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Ferrous market update: October 26-30

Ferrous Market Update 10/30/2020

 

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) inched up by $0.90/mt on Friday as sellers remained firm on their price expectations.
  • The Turkish ferrous market was quiet as buyers are yet to resume negotiations after the Republic Day holiday on Oct 29. However, suppliers of the material believe that Turkish mills, who require cargoes for December shipment, will continue purchases next week. 
  • Sellers expect deals at around $295/mt cfr for HMS 1&2 (80:20) or higher from the USA and the Baltic region.
  • The daily spot rebar prices in Turkey surged by TRY90-130/mt ($11-16/mt) on Friday amid a notable and permanent devaluation of the Turkish lira against the US dollar. 
  • Icdas raised its local rebar prices by TRY90/mt ($11/mt), while Bastug Metalurji increased them by TRY250/mt ($30/mt). ($1=TRY8.38)

 

Turkey domestic

  • The weekly Davis Index for DKP scrap (equivalent to auto bundles) in Turkey was flat on Monday as none of the mills revised purchase prices, despite currency fluctuations.
  • Purchase prices for shipbreaking scrap in Izmir have also held at $275-280/mt delivered. ($1=TRY8.08) 

 

CIS

  • The weekly Davis Index for HMS 1&2 (80:20) increased by $2/mt fas Baltic Sea basin and by $3/mt fas Black Sea basin on Monday amid stronger demand for ferrous scrap export.
  • Turkish mills are on a buying spree for November shipment cargoes because of which, some mills are negotiating with Russian suppliers. 
  • Russian exporters tried to achieve prices above $290/mt cfr for HMS 1&2 (80:20) on Monday, considering recent transactions for Baltic material in Turkey, done at $291.50-292.50/mt cfr for the same grade.
  • Collection prices rose in Russia amid higher export activity and a firm domestic market. As a result, in St Petersburg dock the weekly Davis Index for A3 scrap increased by RUB275/mt ($4/mt) on Monday. Exporters are ready to pay a premium of RUB200-300/mt to get 100mt and more due to the slow inflow of the material.
  • The weekly Davis Index for A3 scrap surged by RUB1,200/mt ($16/mt) in Rostov-on-Don. ($1=RUB76.23)

 

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region increased by €4/mt ($5/mt) on Tuesday amid an uptrend in the export market.
  • Collection prices for ferrous scrap increased in the Netherlands and Belgium as suppliers achieved higher prices in sales to Turkey due to strong demand. Offer prices from Europe increased this week.
  • Some exporters are currently negotiating with Turkish importers with offers heard at around $290/mt cfr for HMS 1&2 (75:25). (€1 = $1.18)

 

UK dockside

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices trended flat delivered dockside on Tuesday.
  • Dockside ferrous scrap prices in the UK remained unchanged over the past week despite incremental price increases in major seaborne trade routes, particularly to Turkey.
  • Export prices to Turkey have edged up on a cfr basis, though some UK-based bulk ferrous scrap exporters have had to scale back fob prices in response to firmer freight costs.
  • Mill buyers and scrap exporters have been eagerly following recent trades in the Turkish market to provide strong cues towards the next developments in pricing action. 
  • One European mill buyer was relatively bearish on pricing action going forward given that the US dollar has appreciated 4.6pc against the Turkish lira since Oct 22. This will make the US dollar-denominated imports, including ferrous scrap, more expensive for Turkish-based mills when converting production costs into lira.
  • The weekly indexes for north and south UK OA (Plate & Structural) were both unchanged over the same period delivered. 
  • Davis Index’s north and south UK 5A/5C (frag feed) ferrous scrap indices were unchanged delivered dockside over the past week. (£1 = $1.30)

Spain

  • Davis Index’s weekly northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices both climbed by €3/mt ($3/mt) on Friday.
  • The range within which new deals for Spanish HMS 1&2 (80:20) ferrous scrap imports were concluded widened to €230-235/mt over the past week.
  • A European-based ferrous scrap supplier was relatively bullish noting that the market seemed to be warming up following recent price strength in major seaborne trade routes. 
  • However, the same trader was concerned about the medium-term outlook for steel and underlying ferrous scrap demand following fresh COVID-19-related lockdowns in the UK, France, and Germany.
  • Meanwhile, Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded both edged €2/mt fob lower on October 30.
  • One UK-based bulk ferrous scrap exporter commented that some suppliers had marginally reduced their levels to accommodate heftier freight rates. (€1 = $1.11)

 

US dockside

  • US East Coast ferrous scrap dock collection prices were mostly flat despite the rising export activity and rates. Houston dock prices have fallen slightly over the past two weeks amid adequate material flows.
  • Dockside tags along the East Coast have lingered near the same price points for about three weeks, standing at $225-230/gt for HMS 1&2 (80:20) on Tuesday. Houston dock prices softened following a demand and price surge on Oct 13.
  • Export demand has incrementally improved over the past week following a slump that started around Sep 15. Trades between Turkey and the US were active on Tuesday, with HMS 1&2 (80:20) trading at $292-294/mt cfr, as Turkish buyers needed ample material for November. This level represents an increase of about $5-7/mt compared to proposals and deals on Oct 20.
  • Market participants near the East Coast are starting to hold onto available material and opting for a wait-and-see approach. Domestic demand is optimistic, and some sellers feel they can apply upward pressure to gain at least $5/gt before selling to bulk exporters.
  • In Boston, the weekly Davis Index for export yard HMS 1&2 (80:20) and shredder feed both ticked up by $1/gt delivered dock. P&S 5ft remained unchanged. 
  • The weekly Davis Index for export yard buying prices in New York inched up $2/gt delivered for HMS 1&2 (80:20) and $1/gt delivered dock for P&S 5ft and for shredder feed. 
  • In Philadelphia, the Davis index for export yard collection prices of HMS 1&2 (80:20) increased by $2/gt delivered, and P&S 5ft moved up by $1/gt delivered Philadelphia dock. The index for shredder feed slid down $2/gt delivered.  
  • In Houston, the weekly Davis Index fell by $5/gt for HMS 1&2 (80:20) delivered. P&S 5ft dropped by $11/gt due to a price correction after premiums were paid for large volumes of the grade earlier in October. The shredder feed index rose $2/gt delivered. Prices in Houston are projected to remain sideways in November.
  • US West Coast ferrous scrap dock prices mostly trended flat or up as container and bulk scrap deals to Asia continued experiencing firm tags on active demand and tight supply.
  • Imported scrap deals for HMS 1&2 (80:20) at $292-294/mt cfr Turkey have climbed by $8-9/mt from $284-285/mt cfr in early October, providing support for higher scrap prices. 
  • A recent bulk deal to Bangladesh at around $321/mt on HMS 1&2 (80:20), P&S 5ft, and shredded scrap was about $9/mt higher than the average of an early August US-origin deal. 
  • Bangladeshi, Pakistani, and Indian scrap importers accepted higher scrap prices to meet mill capacity goals and on recovering finished steel demand. Given the strong price outlook of sideways to up into December, scrap buyers sought to buy before encountering further price increases. Pakistani buyers benefited from currency exchange improvements with a stronger Pakistani Rupee.
  • The weekly Davis Indexes in Portland were flat for HMS 1&2 (80:20) and shredder feed. P&S 5ft though, increased by $4/gt on increased payment schedules this week to attract the tight supply in advance of the mill scrap buys next week. 
  • The domestic price expectation for November continues to remain sideways for most grades with the possibility of slight increases in #1 busheling in some regions. Prices in Pacific Northwest remained relatively flat through October but could strengthen in November on winter season changes in flow and strong domestic and export demand. 
  • In San Francisco, the weekly indexes were rangebound with HMS 1&2 (80:20) flat and P&S 5ft increasing by $1/mt. Shredder feed remained unchanged.  
  • The weekly Davis Indexes in Los Angeles climbed this week. Prices were flat officially, but docks were willing to pay a premium of up to $20/gt for large, high-quality loads. HMS 1&2 (80:20) and P&S 5ft rose by $8/gt delivered dockside, and shredder feed decreasing marginally by $1/gt delivered.
  • Market participants continue reporting low scrap inventories at docks and scrap feedstock with increased difficulty in receipt of quality structural and cut grades in larger tonnages. The decline in P&S 5ft is attributed to dampened demolition activity this month. 
     

US containers

  • US containerized ferrous scrap indices increased for the third consecutive week on strong demand from Asian buyers.  
  • Recovering activities in their domestic markets have prompted Asian buyers to continue buying imported scrap. Although uncertainty around a potential second wave of COVID-19 shutdowns looms, Asian mills’ schedules are recovering as stimulus packages are rolled out and infrastructure projects gain focus. 
  • The current strength of the hot-rolled coil (HRC) and cold-rolled coil (CRC) prices in China, Turkey, and the CIS region is supporting expectations of limited dumping flows and overall dynamic demand throughout influential trade flows into Asia. 
  • Indian and Pakistani buyers remain active and Bangladeshi buyers will return to the market in November for January buys as most mills have sufficient volumes at present. However, buyers from these countries are also contending with higher container freight charges. 
  • Some Vietnamese mills recently negotiated bulk scrap deals and could return to containerized markets later in the year. 
  • US containerized scrap prices are being supported by diminishing inventories and rising prices in buyers’ local markets. 
  • Asian buyers have increased their interest in US containerized ferrous scrap despite higher prices as Japanese and Russian export scrap inventories tighten. 
  • Tight scrap inventories, solid production improvements at US mills, continued orders on HRC and CRC at higher prices, strong rebar sales, firm iron prices, and active export interest is expected to support US containerized prices into November. Most market participants expect a strong market through November and December.  
  • The weekly Davis Indexes in New York increased across all grades for the second consecutive week with the index for HMS1&2 (80:20) and shredded rising by $5/mt fas.  
  • In Los Angeles, the Davis Indexes also improved across all grades for the third consecutive week. HMS 1&2 (80:20) and shredded increased by $9/mt fas, #1 busheling rose by $12/mt fas and P&S 5ft climbed by $7/mt fas. 
  • The Davis Indexes in San Francisco for HMS 1&2 (80:20) rose by $12/mt fas as the same grade in Seattle increased by $14/mt fas. 

 

Mexico

  • Domestic ferrous scrap prices in Mexico increased for most grades in the North, Bajío, and Central areas as demand for scrap continued to rise across the country.
  • In North Mexico, the weekly Davis Indexes for HMS 1&2 (80:20) and P&S 5ft rose by MXN70/mt delivered Mexico consumer. Machine shop turnings moved up by MXN46/mt delivered. Shredded fell by MXN330/mt delivered and #1 busheling declined by MXN254/mt.
  • Prices in Mexico were expected to peak in October. However, the continued demand, especially from the automotive and construction industries, coupled with tighter flows has market participants in North Mexico anticipating increased prices, in Mexico as well as the US, in November as well.
  • The weekly Davis Indexes in Bajío for HMS 1&2 (80:20) rose by MXN142/mt delivered Mexico consumer, #1 busheling increased by MXN58/mt delivered, P&S 5ft by MXN108/mt delivered, machine shop turnings by MXN225/mt delivered, and shredded by MXN125/mt delivered.
  • Scrap prices in Bajío and Central areas rose this week across all grades amid upward pressure due to high demand in the market, a market participant from these regions told Davis Index adding that prices will continue increasing in November due to high demand for steel in Mexico and the export sector.
  • In Central Mexico, the weekly Davis Index rose for HMS 1&2 (80:20) by MXN200/mt, for P&S 5ft by MXN125/mt, for machine shop turnings by MXN275/mt, for shredded by MXN375/mt, and for #1busheling by MXN125/mt all in delivered terms.

 

Japan  

  • Tokyo Steel kept purchase prices for domestic scrap flat this week after raising them by JPY1500/mt last week for Okayama and Takamatsu plants. 
  • As export offers rise on global cues, traders are expecting Tokyo Steel to raise domestic scrap prices next week. 
  • In the Kanto region, the Davis Index for #2 HMS settled higher by JPY750/mt fas. The index for the same grade rose by JPY1,144/mt fob Japan. Traders expect Japan export prices to rise further on rising demand. 
  • The weekly index for the HS rose by JPY1,000/mt fas. Limited deals were heard for #1 busheling (Shindachi) amid high offers. The weekly index for the grade rose by JPY750/mt fas. 
  • In the export market, the index for #1 busheling (Shindachi) rose by JPY750/mt fob Japan. 
  • The weekly Davis Index for shredded settled higher by JPY550/mt from a week ago. 
  • South Korean mills focused on more bulk cargo deals, which are priced lower than containerized scrap. Yards offered Japanese HMS 1&2 (50:50) Wednesday cfr Taiwan, at prices up by $5-10/mt from the prior week. The index for the grade rose by $10/mt cfr Taiwan while it rose by $13/mt cfr Vietnam. Traders are optimistic about a recovery in demand as steelmakers are likely to ramp-up production in most Asian countries amid a gradual rise in demand from the infrastructure and auto sectors. 
  • Domestic ferrous scrap prices in most Asian markets trended flat to up. Offers from the US and Europe increased, which pushed mills to opt for domestic scrap over imports. ($1= JPY104.6)

 

South Korea  

  • Containerized imported ferrous scrap prices rose in South Korea this week due to increased asking prices. Demand, however, is still under pressure amid enough inventories with steel mills. 
  • The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, settled higher by $10/mt cfr, with limited deals heard at the index price. 
  • Mills preferred to negotiate for Russian and Japanese bulk scrap over higher-priced US-origin material. A deal for Japanese bulk scrap cargo was heard on cfr South Korea, with buyers restocking before offers rise. 
  • In the coming days, mills expect finished steel export and domestic demand to recover, aided by billet exports to other Asian countries. Bids for billets rose by $10/mt on Wednesday cfr Southeast Asia. China reduced billet imports amid high inventories but could return to the market if the domestic demand increases. 
  • The weekly Davis Indexes for P&S 5ft, #1 HMS, and shredded rose by $9/mt cfr South Korea. 
  • South Korean domestic ferrous scrap prices trended flat this week. Hyundai had planned to reduce domestic scrap prices by KRW10,000/mt ($8.8/mt) last week but has delayed the decision due to rising imported scrap prices. Traders believe South Koreans might stay away from the market this week as well. 
  • The Davis Index for domestic Heavy A, Tuesday, settled flat delivered Incheon and Pohang mill.
  • Most mills preferred lower-priced Light A scrap this week but the weekly index for domestic Light A also settled flat. ($1=KRW1,138)

 

Taiwan  

  • Taiwanese mills caved in and raised their bids amid rising global prices, albeit cautiously. The Davis Index for containerized US-origin HMS 1&2 (80:20), Thursday, rose by $3/mt cfr Taiwan from the day prior and by $7/mt from Oct 22. Prices for finished steel were also up this week and are likely to rise further to offset increased input costs. 
  • The weekly Davis Indexes for domestic HMS 1&2 (80:20) in South and North Taiwan were up by TWD300/mt ($10/mt) delivered mill. Offers increased on the back of firm global scrap prices and domestic ferrous scrap shortage. A freight rate hike on many seaborne routes has also increased the landed cost for ferrous scrap imports. 
  • The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling rose by $7/mt, $8/mt, $7/mt, and $5/mt cfr, respectively. 
  • Feng Hsin raised rebar and scrap prices this week by TWD300/mt on Tuesday after a hiatus of three weeks. Market participants indicated that mills had to raise rebar prices to offset higher scrap prices. ($1=TWD28.7)

 

China

  • In China, Shagang Steel raised finished steel prices for November deliveries.
  • The weekly Davis Index for the HMS 1&2 (80:20) settled lower by CNY5/mt del mill from prior Tuesday. As per traders, ferrous scrap prices were down by CNY10/mt in the early part of the week but improved due to rising demand for billets. 
  • Prices for Q235 150mm square billets in Tangshan, North China’s Hebei province, rose by CNY20/mt ex-works including the 13pc VAT. Few small rebar manufacturers resumed production after pausing operations for around 15 days to control pollution. China’s September steel output rose by 0.9pc from the previous month as mills ramped up production to meet demand from infra projects. 
  • The Chinese government also took steps to grade domestic steel scrap, which is expected to improve ferrous scrap supply and the market in the long run. Market participants expect this to curb the supply of low-quality scrap into the Chinese market.
  • Lowering iron ore prices in the international market might impact scrap prices negatively, but traders expect long term prices to be positive. 
  • China’s GDP rose by 0.7pc in October after a slow growth amid the COVID-19 pandemic. ($1=CNY6.7)

 

Vietnam 

  • In the containers market, the weekly index for US-origin HMS 1&2 (80:20) settled higher by $9/mt cfr Vietnam on Thursday. Bids by other Asian countries were more lucrative and thus, sellers largely stayed away from the Vietnam market. 
  • Vietnamese mills, on the other hand, negotiated for Japan and US-origin material in bulk and containerized trades took a backseat. 
  • The weekly index for P&S 5ft and shredded rose by $11/mt and $13/mt cfr on Thursday. In the containers market, prices for #1 busheling rose by $8/mt cfr from a week ago. 
  • In the bulk market, Japanese #2HMS was sold cfr Vietnam on Friday. Offers for HMS 1&2 (50:50) from Hong Kong were up by $5-10/mt from the week prior. 
  • The weekly Davis Index for HMS 1&2 (80:20) rose by 5.3pc or VND3,75,000/mt ($16/mt) delivered South Vietnam inclusive of taxes, with limited deals heard at the index price. Shortage of ferrous scrap in the domestic market and rising scrap import offers lifted prices, said traders. 
  • Mills are gradually increasing domestic and imported scrap purchases amid improving billet prices in China. In the bulk market, an unconfirmed deal for US-origin HMS 1 &2 (80:20) was heard cfr last week. Containerized imports saw no rise in import volumes as Vietnamese mills focused on bulk scrap purchases. ($1=VND23.1)

 

Indonesia

  • Mills were unwilling to book material this week on rising offers for US-origin material and declining activity due to national holidays until Friday. Market participants are expecting scrap prices to rise further next week amid global cues and an increase in domestic demand. 
  • The weekly Davis Index for HMS 1&2 (80:20) rose by $7/mt cfr Jakarta with no deals heard. 
  • The indexes for P&S 5ft and #1 HMS rose by $2/mt and $12/mt cfr Jakarta, respectively. Deals were heard for P&S 5ft in containers on a cfr basis early this week. However, mills opted out of the market subsequently. 
  • The weekly Davis Index for #1 busheling and shredded scrap rose by $3/mt, and $10/mt cfr Jakarta, respectively. Traders expect Indonesian mills to start bookings on Monday. 
  • Billet imports into the country could reduce with the extension of the scrap registration deadline. Traders are offering billets at $450/mt cfr SE Asia made in blast furnaces, with no deals reported.

 

Thailand

  • The weekly Davis Index for domestic HMS 1&2 (80:20) rose by THB350/mt ($11/mt) del Rayong mill inclusive of taxes. Deals were heard for the grade at the index price. 
  • Mills increased domestic scrap purchases to avoid higher-priced imported scrap. A few trades for South American HMS 1&2 (80:20) were heard on a cfr basis this week.
  • Deals were also heard for P&S 5ft on Tuesday. Sluggish domestic steel demand is still a cause of concern for many mills in Thailand. ($1=THB31)

 

Malaysia 

  • The weekly indexes for HMS 1&2 (80:20) fell by MYR100/mt($24/mt) and MYR75/mt to delivered western mills and eastern mills including taxes, respectively. Scrap prices fell as Malaysia extended the pandemic-related lockdown. Steel mills are expected to delay the purchase of ferrous scrap amidst production challenges and sluggish domestic demand for finished steel. 
  • No trades were heard in the import market, but demand for ferrous scrap could rise in the coming weeks, as per traders. Offers for US-origin HMS 1&2 (80:20) rose by $10-15/mt cfr. ($1=MYR4.16)

 

India 

  • Indian steel mills continued restocking imported ferrous scrap, aided by persisting demand in the auto sector, amid an economic push by the country’s government. Many mills booked substantial volumes in containers early in the week, but some buyers were still resisting current price levels due to global uncertainty. 
  • The Davis Index for containerized shredded on a cfr Nhava Sheva basis rose by $0.79/mt from Thursday and by $3.83/mt from last Friday. A stainless steelmaker in Vizag also bought 2,500mt of containerized shredded cfr Vizag.
  • Indian currency depreciated to Rs74.48 on Friday against the US dollar from Rs73.67 last week. The depreciation has dampened buying interest for a few mills. 
  • The Davis Index for US-origin HMS 1&2 (80:20) rose by $6.43/mt cfr from a week earlier. Turning scrap traded in limited volumes but prices for the grade increased amid an uptick in HMS prices. The weekly index for Turning scrap was up by $3/mt cfr Nhava Sheva, with trades reported cfr Chennai and Vizag. Busheling and P&S 5ft traded in thin quantities on revival in demand. 
  • Indian traders, however, believe bookings could slow in the second week of November due to the Diwali festival. China’s appetite for domestic billet has increased and thus mills were unwilling to import billets, affecting Indian exports also. 
  • The Davis Index for containerized shredded, Friday, cfr India subcontinent, was up by $0.56/mt from Thursday and by $5/mt from a week earlier. Limited availability of containers pushed landed cost up for ferrous scrap imports. ($1=Rs74.48)

 

India domestic

  • Most regions in the country are dealing with a shortage of ferrous scrap, which is driving supporting domestic scrap prices. 
  • The Davis Index for HMS 1&2 (80:20) settled unchanged from the day prior delivered to Mumbai mill but rose by Rs350/mt from the prior Friday. 
  • In Mandi Gobindgarh, the index for HMS 1&2 (80:20) fell by Rs200/mt from a day ago but increased by Rs500/mt from the prior week. 
  • In North India, protests since the last two weeks against the proposed farm bill in India is gathering steam. As a result, the movement of around 97 goods carrier trains was affected, increasing logistic charges and consequently offers for domestic scrap.

 

Pakistan  

  • Imported ferrous scrap prices in Pakistan were on an uptrend this week as mills restocked amid declining inventories. Trading was also supported by indications of a firm scrap market in November. 
  • The Davis Index for containerized shredded, Friday, rose by $8.25/mt from the prior week cfr Port Qasim. 
  • Pakistan ferrous scrap importers are paying $3-5/mt higher than their Indian counterparts due to increased container freight charges and limited container availability globally. 
  • The weekly Davis Indexes for P&S and #1 busheling cfr Port Qasim, up by $6/mt and $7/mt, respectively. Some mills in dire need of these grades paid higher prices to restock, anticipating short supply towards the year close due to seasonal concerns. 
  • The weekly Davis Index for commercial Bala billet, ex-works Punjab, up PKR250/mt. Early this week, prices for Bala billets had declined but later in the week, mills increased their asking prices to cover the rise in imported scrap prices. 
  • In Punjab, G-60 rebar prices ex-works, down by PKY500-1,000/mt from the prior week. The Pakistani rupee has appreciated to PKR160.62 against $1 from 162.5 levels last week, boosting sentiments in the import market.
  • In Lahore, the local government could ask some secondary steel mills, especially those without smog or carbon emission control machinery, to pause production for a few weeks due to heavy smog. This dip in production could impact domestic ferrous scrap prices. The index for Pure Q toke scrap equivalent to shredded dropped by PKR250/mt ex-works Lahore, Friday, from late last week. ($1=PKR160.62)

 

Bangladesh

  • Bangladesh mills continued to book containerized scrap this week with demand showing signs of recovery. In the bulk market, a mill in Chattogram resumed bulk imports after a long gap with a trade for cargo comprising shredded, HMS 1&2 (80:20), and P&S scrap, this pushed offers for US West Coast-origin HMS 1&2 (80:20) up by $5/mt. 
  • The Davis Index for containerized shredded, Friday, on a cfr Chattogram basis, rose by $5.43/mt from the prior week. Ferrous scrap buyers booked containers of shredded from Europe, Australia, and New Zealand to meet their requirements in limited volume.
  • The weekly Davis Index for containerized HMS 1&2 (80:20) rose by $4/mt for US-origin material and by $8/mt for that from UK and EU. 
  • Most sellers diverted offers for busheling and P&S to Bangladesh as Indonesian buyers were away for national holidays.   
  • Domestic steel demand in Bangladesh is yet to return to the pre-COVID-19 levels, but end-user demand has started picking up. Steel prices, therefore, ended their downtrend. The sustainability of this price rise, however, is questionable as the recovery is not as robust as expected.
  • The weekly Davis Index for domestic billet Friday ex-works Chattogram, rose by BDT650/mt, with trades at the index price. Dhaka-based finished steel producers sold rebars at prices up by BDT500-1,000/mt from the prior week. Domestic shipbreaking scrap equivalent to P&S traded at prices up by BDT500/mt ex-yard Chattogram. ($1=BDT84.80)

 

Metallics

 

CIS 

  • The weekly Davis Index for CIS basic pig iron increased by $3/mt fob Black Sea on Friday amid higher offers and a new deal in China.
  • No bookings were reported in the CIS export pig iron market from the Black Sea basin at the end of October, while some transactions were fixed for cargoes, which will be shipped from other ports. Thus, a CIS supplier sold 20,000mt of pig iron from Far East Russia to China at $395/mt cfr for January shipment on Oct 29, while previous sales to China were done at $387-390/mt cfr. The same producer closed a deal at $392/mt cfr Taiwan for 15,000mt of the material.
  • Another Russian seller found a buyer in Western Europe for 5,000mt of pig iron at $375/mt fob Baltic Sea for January delivery.
  • Most of the CIS exporters have sold out material for December shipment and in anticipation of increased demand, have raised offers for the material to $365/mt fob Black Sea amid limited availability. Negotiations are in progress.
  • The weekly Davis Index for CIS pig iron in Italy was flat on Friday as the stalemate on prices continues between buyers and sellers.

 

US

  • The weekly Davis Index for basic pig iron (BPI) increased by $7/mt, New Orleans port on Thursday following the latest cargo sales at mounting prices along with higher offer levels. 
  • The US has been actively booking BPI cargoes from the CIS over the past week, at prices ranging between $373-377/mt cfr Nola. The ensuing deals could conclude near or above this span.
  • Current offers from the CIS are at $385-390/mt cfr Nola, for December or January shipment. Offers from Brazil are at around $370/mt fob, which would compare to about $390-395/mt cfr Nola. Buyers have not agreed to these price points yet.
  • On Jun 4 BPI was $317/mt and has gradually increased, by approximately $60/mt since then.
  • Market participants feel that if prices do firm up in domestic scrap trade in November, as expected, pig iron and other scrap alternatives will also continue to climb.
  • The Davis Index for nodular pig iron (NPI) imports increased by $12/mt as the availability of the material is limited. The grade is being offered into the US market at around $440/mt cfr Nola and higher, for December shipment.
  • The weekly Davis Index for US hot briquetted iron (HBI) imports increased by $3/mt. New activity has not been heard for HBI as demand is low, however, the material is likely priced at this level on Thursday, compared to price trends for similar alternative grades. 

 

India

  • The index for Sponge iron settled unchanged from Thursday del Mumbai mill but rose by Rs1,100/mt from a week ago. In Mandi Gobindgarh, the index for Sponge iron rose by Rs100/mt in a day and by Rs1,200/mt in a week. 
  • Sponge iron exports to Bangladesh have increased, impacting its availability and prices in the domestic markets. ($1=Rs74.28)

 

India finished steel

  • The Davis Index for billet in Mumbai increased by Rs400/mt ($5.36/mt) from the previous Friday in-line with a rise in rebar prices. The price rise is also supported by an increase in imported scrap prices by $3-4/mt in the week. The index for rebar was up by Rs300/mt ($4.02/mt), however, demand is moderate at increased prices.
  • In Raipur, the index for billet was unchanged from the previous Friday. Billet price rose early in the week, but it fell in the second half. The index for rebar was also flat amid sluggish sales. 
  • In Mandi Gobindgarh, the index for ingot was up by Rs200/mt ($2.68/mt) from the previous Friday. 
  • In Durgapur, the index for billet was up by Rs1,000/mt on Thursday from last week due to increased sponge iron prices. The bi-weekly index for rebar surged by Rs2,000/mt ($26.84/mt), largely due to revised gauge differences in rebar. 
  • In Kutch, the bi-weekly index for billet rose by Rs500/mt ($6.71/mt) on Thursday from the previous week in-line with a rise in rebar prices. The index for rebar increased by Rs550/mt ($7.38/mt).

 

Shipbreaking 

  • Shipbreaking prices trended flat to down compared to the prior week amid sluggish demand from the rolling mills in Mandi and Gujarat.
  • The daily Davis Index for HMS attachments and Melting dropped by Rs300/mt ($4.03/mt) on Friday from the prior week. A few trades concluded at the index price.
  • The shipbreakers reduced offers to clear off the daily inventory and maintain cash flow. The daily Davis Index for 6Ani dropped by Rs50/mt, while the index for 10Ani dropped by Rs250 compared to the prior week. The indexes for 12Ani and 14Ani dropped by Rs100/mt. 
  • The demand for plates remained mixed throughout the week. The index for 1kg plate declined by Rs100/mt, while the index for 2kg and 5kg plate dropped by Rs150/mt each.

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