Ferrous Market Update 10/02/2020
- The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) climbed by $0.20/mt on Friday.
- Trading remains sluggish amid ongoing negotiations in the imported ferrous scrap market, with buyers insisting on significant price decreases and suppliers resisting those bids.
- Most Turkish mills require scrap cargoes for November shipment and are bidding $285/mt cfr for HMS 1&2 (80:20) from the USA and the Baltic region. Some market participants have chosen not to hurry with their transactions preferring instead, to wait for a price trend to emerge from the deals next week.
- The daily domestic spot rebar prices in Turkey were flat at TRY4,100-4,170/mt ex-works, including 18pc VAT, on Friday. The daily exported rebar prices moved to $450-455/mt fob from $455/mt fob a day ago due to weak demand.
- The weekly billet prices in the Turkish domestic market decreased by $5/mt to $425-430/mt ex-works as trading was suspended. ($1 = TRY7.77)
- The weekly Davis Indexes for DKP scrap and extra grade scrap in Turkey both remained unchanged on Monday.
- Most Turkish steelmakers have not revised their purchase prices for local material since September 8-10 as its inflow meets the current demand.
- The weekly Davis Index for A3 scrap inched up by $1/mt fob Baltic Sea on Monday and climbed by $3/mt fob Black Sea as demand improved.
- No sales were reported in the Russian export ferrous scrap market last week, though some Russian suppliers planned to resume negotiations at $295-300/mt cfr for HMS 1&2 (80:20) from St Petersburg, while bids from Turkey were reported at around $290/mt cfr.
- Exporters from Rostov-on-Don prefer to wait and assess market conditions, before considering offers and future sales.
- Collection prices diverged in the Russian market with the weekly Davis Index for HMS 1&2 (80:20) decreasing by RUB400/mt ($5/mt) delivered St Petersburg dock and increasing by the same amount delivered Rostov-on-Don dock on Monday. ($1 = RUB78.93)
- The weekly Davis Index for HMS 1&2 (75:25) delivered ARAG region increased by €3/mt ($3.50/mt) on Tuesday amid slow collections.
- Most European ferrous scrap exporters decided to raise collection prices to spur its inflow as availability of the material, especially prime grades, is limited.
- Trading activity in the bulk market was sluggish with Belgian and Dutch exporters estimating workable price levels for HMS 1&2 (80:20) cfr Turkey at $285-290/mt. (€1 = $1.17)
- Davis Index’s weekly north and south UK HMS 1&2 (80:20) dockside ferrous scrap indices remained unchanged for a third consecutive week on Sep 29.
- UK ferrous bulk processors are still holding out for directional cues from major seaborne trade routes, particularly to Turkey, with benchmarks unchanged for the past week.
- There appears to be increasing short-term downside price risk for dollar-denominated scrap prices given that the Turkish lira has depreciated 2.9pc against the US dollar since Sep 22. As a result, sentiment in the UK dockside has noticeably shifted from bullish to viewing the market move £5/mt lower within the next seven days.
- Attentions have diverted to settling monthly mill-yard negotiations with local smelters, touted at unchanged compared with August’s levels by some merchants.
- The weekly indexes for north and south UK OA (Plate & Structural) and north and south UK 5A/5C (frag feed) also remained unchanged over the same period on Sep 29. (£1 = $1.29)
- Davis Index’s weekly northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices both declined by €4/mt on Friday.
- Spanish ferrous scrap import prices softened further over the past week, largely tracking developments in major seaborne trade routes, particularly to Turkey.
- Some longs producers have scaled back output, though cement production, a lead indicator of construction activity, increased in August.
- The number of new domestic private construction projects has slowed significantly because of which, Spanish mills could negotiate modest discounts on small bulk ferrous scrap cargoes in response to relatively low production schedules.
- Spain only produced 696,000mt of crude steel in August, 32.5pc lower compared with the same month a year earlier. That said the figure will likely increase for September and October, following the restart of ArcelorMittal Sestao’s electric arc furnaces.
- Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded declined by €4/mt and €7/mt, respectively, on October 2. (€1 = $1.17)
- US East Coast and Houston dock collection prices for ferrous scrap have lost momentum over the past two weeks amid healthy material flow and reduced export movement.
- Dockside prices on the East Coast have fallen by about $5-10/gt since Sep 15, while Houston dock prices were relatively unchanged before they fell by about $10/gt last week. Some East Coast bulk exporters lowered collections for HMS 1&2 (80:20) to around $230/gt on Tuesday, but a few sellers with existing orders remain at $240/gt.
- Export activity has rested on lowered demand from Asian destinations as domestic flows have been meeting their requirements. However, buying is projected to accelerate in Turkey to fill the tonnage needs for October and November.
- In Boston, the weekly Davis Index for export yard HMS 1&2 (80:20) and P&S 5ft moved down by $7/gt delivered dock, while shredder feed slipped by $8/gt delivered.
- The weekly Davis Index for export yard buying prices in New York ticked down for HMS 1&2 (80:20) and P&S 5ft by $5/gt delivered, while shredder feed slid by $8/gt delivered.
- In Philadelphia, the Davis index for export yard collection prices of HMS 1&2 (80:20) declined by $4/gt delivered, P&S 5ft dropped by $3/gt delivered, and shredder feed fell by $10/gt delivered.
- The weekly Davis Indexes in Houston decreased by $6/gt for HMS 1&2 (80:20), while P&S 5ft moved down by $10/gt delivered dock. The shredder feed index dropped by $7/gt delivered.
- US West Coast ferrous scrap dock prices were flat in Los Angeles and Portland while adjusting down by $4-7/gt in San Francisco this week.
- A recent rumored US-sourced scrap deal to Turkey at $293/mt cfr on HMS 1&2 (80:20) from Puerto Rico indicated a decrease of $7/mt from the $300/mt cfr level that the grade held throughout September. The deal has been denied by some market participants and East Coast-based bulk sellers are maintaining firm offers near $300/mt cfr.
- Asian scrap buyers reduced their recent high trade interest seeking lower-priced domestic scrap as a temporary alternative in an uncertain environment. Asian scrap buyers are concerned over weak domestic steel sales, regional excess inventories of finished goods that could lead to aggressive price cuts, and profitability spread pressures on higher imported scrap prices.
- Bulk scrap traders in the EU, Latin America, and the US, however, are maintaining strong offer prices on limited scrap inventories and the belief that the present pause will be short-lived.
- Japan, a competing source for US-scrap, is expected to have mills ramp up production in October, which may support domestic prices that have remained unchanged for the most part in late September.
- The weekly Davis Indexes in Los Angeles and Portland were flat across all grades that include HMS 1&2 (80:20), P&S 5ft, and shredder feed.
- Domestic mills in the region increased scrap purchase prices by $20-25/gt during the September scrap buying week, compared to August prices. Last week, regional market participants expected mills in the Pacific Northwest to trade sideways to slightly up in October, but given the latest developments, mills could offer buying prices at $5-10/gt lower against September settled prices. The decline in mill price expectations is attributed to slower container export buys competing for inventories.
- Dock prices in Los Angeles are expected to decline by $10/gt in early October on weaker export demand and corresponding prices.
- In San Francisco, the weekly indexes decreased with HMS 1&2 (80:20) slipping by $7/gt and P&S 5ft declining by $4/gt delivered. Shredder feed also fell by $7/gt. The slight downward adjustments reflect the concerns about softening export prices in October, but sellers noted that docks have active orders to fill for immediate shipment.
- US containerized ferrous scrap indices decreased for the third consecutive week on the East Coast and declined for the second straight week on the West Coast.
- Higher-priced offers did not find many buyers amid uncertainty in their domestic markets and Asian buyers retreating due to the long holiday weekend.
- The weekly Davis Indexes in New York decreased across most grades with HMS1&2 (80:20) and #1 busheling declining by $5/mt, respectively, while P&S 5ft slipped by $3/mt. Shredded was flat with machine shop turnings the only grade to increase by $3/mt.
- Shredded scrap containers were heard with offers up to $280-290/mt fas. However, most deals were reported at $275-280/mt fas. Some sellers were unwilling to conclude deals on discounted prices in anticipation of a rebound despite lower inquiries and deals. Some buyers from India informed Davis Index of their need to proceed with higher-priced deals as they were not certain about prices softening soon.
- The Los Angeles Davis Indexes for #1 busheling and P&S 5 ft both slipped by $7/mt while HMS 1&2 (80:20) declined by $14/mt and shredded by $8/mt.
- Deals in LA began to soften in the week ending Sep 18 and have continued to decline at the beginning of October. Transactions, which were reported at around $265-268/mt fas in mid-September, have now slipped to $240-250/mt fas, down by $18-25/mt fas.
- Taiwan began to reduce buying activity last week and has remained subdued as businesses close for a national holiday from Oct 1-4. Those seeking containers are taking advantage of this opportunity to engage some inventories. However, several dealers are reportedly holding on to stocks and even buying at lower prices from those that found it necessary to sell due to cash flow issues.
- The Davis Indexes decreased this week driven by the transaction levels of the limited market activity, but several sellers indicated that market levels should be higher by $10-15/mt given the limited scrap inventories even at the docks.
- HMS 1&2 (80:20) deals declined more significantly this week compared to higher grades because of the absence of Taiwan buyers and a temporary realignment as Asian buyers assess their situation. However, P&S 5ft, shredded, and busheling indexes declined less as buyers have maintained an interest in better grades for improved melting at mills.
- Higher container activity is anticipated in mid-October and November as many Asian mills that remained on the sidelines in September are expected to return.
- Import destinations have delayed ferrous scrap buys on lower finished steel prices and concerns over China’s pricing fluctuations, which could see additional material on their shores. The focus on domestic growth and consumption of its own steel as well as imported material would support the recovery of Asian countries and regional prices in Q4 2020 and Q1 2021.
- The Davis Indexes in San Francisco decreased for HMS 1&2 (80:20) by $19/mt, #1 busheling by $6/mt, P&S 5ft by $13/mt, and shredded by $14/mt fas.
- In Seattle, the container indexes decreased by $3/mt for #1 busheling, by $15/mt for HMS 1&2 (80:20), by $6/mt for P&S 5ft, and by $5/mt fas for shredded.
- The prices of hot-rolled coil (HRC) are likely to trend south after restocking in October-November if the current downstream economic environment does not change.
- In the week ending Sep 25, Atlas, Nucor, Welded Tube, and other companies that consume flat-rolled steel announced the third round of tube price increases. However, the prices for steel beams in the US were flat for the week ended September 25 as Nucor did not join other mills’ efforts to increase prices on the product line.
- Additional price increases are having a limited effect on market participants. Moreover, buyers could get more access to flat steel with additional capacity expected online in the latter part of Q4 2020. The end of the quarter will have thus restored production from unplanned outages and restarts from planned ones.
- HRC prices on Sep 28 stand at $617-661/mt in the US, up $11-22/mt from $606-639/mt fob mill on Sep 16. In fact, HRC prices have moved up by about $170-190/mt since early August.
- Steel centers restocking and improved industrial production schedules supported finished prices in September with lead times increasing to 8-9 weeks in September from 3-4 weeks in August. Finished steel prices received support from higher scrap prices in September.
- Scrap inflows in September are materially better than those in August. Export demand softened on higher prices both at bulk and container levels. Turkey remained silent for several weeks while Asian buyers are planning cautiously considering softer billet prices, weak domestic finished steel prices, lower domestic scrap prices at times, and the cautious tale of China’s fluctuating prices on Asia.
- Opinions vary on the outlook for the scrap market in November. Some participants believe that mills could stall and hold prices in October, which will only make consumers pay up in the November market. Scrap flows at the end of Q4 may not keep up with mill melting demands in this scenario.
- On the other hand, other market participants are concerned about a lower November in a sideways or slightly up $10-20/gt October market. November outlook could soften due to fewer restocking orders on sufficient inventories, lower seasonal demand, continued weak economic recovery, and the uncertainty from the potential results of the US Presidential election in that month.
- Domestic ferrous scrap prices in Mexico increased for most grades due to higher demand from the automotive, manufacturing, and construction industries.
- In North Mexico, the weekly Davis Index HMS 1&2 (80:20) and machine shop turnings increased by MXN87/mt delivered Mexico consumer by MXN187/mt for P&S 5ft, and by MXN28/mt for shredded. #1 busheling fell by MXN13/mt delivered.
- Prices in the North are expected to continue rising due to low availability, a trader with operations on the border told Davis Index.
- The weekly Davis Indexes in Bajío increased for HMS 1&2 (80:20) by MXN338/mt delivered, for P&S 5ft by MXN150/mt, for #1 busheling by MXN125/mt, and for machine shop turnings by MXN450/mt. However, the index for shredded fell by MXN235/mt delivered.
- Scrap tags in the Bajío region could fall this month as buyers’ volumes get filled, two recyclers with operations in this area said, though the price range of the anticipated decreases remains unknown yet.
- In Central Mexico, the Davis Index for HMS 1&2 (80:20), machine shop turnings, #1 busheling, and P&S 5ft all increased by MXN25/mt delivered. Shredded, however, fell by MXN232/mt to MXN6,718/mt delivered. ($1=MXN21.68)
- Japanese ferrous scrap export prices fell this week since most Asian buyer countries slowed purchases amid weak finished steel demand and expectations of a further decline in prices.
- Domestic scrap prices trended flat amid slow demand. But a low scrap generation and collection rates cushioned prices from falling.
- Tokyo Steel has kept its purchase prices flat since the prior week. Japanese HRC prices were also under pressure due to a fall in iron ore prices and the availability of lower-priced material from China.
- In the Kanto region, the index for #2 HMS declined by JPY500/mt fas from a week ago.
- In the export market, the weekly index for Japanese #2 HMS dropped by JPY875/mt fob, #1 busheling (Shindachi) fell by JPY375/mt fas from the prior week.
- The weekly index for #1 busheling (Shindachi) fell by JPY125/mt fob with no deals heard.
- There were only a few HS export offers for Vietnamese buyers on Wednesday, and the index for the grade increased by JPY167/mt due to supply crunch. Shredded scrap prices were unchanged.
- Two Japanese bulk deals concluded for #2 HMS cfr Chattogram this week.
- The index for #1 HMS fell by JPY300/mt fas or by JPY250/mt fob Japan.
- Yards offered Japanese HMS 1&2 (50:50) at prices down by $5/mt from the prior week. The index for the grade decreased by $6/mt from the week prior and $12/mt from Sep 16 cfr Taiwan.
- The index for Japanese HMS 1&2 (50:50) dropped by $5/mt cfr Vietnam with few trades heard. ($1=JPY105.16)
- South Korean domestic ferrous scrap prices were flat this week as Chuseok or Korean Thanksgiving holidays halted trades. Some mid-sized mills also shut their EAFs amid holidays. Prices are expected to fall in the short term.
- Hyundai Steel, as well as some mid-sized mills, bought limited quantities of scrap since Japanese exporters were unwilling to meet present bid levels.
- Some Korean importers have been buying lower-priced Russian cargo to reduce input costs.
- The Davis Indexes for domestic Heavy A delivered Incheon and Pohang were unchanged.
- An unconfirmed bulk deal for US West Coast-origin ferrous scrap was heard this week with the material scheduled to arrive in November.
- The weekly Davis Index for containerized HMS 1&2 (80:20) declined by $8/mt cfr.
- Domestic scrap prices fell this week by KRW10,000/mt ($8.5/mt) del mill.
- The weekly Davis Index for P&S 5ft, #1 HMS, and shredded fell by $7/mt, $9/mt, and $3/mt cfr South Korea, respectively.
- South American suppliers offered HMS 1&2 (80:20) at prices $5/mt lower from the prior week. ($1=KRW1,164.18)
- Softening global markets weakened the ferrous market in Taiwan. Trading may remain thin for the next few days due to the Moon festival from Oct 1-4 and national holidays from Oct 9-11.
- The Davis Index for containerized US-origin HMS 1&2 (80:20) fell by $11/mt from Sep 17. Bids declined on the back of a fall in domestic scrap.
- Finished steel in Taiwan fell by TWD400/mt this week and Feng Hsin Steel lowered purchase prices for domestic HMS scrap by TWD3,00/mt or $10/mt.
- The weekly Davis Indexes for containerized P&S 5ft, shredded, #1 busheling and #1HMS declined by $7/mt, $5/mt, $10/mt, and $6/mt.
- The weekly Davis Indexes for domestic HMS 1&2 (80:20) in South and North Taiwan declined by TWD675/mt($23/mt) and TWD700/mt, respectively.
- Market participants are expecting bids to lower further due to national holidays next week. Bids for South American scrap declined by $5/mt from a week ago. ($1=TWD28.93)
- In China, Shagang Steel lowered domestic finished steel prices. The mill has also lowered its bids for domestic scrap. The weekly Davis Index for the grade fell by CNY80/mt from the prior week.
- Chinese mills focused on HRC exports as domestic demand slowed. Domestic scrap prices in China could remain on a downtrend in the coming days. ($1=CNY6.79)
- In the containers market, the weekly index for HMS 1&2 (80:20) settled unchanged.
- Mills are waiting for prices to decline further since the present finished steel price levels are unsupportive for imports.
- The index for Japanese HMS 1&2 (50:50) dropped by $5/mt cfr Vietnam with few trades.
- In the containers market, the weekly indexes for #1 busheling, shredded, and P&S 5ft were unchanged. Mills, including Formosa, lowered HRC prices by $10-15/mt this week to stay competitive. With a decline in their domestic market, Chinese mills have resumed exports at lower prices.
- In the bulk market, importers are still buying cautiously as international scrap prices trend down. More Vietnamese mills are exploring the Russian market for lower-priced bulk.
- Domestic scrap shortage and hopes of recovery in finished steel demand could drive scrap bookings in October.
- The weekly Davis Index for domestic HMS 1&2 (80:20) fell by VND1,62,500/mt ($7/mt) delivered South Vietnam.
- The auto sector is driving flat steel demand and imports, but the domestic output is yet to reach 100pc capacity.
- Vietnamese billet suppliers focused on exports with firm offers for October and November shipments. ($1=VND23,150.36)
- Indonesian mills focused on domestic scrap purchases this week. The implementation of new regulations that came into effect from Oct 1 kept buyers away from imports. The rules lack clarity. Thus, supplier countries diverted their attention to other Asian markets.
- Market participants expect prices to soften amid weak demand in the auto and infrastructure sectors.
- The weekly Davis Index for HMS 1&2 (80:20) fell by $5/mt cfr Jakarta. Limited offers were doled out in the market with no buying interest.
- The weekly Davis Index for P&S scrap rose by $1/mt cfr Jakarta.
- The indexes for #1 busheling and shredded fell by $5/mt and $4/mt cfr Jakarta, respectively.
- Indonesian billet imports could rise over the next couple of months as ferrous scrap imports have slowed. A decline in Iranian billet offers has weighed down South East Asian billet and ferrous scrap import sentiment.
- The weekly Davis Index for domestic HMS 1&2 (80:20) fell by THB300/mt ($5/mt) delivered Rayong mill inclusive of taxes.
- Sluggish finished steel demand this week led to limited ferrous scrap purchases by Thai mills. Traders sitting on high scrap inventory are distressed to find buyers.
- Imported billet prices were unchanged on a cfr Thailand basis. ($1=THB31.60)
- The weekly index for HMS 1&2 (80:20) dropped by MYR75/mt and MYR40/mt delivered western mills and eastern mills, including taxes, respectively.
- Market participants believe demand for finished steel is unlikely to rise anytime soon with delays in new infrastructural and real estate projects.
- A decline in bids for imported scrap prices reduced trades. Most Hong Kong and South Korean suppliers expect Malaysian ferrous scrap consumption to increase in the coming days due to the absence of demand from Indonesia. ($1=MYR4.16)
- Weak export markets and sluggish domestic rebar sales pulled down HMS scrap prices by $5-10/mt in India. Further indications of a drop in global scrap prices kept buyers cautious towards the end of the week. High-grade scrap remains unviable for many Indian buyers.
- Many medium and small-scale steelmakers have started lowering their output. Major steelmakers could raise prices for HRC by Rs1,000-1,500/mt. These price levels, however, are less likely to be accepted by the buyers.
- The daily Davis Index for containerized shredded fell by $2.88/mt cfr Nhava Sheva on Thursday. Since last Friday, the index dropped $2.96/mt. Prices dropped by a total of over $20/mt in a fortnight in line with weak domestic scrap prices.
- The weekly Davis Index for UK/Europe-origin HMS 1&2 (80:20) fell by $6/mt cfr Nhava Sheva. Supplies at some yards in the UK have improved on higher collection rates.
- Support from overseas markets, especially China, has also slackened. Faced with a lack of sales avenues, mills are dealing with a cash flow crunch. But with the domestic ferrous scrap availability increasing, they could get some respite, especially since it could have a bearing on input costs.
- Turnings scrap buying inquiries increased this week, and the index for the grade fell by $2/mt cfr Nhava Sheva from last week.
- On Thursday, the daily Davis Index for containerized US-origin HMS 1&2 (80:20) fell by $5.65/mt cfr Indian subcontinent.
- In the billet export market, activity was slow despite prices declining. Weak domestic sentiments held billet importers in SE Asia in a wait-and-watch mode. Golden Week Holidays could keep eastern and Southeast Asian markets silent.
- Indian domestic ferrous scrap prices remained firm on Thursday ahead of a long weekend on account of the Gandhi Jayanti holiday on Friday. Demand from mills is gradually picking up in the North, pulling HMS prices up.
- On Thursday, the daily Davis Index for HMS 1&2 (80:20) rose by Rs300/mt ($4.10/mt) del Mandi Gobindgarh, with a few trades heard at the index price.
- Mills in the eastern part refrained from buying due to low demand in their domestic markets. The bi-weekly index for HMS 1&2 (80:20) settled flat del Durgapur mills.
- The daily index for HMS 1&2 (80:20) on Thursday rose by Rs100/mt del Mumbai mills. A few trades were reported in Mumbai at the index price.
- Pakistani ferrous scrap prices were mixed after declining for two successive weeks. A couple of bulk deals in Turkey gave impetus to limited deals at slightly higher prices early this week, but most major mills stayed away from purchases as domestic steel demand continued to lag.
- The Davis Index for containerized shredded declined by $3.05/mt cfr Port Qasim. Prices showed a slight uptick early this week but dropped again on Thursday.
- The Davis Index for UAE-origin HMS 1&2 (80:20) cfr Port Qasim fell by $7/mt from last Friday.
- The Pakistani government is likely to announce measures to aid the steel industry’s recovery from the COVID-19 pandemic, which could increase the appetite for ferrous scrap by mid-October.
- Pakistan’s Agha Steel Industries (ASI) has signed MOU with a local wire rod manufacturer, Horizon steel, for the supply of refined low-carbon billet. It will supply 100,000mt of low-carbon billets worth approximately PKR10.5bn ($63mn) this year.
- The weekly Davis Indexes for P&S and busheling declined by $5/mt and $2/mt cfr Port Qasim, respectively.
- The weekly Davis Index for commercial Bala billet fell by PKR125/mt ex-works Punjab inclusive of local taxes.
- The index for G-60 rebar settled flat ex-works Karachi from last week. The demand for rebar has slightly improved as monsoon has subsided in many regions.
- Prices for Pure Q toke scrap equivalent to shredded were unchanged Demand for ferrous scrap is likely to improve in Pakistan next week as the market resumes post the month-end financial blues. ($1=PKR165.43)
- Bangladeshi ferrous scrap importers were buying only on need basis. Major mills focused on finished steel sales. Transportation activities were disturbed due to heavy rains and floods on the outskirts of Dhaka. Most steel mills focused on settling their utility bills and other statutory dues with September ending.
- The daily Davis Index for containerized shredded, Thursday, fell by $2.29/mt cfr Chattogram. Major mills are seeking government’s help to tide over losses incurred due to the pandemic as they believe demand is unlikely to recover before November.
- Two deals for shredded cargoes were reported this week at prices lower by $10/mt from a prior bulk trade in early September.
- On Thursday, the daily index for containerized US-origin HMS 1&2 (80:20) fell by $4.07/mt cfr Chattogram.
- Australian yards found Bangladeshi bids unviable.
- Trades were reported at prices $5-10/mt lower cfr Chattogram for Latin American HMS #1 this week.
- The weekly index for domestic billet settled unchanged. Market participants believe demand for rebar could take longer to recover to pre-pandemic levels, which pulled billet purchase prices down by BDT500-1,000/mt from a week earlier.
- The weekly Davis Index for rebar from medium steelmakers fell by BDT250/mt ex-works inclusive of VAT. Prices for rebar produced by small-scale mills were unchanged from the prior week.
- Prices for domestic shipbreaking scrap equivalent to P&S declined by BDT500/mt from the prior week. The weekly index for HMS 1&2 (80:20) dropped by BDT250/mt ex-yard from last Friday. ($1=BDT84.73)
- The weekly Davis Index for CIS basic pig iron dropped by $6/mt fob Black Sea on Friday amid lower demand.
- Business activity decreased in the CIS pig iron export market as Chinese importers paused bookings amid holidays in the Asian nation.
- US pig iron importers also stepped back, preferring to wait for the October domestic ferrous scrap market to settle before making further decisions.
- This week, the only transaction for CIS pig iron was fixed from Ukraine at $375/mt cfr Turkey. It should be noted though that Turkish mills are reportedly bidding even lower in the range of $360-365/mt cfr.
- The weekly Davis Index for CIS pig iron in Italy remained unchanged on Friday amid suspended trading. Negotiations are slow as Italian buyers are passive, however, CIS suppliers have kept their offers at $380/mt cfr.
- The weekly Davis Index for basic pig iron (BPI) decreased by $3/mt cfr New Orleans on Thursday as the latest offers remain at last week’s levels, though the most recent deal concluded slightly below proposals.
- The downtrend follows a BPI price growth of about $30/mt in September and around $50/mt over the past 60 days. The Davis Index for BPI was at $360/mt cfr Nola on Sep 3 and at $340/mt cfr Nola on Aug 6.
- The US market was quiet this week as buyers held off following a slowdown of BPI sales in Asia. Participants also await the domestic scrap trading to commence amid fading price sentiment, which could pull down BPI prices as well.
- The most recent BPI sale concluded late last week when the CIS sold a few cargoes at $387-390/mt cfr Nola. Offers this week for November and December shipment are at $390/mt cfr Nola, with no deals confirmed. Last week’s offers trended flat to up $5/mt compared with Oct 1.
- The Davis Index for nodular pig iron (NPI) imports remained unchanged as the supply of the grade is tight and Brazilian producers shifted focus to BPI production when Chinese demand was raised. Most recent offers for NPI were around $405-410/mt fob Brazil, which matches $430-435/mt cfr Nola, however, US buyers see the price near $400/mt cfr Nola.
- The weekly Davis Index for US hot briquetted iron (HBI) imports is flat cfr Nola. New offers or bids have not been reported for HBI due to lower demand.
- On Thursday, the daily index for sponge iron was flat del Mandi Gobindgarh and declined by Rs400/mt del Mumbai mill. ($1=Rs73.17)
India finished steel
- In Durgapur, the index for rebar declined by Rs1,250/mt ($17.07/mt) ex-works amid sluggish demand.
- Manufacturers in the region have decided to raise rebar prices by Rs300-400/mt ($4.09-5.46/mt) next week to pass on partial raw material price hike to end-users. The index for billet rose by Rs1,300/mt ($17.75/mt) ex-works Durgapur.
- In Chennai, the bi-weekly index for rebar dropped by Rs75/mt ($1.02/mt) ex-works amid thin trades. Prices are likely to soften further due to a lack of infrastructure and real estate projects. The index for billet rose by Rs300/mt ($4.097/mt) ex-works Chennai.
- The index for billet in Mumbai increased by Rs250/mt ($3.41/mt) from the previous Friday in-line with a rise in rebar prices coupled with steady demand. The index for rebar increased by Rs200/mt ($2.73/mt).
- In Raipur, the index for billet fell by Rs300/mt ($4.1/mt) from the previous Friday amid an uncertain market. The index for rebar declined by Rs400/mt ($5.47/mt) in the same period on sluggish rebar sales.
- In Mandi Gobindgarh, the index for ingot fell by Rs250/mt ($3.41/mt) with a similar decline in local scrap prices.
- In Gujarat, the bi-weekly index for billet was unchanged on Thursday from the previous week due to limited buying. The bi-weekly index for rebar fell by Rs100/mt ($1.36/mt).
- Indian shipbreaking scrap prices were flat this week amid steady demand from mills in Gujarat. The index for HMS attachments and Melting was unchanged on Thursday from Sep 24.
- A shortage of oxygen cylinders has slowed production activity across Alang, and shipbreakers are paying more to maintain continuity of their work, which is affecting their margins.
- The index for 4Ani and 8Ani declined by Rs400/mt ($5.46/mt) ex-Alang. The demand for steel plates has declined from end-users. The index for 1kg plates fell by Rs1,000/mt ex-Alang, and the index for 5kg declined by Rs350/mt ex-Alang.
- Shipbreakers are expecting prices to remain under pressure till the supply of oxygen gets back on track, however, there seems to be a sign of recovery in demand from the auto sector ahead of festivities.