- The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) dipped by $0.47/mt to $252.44/mt cfr on Friday.
- Turkish mills resumed ferrous scrap bookings just after the holidays with some producers completing their procurement for June shipments and others starting their July shipment purchases.
- Since Wednesday steelmakers purchased a minimum 300,000mt of ferrous scrap. Prices for HMS 1&2 (80:20) from the USA or the Baltic region varied in the range of $252-253/mt cfr Turkey.
- Daily domestic rebar spot prices climbed by TRY10-30/mt ($1-4/mt) across Turkey and settled at TRY3,270-3,320/mt ex-works, including 18pc VAT, on Friday.
- Other Turkish mills announced billet prices at $375-380/mt ex-works versus $375/mt ex-works earlier. Export billet rates were in the same range as domestic prices.
- Export rebar prices in the Turkish market remained in the range of $405-415/mt fob. ($1 = TRY6.83)
- The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region increased by €5/mt ($5.50/mt) to €195/mt delivered dockside on Tuesday.
- Dockside ferrous scrap prices in the Netherlands and Belgium resumed their uptrend after declining last week, as exporters raised collection prices amid higher prices fixed in the most recent sales to Turkey.
- The Davis Indexes for HMS 1 and bonus scrap in the ARAG region both increased by €5/mt ($5.50/mt) to €203/mt delivered dockside and €209/mt delivered dockside, respectively, on Tuesday. (€1 = $1.10)
- Davis Index’ northern Spain HMS 1&2 (80:20) ferrous scrap small bulk weekly index rose by €7/mt ($8/mt) to €222/mt cfr on Friday.
- Spanish mills were obliged to pay higher prices compared with the prior week to secure imported scrap cargoes despite a backdrop of flailing steel consumption and production.
- Moreover, tighter ferrous scrap supply availability among many bulk exporters, holding short positions, has been exacerbated by a recent flurry of fresh Turkish bookings over the same period.
- Furthermore, domestic steel consumption will be further impinged by Nissan Motor’s decision on May 28 to close its Spanish vehicle production plants in Avila and Barcelona.
- Davis Index’ weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices climbed £2/mt ($2/mt) to £138/mt and £135/mt, respectively, delivered dockside on Tuesday.
- Recent hikes in UK dockside ferrous scrap purchase prices ran out of steam over the past week, in tandem with developments in major seaborne benchmarks, with the market taking stock after having reached a resistance at around $250/mt for HMS 1&2 (80:20) cfr Turkey.
- According to a market participant, price movements will remain muted this week as the market is on the cusp of rolling into a new month next week and due to of the short working week in the UK because of a national holiday on Monday.
- One north European-based ferrous scrap supplier predicted $270/mt for HMS 1&2 (80:20) cfr Turkey in the coming weeks, a forecast possibly supported by the short position narrative than many exporters are rumoured to be holding.
- If the projection were to come to fruition, it would no doubt provide further short-term support to UK dock prices. However, the medium- to long-term narrative of a sustainable recovery in steel consumption remains the greatest concern and uncertainty for market participants. (£1 = $1.23)
- US East Coast dock collection prices remained relatively flat across grades and regional ports but increased in Houston.
- US domestic scrap is higher priced, in relation to export dock pricing, making it difficult for the export market.
- East Coast docks tried to maintain current collection price levels at around $190-205/gt for local HMS 1&2 (80:20), however, some sellers were offered $210/gt or more for remote material delivered to East Coast docks.
- The weekly dock price Davis Index in Boston for HMS 1&2 (80:20) decreased by $1/gt to $202/gt Boston delivered dock, while the same grade increased in New York by $1/gt to $201/gt delivered.
- The weekly Davis Indexes in Houston increased as docks sought to attract inventories. The HMS 1&2 (80:20) index increased by $7/gt to $211/gt delivered.
- The weekly West Coast dockside Davis Indexes for ferrous scrap were flat in Los Angeles and San Francisco with a slight uptick in Portland.
- In Los Angeles, dock prices continued unchanged since early April. Dock prices increased in Portland as a result of regional mill competition for the material. Domestic scrap in the region is priced higher than the dock alternative and domestic pricing is expected at a minimum to remain unchanged in June trading.
- In Los Angeles, the weekly Davis Indexes remained unchanged for HMS 1&2 (80:20) at $135/gt delivered dockside. The indexes in San Francisco also remained flat at $160/gt delivered dockside for HMS 1&2 (80:20) while the grade increased by $4/gt to $163/gt delivered Portland dock.
- Japanese domestic scrap prices are encountering a slight uptrend as steelmakers resume operations. The increase in export pricing could provide support for US sellers as Japan is a competing source for containerized scrap to Asian markets.
- Some sources report a slight $2-3/mt drop in containerized cfr prices on prime grades such as busheling and P&S 5ft in the latest transactions to Taiwan.
- Prices for US containerized ferrous scrap on both coasts rose for some grades and fell for others as buyers remained tentative and shifted grade preferences. The containerized market on the East Coast remains weak.
- Sellers on both coasts reported slightly lower deal prices on higher grades. Buying by mills depended on their needs and while some mills made lower bids compared to last week, others increased their bid price to secure shipments for specific grades.
- The weekly Davis Index in New York for #1 busheling decreased by $3/mt to $247/mt fas while the index for HMS 1&2 (80:20) rose by $6/mt to $221/mt fas.
- In Los Angeles, the weekly Davis Indexes increased on HMS 1&2 (80:20) by $3/mt to $207/mt. The weekly indexes for P&S 5ft and shredded remained flat week-on-week.
- The weekly Davis Indexes in San Francisco decreased for #1 busheling by $5/mt to $220/mt fas and increased for HMS 1&2 (80:20) by $1/mt to $197/mt fas.
- In Seattle, the Davis Indexes remained unchanged after an increase last week.
- Upward momentum is expected in early June as Asian buyers gain clarity. Higher Japanese scrap offers are also expected to support US scrap containerized prices as June approaches.
- Domestic ferrous prices increased for most grades in North Mexico and Bajío but decreased in the central area as steelmakers in the region reduced their scrap collection because of shortage of the material.
- Scrap shortage continues throughout Mexico but the country’s scrap industry anticipates an improvement in supply by mid-June, with price stability returning by the end of June.
- Mexico automotive, mining, manufacturing industries will restart completely by June 1, after a government-imposed shutdown to contain COVID-19 for about two months.
- In northern Mexico, the weekly Davis Index for HMS 1&2 (80:20) rose by MXN435/mt to MXN5,985/mt ($268.4/mt) delivered Mexico consumer on Friday.
- The weekly Davis Index in Bajío increased by MXN367/mt to MXN5,900/mt delivered Mexico consumer for HMS 1&2 (80:20) while the grade fell in Central by MXN287/mt to MXN5,038/mt delivered ($1= MXN22.29).
- Japanese ferrous scrap export prices rose by JPY1,000-1,500/mt for the second successive week. Japanese #2 HMS export prices moved up to JPY23,500-24,000/mt fob Japan.
- The Tokyo government lifted its state of emergency and a stimulus package is likely to be declared soon. Hopes of a recovery in demand kept suppliers optimistic.
- South Korean mill Hyundai did not place tender for steel scrap purchases. In the Kanto and Kansai area, prices for #2 HMS jumped to JPY22,500-23,000/mt fas Tokyo bay, up by JPY1,000-1,500/mt.
- Japan’s domestic ferrous scrap prices rose as steelmakers resumed operations this week. Tokyo Steel raised prices twice each effective from May 27 and May 29 by JPY1000/mt at Tahara plant and by JPY500/mt at other four plants for all grades of scrap.
- The index for containerised US-origin HMS 1&2 (80:20) rose by $2/mt to $230/mt cfr Taiwan on Friday. Trades for containerised US-origin HMS 1&2 (80:20) concluded flat at $228-230/mt cfr Taiwan.
- In South Taiwan, Feng Hsin Steel held domestic ferrous scrap purchase prices for HMS 1&2 (80:20) at NT$6,800/mt ex-mill and rebar prices unchanged at NT$13,800-14,000/mt del Taichung plant. Limited trades were reported amid ongoing rainy season and weak finished steel sales.
- Taiwanese steel mills continued bidding for lower-priced South American and Australian scrap to lower down the cost of production.
- In small bulk markets, Japanese #2 HMS was traded at $245-250/mt cfr Taiwan and HMS 1&2 (50:50) at $250-255/mt cfr Taiwan.
- The index for US-origin containerised shredded and HMS 1&2 (80:20) cfr Vietnam settled at $253/mt and $234/mt, up by $3 from the week prior. Deals of Australian HMS 1&2 (80:20) were heard at $235/mt cfr Haiphong.
- Formosa steel announced hike in HRC and other flat rolled product offers by $16/mt for July shipments however, prices remain lower than expected on competitive prices from India, Russia and other suppliers.
- Indonesian mills were majorly away from buying this week as Eid holidays are yet to end. Most Hong Kong suppliers of higher grades scrap cleared previous orders and there were no fresh offers. Indonesian mills could resume trades after June 2.
- US origin containerised shredded was offered at $255-260/mt cfr Jakarta. #1 HMS was traded at $240-245/mt cfr Jakarta. Offers for US-origin HMS 1&2 (80:20) were at $232-235/mt cfr Jakarta.
- South Korean mill booked a bulk cargo from Russia as bulk offers jumped sharply from the prior deal. A mill booked A3 scrap at $249-250/mt cfr South Korea.
- Hyundai Steel held domestic scrap prices flat KRW290,000/mt while most other buyers are in ‘wait-and-watch’ mode. Manufactures and automakers are expecting demand to improve as restrictions in many Southeast buyer markets easing.
- South Korean domestic scrap prices remain high amid falling generation rates. End-user demand though remains weak. The weekly Davis Index for domestic Heavy A settled at KRW295,000/mt ($237/mt) del Incheon, up by KRW5,000/mt.
- Chinese domestic ferrous scrap prices drop after rising in the early week. In the late week, Shagang Steel dropped bids for domestic #2 HMS (6-10mm thickness) by CNY30/mt to CNY2,530/mt del Jiangsu plant inclusive of the 13pc VAT.
- The weekly Davis Index for domestic HMS 1&2 (80:20) (below 20mm) settled at CNY2,650/mt ($372/mt), up by CNY50/mt inclusive of 13pc vat delivered to mill in eastern China on Tuesday.
- In the domestic market, the prices for billet remained in the range CNY3,220-3,260/mt ex-Tangshan mill.
- The Iron and Steel Industry association under the Federation of Thai Industries (FTI) expressed concerns over cheap Chinese steel imports being dumped in Thailand.
- With the likelihood of a demand slowdown in their domestic market, Chinese producers could dump excess steel in other markets, mainly Thailand.
- The weekly Davis Index for domestic HMS 1&2 (80:20) settled at THB7,800/mt ($245/mt) delivered Rayong inclusive of taxes, up by THB50/mt.
- A trader booked Australian origin HMS 1&2 (80:20) in containers at $235/mt cfr Thailand. Busheling was offered at $280-285/mt cfr Laem Chabang.
- US origin shredded was offered at $260-265/mt cfr Malaysia with bids still at $250/mt cfr Malaysia.
- The weekly Davis Index for domestic HMS 1&2 (80:20) settled at MYR920/mt ($211/mt) delivered western mills, up by MYR20/mt and the index for HMS 1&2 (80:20) delivered eastern mills settled at MYR960/mt inclusive of taxes, up by $25/mt from the prior week.
- Demand for imported ferrous scrap is likely to recover next week as Eid holidays have come to an end. Inventories with most mills are drying up with production picking up pace.
- In the coming week, activities are expected to pick up. Demand for steel in rural areas has dipped and is likely to be hurt further with farmers in some regions of Pakistan starring at economic losses due to the ongoing locust attacks.
- The daily Davis Index for US-origin containerized shredded settled at $283/mt cfr Port Qasim on Friday, unchanged from the prior day, but up by $4/mt from the prior week.
- On Friday, offers moved up to $285/mt cfr Qasim, though mills are running out of scrap and have resumed enquiries, they were hesitant to accept these levels, given the market volatility.
- The Davis Index for G-60 billet settled at PKR 93,500/mt cfr Qasim, down by PKR500/mt from the prior week.
- However, sales are expected to increase and prices to drop post Eid holidays with limited domestic scrap availability.
- Trades for imported ferrous scrap in Bangladesh remained quiet amid ongoing Eid holidays. Steel mills have sufficient inventories in hand also mills have booked bulk ferrous scrap cargoes before national lockdown announced on COVID-19 outbreak.
- The demand is expected to resume next week with most of the production activities would resume after returning of casual labourers who have left for their hometowns to celebrate Eid holidays.
- Many traders and importers were away from the markets with cyclone Amphan hit coastal areas and disrupted communication channels. Major steelmakers in Bangladesh are operating at 40-50pc capacity. Bank holidays issues with opening of new LC’s kept buyers away from bookings.
- In the container market, the Davis Index for shredded settled at $287/mt cfr Chattogram on Friday, up by $7/mt from the prior Friday.
- The Davis Index for shipbreaking scrap equivalent to P&S settled at BDT28,000/ mt ex-yard, up BDT500/mt from the prior week. Rebar offers from large steelmakers remained flat as they were unable to lower production costs.
- Indian ferrous scrap importers booked few HMS scrap cargoes this week. Demand is recovering as mills have started consuming their stocked inventories. Piled-up consignments at ports have almost cleared.
- Still, many mills are in a wait-and-watch mode due to limited availability of labourers and uncertain demand, especially since monsoon seasons are close. But a shortage of domestic scrap could encourage traders to take a position for July-August shipments.
- The Davis Index for containerised shredded settled at $280/mt cfr Nhava Sheva, unchanged from Thursday, but up by $7/mt from the prior week. Bids for shredded were at $270-275/mt cfr Nhava Sheva. But offers for the UK and European-origin shredded scrap in containers were at $285/mt cfr Nhava Sheva. Buyers were not keen to book at those prices.
- Mills in Mumbai have slowly resumed production with minimal output and are currently utilizing the available raw material inventories.
- With little or no trades, the Davis Index for HMS 1&2 declined by Rs720/mt to Rs20,950/mt del Mumbai mills on Friday.
- Hyderabad market reopened this week and mills focused on clearing their built-up inventory at discounted rates.
- The weekly Davis Index for CIS basic pig iron inched up by $1/mt to $295/mt fob Black Sea on Friday.
- CIS pig iron exporters stayed firm on their pricing because, after having sold significant tonnages of the material for July shipment, its availability is limited. The most recent deals were closed around a week ago for $322-325/mt cfr with customers from China.
- CIS pig iron suppliers have targeted a $320/mt cfr minimum with other outlets, but negotiations have been slow this week, with no bookings reported.
- The weekly Davis Index for CIS pig iron in Italy remained unchanged at $310/mt cfr on Friday, as buyers resisted higher prices and, in doing so, delayed their purchases.
- The weekly Davis Index for basic pig iron (BPI) increased by $8/mt New Orleans to $327/mt cfr Nola on Thursday, as new offer prices for scrap and steel keep rising. Market sentiment is slowly improving, but pig iron import activity is limited.
- Domestic ferrous scrap trading for June will likely begin next week, with prices poised to increase by at least $10-20/gt for prime grades because of tight supply. Prices are expected to either remain flat or increase by $10/gt for shredded and cut grades, however, mill buying activity is still sluggish. Prices for scrap alternatives are projected to increase.
- The latest BPI sales to the US occurred on May 7 and were priced around $310/mt cfr Nola from Brazil and CIS. Brazilian and CIS-origin producers offered material, which would be shipped in August, for $325-355/mt cfr Nola this week, but no sales have been confirmed. Higher sales prices will become fixed if demand for the material increases during June trading.
- The Index for nodular pig iron (NPI) imports increased by $10/mt from $365/mt cfr Nola to $375/mt cfr Nola, as offer levels this week increased to $380-390/mt cfr Nola, but sales have not been confirmed.
- The weekly Davis Index for US hot briquetted iron (HBI) imports rose by $10/mt from $223/mt cfr Nola to $233/mt cfr Nola. HBI index price is weighed based on producers’ shipping point bids and matched with delivered price variance for similar grades, but HBI import activity has been stagnant for several months.
- The daily Davis Index for sponge iron rose by Rs2,500/mt to Rs20,050/mt del Mandi Gobindgarh on Friday. Due to a shortage of scrap mills opted for sponge iron.