $5/mt cfr Taiwan. In Vietnam, the index for Japanese HMS 1&2 (50:50) increased by $6/mt cfr, with no trades heard. Offers for the grade rose to $340/mt cfr Vietnam on Wednesday, with low to no trades.
  • In the bulk market, two unconfirmed deals were heard for HMS 1&2 (80:20) of US-origin at cfr Vietnam this week, up by $10/mt cfr from the prior deal. ($1= JPY103.9)

 

South Korea  

  • South Korean domestic ferrous scrap prices trended up amid rising imported scrap offers. Except for Hyundai, most Korean mills increased domestic scrap prices by KRW5,000-10,000/mt ($4-9/mt) delivered Pohang this week.
  • The Davis Index for domestic Heavy A, Tuesday, rose by KRW5,833/mt delivered Incheon and Pohang, respectively.
  • A few mills preferred lower-priced Light A scrap with the weekly Davis Index for domestic Light A increasing by KRW7,500/mt delivered Pohang mill.
  • Suppliers held materials expecting another round of price hike by mills amid strong steel prices. With Chinese mills increasing billet imports, steel mills in Korea are expected to increase production for December deliveries.
  • Offers for billet exports rose by $15-20/mt from the prior week cfr Southeast Asia and China. With Indian mills focusing on the domestic billet sales amid higher realizations, export volumes have reduced.
  • Containerized imported ferrous scrap prices in South Korea rose this week on the back of higher offer prices. Demand, however, is still under pressure with mills holding good levels of scrap inventories. The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, rose by $13/mt cfr, with no deals heard at the index price. Offers were up at $300-305/mt cfr this week with the expectation of a further rise.
  • Mills preferred to negotiate for Japanese bulk scrap over higher-priced US-origin material. A deal for #2 HMS by Dongkuk Steel was heard fob Japan.
  • The weekly Davis Indexes for P&S 5ft, #1 HMS, and shredded rose by $21/mt, $13/mt, and $14/mt to cfr South Korea, respectively.
  • In the bulk market, Hyundai Steel bought 6,000mt of busheling (shindachi) fob Japan and 5,000mt HS at fob on Wednesday. A South Korean mill was heard to have bought 40,000 mt of #2 HMS on fob this week. ($1=KRW1,117)

 

Taiwan  

  • The Davis Index for containerized US-origin HMS 1&2 (80:20) rose by $10/mt cfr Taiwan from the prior week. A few deals were heard at $305/mt cfr this week. Many small mills held their bids at $295/mt cfr.
  • Finished steel prices remained flat for the second week amid stable demand but tight margins. Taiwanese mills are focusing on the domestic scrap market and refusing higher domestic scrap offers. Market participants say, till steel prices do not move up, mills won’t accept higher offers.
  • Steelmaker Feng Hsin focused on purchasing domestic and South American scrap at lower prices to avoid high imported offers.
  • The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling rose by $17/mt, $10/mt, $10/mt, and $21/mt. No deals were heard for above grades as mills were wary of rising offers.
  • In the bulk market, offers for Japanese HMS 1&2 (50:50) rose $10/mt from the week prior. No deals were heard this week due to rising offers and higher bids for Kanto Tender. ($1=TWD28.6)

 

China

  • In China, Shagang Steel raised finished steel prices for November deliveries, which impacted ferrous scrap prices. The weekly Davis Index for the HMS 1&2 (80:20) rose by CNY25/mt ($4/mt). Scrap prices might increase further driven by a rise in demand for billets in the domestic market.
  • Prices for Q235 150mm square billets in Tangshan were stable with indications of a further rise. Prices rose to CNY3,570-3,590/mt ex-works, including the 13pc VAT. Billets prices are at an 18-month high, with steel mills increasing billet imports. Amid high scrap prices, SE Asian billet export offers rose $15-20/mt cfr with no buyers.
  • Chinese authorities have lifted the prohibition on the import of 136 steel products from Dec 1. This move will exempt import duties on mills importing steel for re-export. These products include HRC, CRC, and long steel products. ($1=CNY6.6)

 

Vietnam 

  • In the containerized scrap market, the weekly index for US-origin HMS 1&2 (80:20) rose by $14/mt cfr. Bids by other Asian countries were more lucrative and thus, sellers largely stayed away from the Vietnamese market.
  • The weekly index for P&S 5ft and shredded rose $16/mt and $10/mt cfr, respectively, on Thursday. Vietnamese mills are inquiring for higher grades scrap, said, traders.
  • In the containers market, prices for #1 busheling rose $19/mt cfr from a week ago, rising offers in TEU were unacceptable for buyers.
  • In the bulk market, Davis Index heard two US-origin HMS 1&2 (80:20) deals cfr Vietnam this week. Deals were also heard for Japanese #2 HMS cfr on Wednesday, while Hong Kong-origin HMS 1&2 (50:50) sold cfr on Friday.
  • The weekly Davis Index for HMS 1&2 (80:20) rose by VND125,000/mt this week delivered South Vietnam inclusive of taxes, with limited deals heard around index price. The domestic steel market is gradually recovering from the impact of storms and construction activities are picking up.
  • A sharp rise in HRC export prices and domestic rebar sales encouraged steel mills to restock ferrous scrap aggressively. Vietnamese mills raised flat steel prices amid improved demand. Formosa raised HRC prices for January shipment by $25/mt from December.
  • Hoa Phat’s order book for HRC has exceeded 180,000mt outpacing its production capacity of 90,000mt. The current orders in hand are deliverable until January 2021, said the company. In the January-October period, Hoa Phat’s steel sheet sales rose by nearly 150pc from the prior period. ($1=VND23,250)

 

Indonesia

  • Indonesian mills booked cautiously amid high US-origin offers. Market participants are expecting scrap prices to rise further next week. The difference between offers and bids in Indonesia is currently around $10/mt cfr and rising. The weekly Davis Index for HMS 1&2 (80:20) rose by $29/mt cfr Jakarta. Offers rose to $340/mt cfr Jakarta on Thursday, with bids at $330/mt cfr.
  • The indexes for P&S 5ft and #1 HMS rose by $24/mt and $29/mt cfr Jakarta, respectively. Deals for P&S 5ft were heard at $345/mt on Monday, while offers moved up to $355/mt on Thursday, with no deals heard.
  • The weekly Davis Index for #1 busheling increased by $21/mt cfr. No deals were heard for the grade as most mills restrained from buying at higher offers.
  • The weekly Davis Index for shredded rose by $26/mt cfr. Mills enquired shredded amid rising demand for billet from China. But due to rising demand from Turkey, global scrap prices rose much higher than expected, said, traders.

 

Thailand

  • The weekly Davis Index for domestic HMS 1&2 (80:20) rose by THB100/mt($3.3/mt) amid stable demand. Deals were heard for the grade at the index price. Mills preferred local scrap amid higher imported prices this week.
  • The imported scrap market remained highly bullish giving hopes for billet makers to cater to Chinese demand. A few buyers restocked ferrous scrap and a domestic short supply of scrap added to the price rise this week. ($1=THB30.3)

 

Malaysia 

  • The weekly indexes for HMS 1&2 (80:20) rose by MYR150/mt ($36.7/mt) and MYR100/mt delivered western mills and eastern mills including taxes, respectively. A sharp rise in the global ferrous scrap and billet prices pushed prices up in Malaysia.
  • Market participants said mills are cautiously buying domestic scrap and avoiding imports. Still, offers for imported US-origin HMS 1&2 (80:20) rose by $15-20/mt cfr Malaysia on bullish global cues. ($1=MYR4.1)

 

India 

  • Indian importers actively booked ferrous scrap containers before further price increases amid a tight supply of raw materials including Sponge iron, domestic scrap, and ore. Mills predominately bought HMS scrap from Australia and the UAE.
  • Few buyers were cautious about lockdown restrictions in Ahmedabad, Delhi, and many regions where COVID-19 cases are rising. This could slow down prices, said traders.
  • The Davis Index for containerized shredded on Friday cfr Nhava Sheva, was up by $22.73/mt from pre-Diwali levels. Trades for shredded from the US and Canada were concluded at the index price to maintain just-in-time inventories.
  • Traders from the UAE also raised HMS offers in the bullish Indian import market. The Davis Index for UAE-origin HMS 1&2 (80:20) cfr Nhava Sheva rose by $18/mt from November 12.
  • The Davis Index for containerized US-origin HMS 1&2 (80:20) jumped by $15/mt from last week amid short supply. There were no offers from the US and Australian bulk suppliers.
  • Other HMS scrap suppliers like the UK, South Africa, and West Africa were away on permit issues and restricted inflows.
  • With very few offers, the indexes for #1 Busheling, Turning and P&S grades rose by $15/mt, $12/mt, and $20/mt, respectively, from the prior week. ($1=Rs74.14)

 

India domestic

  • Post-Diwali, suppliers have kept their offers firm on bullish global cues.
  • In Mandi Gobindgarh, the index for HMS 1&2 (80:20) rose by Rs1,200/mt this week.
  • The bi-weekly index for HMS 1&2 (80:20) in Durgapur rose by Rs1,900/mt ($25.57/mt) del mill ($375.52/mt) amid an increase in imported scrap prices. The index for Sponge rose by Rs400/mt ($5.38/mt) on the back of iron ore shortage.
  • In South India, mills prefer to buy domestic scrap over high-priced imported scrap. The index for Sponge iron rose by Rs350/mt del Chennai.

 

Pakistan  

  • Pakistan mills in Karachi and Punjab, finally, raised rebar offer prices by PKR2,000-2,500/mt ($12.4-15.6/mt) to offset higher ferrous scrap prices after more than a month.
  • The daily Davis Index for containerized shredded, Friday, gained by $2.39/mt cfr Port Qasim. The index rose by $21.72/mt from November 12 almost hitting a two-year high. Most US yards refused to make fresh offers amid depleting stocks. Yards are expecting low collection rates as winter approaches.
  • The Davis Index for UAE-origin HMS 1&2 (80:20) settled Friday cfr Port Qasim, up by $2/mt from Thursday and up by $16/mt from the last week. Mills preferred shredded over HMS scrap to avoid paying extra tax.
  • The index for US-origin HMS 1&2 (80:20), Friday, rose by $17/mt from Nov 12. Most European supplier countries are under lockdown amid the rising tally of COVID-19 infections. Containerized offers for the grade from the US and UK were limited in anticipation of a bullish domestic December market.
  • The Pakistani currency depreciated to PKR160.5 against the US dollar after reaching the 158-mark last week, limiting imports this week.    Bala billet prices rose to push the Davis index for the grade up by PKR1,000/mt ex-works Punjab from a week ago. The weekly indexes for Pure Q Toke (shredded) and Art Q toke scrap equivalent to mix HMS and P&S rose by PKR1,500/mt in line with higher imported scrap prices. ($1=PKR160.5)

 

Bangladesh

  • Bangladeshi imported ferrous scrap prices jumped by $15-20/mt in a week following strong global cues. Importers were cautiously buying as offers have gone up sharply and uncertainty around COVID-19 hampered market sentiments.
  • Many mills rushed to secure domestic ship scrap purchases lifting prices by BDT2,500-3,000/mt ($29-35/mt) in a week. The weekly Davis Index for HMS 1&2 (80:20) ex-yard on Friday, rose by BDT2150/mt.
  • The daily Davis Index for containerized shredded, Friday, increased by $3.39/mt from Thursday and by $14.14/mt from a week earlier. Bids lag by at least $10/mt for shredded cfr Chattogram. Limited trades reported as per the need basis.
  • The weekly Davis Index for containerized US-origin HMS 1&2 (80:20) settled cfr Chattogram, up by $2.36/mt from Thursday and up to $16/mt from a week earlier. A few mills are avoiding imports from the US and UK due to longer delivery schedules.
  • P&S from the UK and Latin America offers rose by $20/mt from the prior week. The weekly Davis Index for domestic billet Friday rose BDT750/mt ex-works Chattogram with trades at the index price as mills tried to offset high input costs.
  • The weekly Davis Index for rebar from medium-scale steelmakers ex-works was up BDT1,500/mt. Large steel producers BSRM and AKS too indicated another round of price hike for rebar despite slower trades.
  • Offers for scrapped vessel imports were flat with indications of increased arrivals and prices reaching $400/ldt by year-end. ($1= BDT84.77)

 

Metallics

 

CIS 

  • The weekly Davis Index for CIS basic pig iron surged by $15/mt in the Black Sea basin on Friday amid robust demand in the global market. The consistent price uptrend for ferrous scrap and steel products around the world supported pig iron price increase.
  • Trading was active in the CIS export pig iron market in the third week of November, with suppliers achieving higher prices. A Russian producer sold a large cargo to China at $422/mt cfr for February shipment, while most bids varied in the range of $410-415/mt cfr. Last week, a booking of CIS material in China was reported at $408/mt cfr.
  • The weekly Davis Index for CIS pig iron in Italy jumped by $20/mt on Friday as negotiations resulted in a deal. The buyer was compelled to accept a significant price increase for Ukrainian material, considering transactions at alternative outlets.
  • New deals were also closed in the Turkish market during the week. Thus, Ukrainian pig iron was sold at $415/mt cfr, while Russian material changed hands at $417/mt cfr. Last week, a cargo of Ukrainian pig iron was booked at $398/mt cfr.

 

US

  • The weekly Davis Index for basic pig iron (BPI) increased by $8/mt cfr New Orleans port on Thursday as offer levels to the US proceed upward amid strong demand and sales to China.
  • Price increases have been trending up for metallic imports and domestic scrap in November due to limited supply and rising demand.
  • The last BPI sales to the US concluded at the end of October at $377-382/mt cfr Nola. US buyers were being quoted $390-400/mt cfr Nola for BPI cargoes on Thursday for January shipment.
  • BPI consumers in the US were hesitant last week, to agree to the latest, climbing offer levels. However, US buyers are planning to resume purchases in the short term and expect the next deals to settle near $390-395/mt cfr Nola.
  • The most recent BPI sales into China and Taiwan from the CIS still stand at $405/mt cfr, barring trader fees, which would equate to $390-395/mt cfr Nola. The prior transactions from late October were at $392-395/mt cfr, while offers heard into China this week are at $410-415/mt cfr.
  • The Davis Index for nodular pig iron (NPI) imports increased by $5/mt cfr Nola. This grade has been in tight supply and not readily offered, but buyers assess the price point for NPI into the US market around $440-445/mt cfr Nola on Thursday.
  • The weekly Davis Index for US hot briquetted iron (HBI) imports rose by $4/mt cfr Nola. Buyers have not considered purchasing this grade in some time, however, pricing for the material is projected at this level, based on price trends for comparable scrap grades.

 

India

  • The daily Davis Index for billet in Mumbai rose by Rs1,200/mt ($16.19/mt) from the previous Friday in sync with the rise in rebar prices. The price rise was also supported by bullish imported scrap prices. The index for rebar rose Rs900/mt ($12.14/mt) amid healthy sales.
  • A sharp rise in Sponge iron and iron ore pellet prices pushed the index for billet in Raipur up Rs1,500/mt ($20.24/mt) from the prior Friday. The daily Index for rebar rose Rs1,100/mt ($14.84/mt), however, demand was moderate.
  • In Jalna, the bi-weekly index for billet rose Rs1,500/mt on Thursday amid strong demand and a spike in local scrap prices. The index for rebar surged by Rs2,000/mt ($27/mt).
  • The bi-weekly index for billet in Durgapur, Thursday, rose Rs2,000/mt from last week in line with a rise in rebar prices with the index for the grade up Rs2,000/mt.
  • In Mandi Gobindgarh, the daily index for ingot increased Rs1,000/mt ($13.49/mt) from the prior Friday amid high local scrap prices. ($1=Rs74.11)

 

Shipbreaking 

  • Healthy demand from local and North-based mills lifted shipbreaking prices on Friday. Mills are keen to book more material anticipating a rise in demand from end-users.
  • The daily Davis Index for 4Ani rose Friday by Rs1,350/mt ($18.21/mt) and the index for Rs1,450/mt ($19.56/mt) from the last week. The melting scrap index rose by Rs1,400/mt ($18.89/mt) on Friday from the prior week.
  • The demand for plates has gone up as construction activities have picked pace. The index for 2kg plate Friday rose by Rs1,600/mt ($21.58/mt) ex-Alang from a week ago.

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