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Weekly Ferrous Update: Aug 30-Sep 3

Ferrous Market Update 09/03/2021

 

Turkey

  • The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) climbed by $0.61/mt on Friday following new deals from the Baltic region and Venezuela.
  • Turkish mills purchased at least five deep-sea cargoes on Sep 2 for September and October shipment. An Iskenderun-based integrated steel mill bought a cargo from Latvia with HMS 1&2 (80:20) at $444.50/mt cfr, and an Izmir-based mill secured a cargo from Russia (St Petersburg) with HMS 1&2 (80:20) at $445/mt cfr. One more Baltic exporter was heard to have sold a cargo with HMS 1&2 (80:20) to Turkey at around $445/mt cfr.
  • A Marmara-based mill also closed a deal with an international trader, for 26,000mt of HMS 1&2 (80:20) at $432/mt cfr along with 4,000mt of bonus material from St Petersburg. An exporter from Venezuela sold 25,000mt of HMS 1&2 (80:20) at $444/mt cfr to an Iskenderun-based mill.
  • Trading is expected to continue next week as Turkish mills require material for October shipment.
  • Spot rebar prices in the Turkish domestic market were unchanged on Friday. ($1=TRY8.31)

 

Europe

  • The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region dropped by €9/mt on Tuesday in a subdued export market.
  • Ferrous scrap exporters from the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) continued to cut collection prices after Turkish importers achieved deals at lower prices amid sluggish demand. A large European supplier sold HMS 1&2 (80:20) at $442/mt cfr to a Turkish mill late last week after difficult negotiations raised the initial bid, which was below $440/mt cfr.
  • Ferrous scrap collection in the EU declined further as dockside prices have been declining since the beginning of July. As a result, they fell by €58/mt. (€1=$1.18)

 

UK dockside

  • Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices declined by £12-15/mt ($17-21/mt) delivered dockside, respectively, on Tuesday. 
  • UK dockside ferrous scrap buyers extended recent price reductions over the past week, given that the spiralling bulk freight rates have started to eat into relatively narrower margins. A UK-based ferrous scrap trader commented that they had heard costs for Handymax and Handysize vessels jumping to $40-45/mt from the UK and northern Europe to Turkey. 
  • Meanwhile, most bulk exporters were uncertain about the timing of Turkish mills re-entering the market for the next round of negotiations. 
  • The weekly indices for north and south UK OA (Plate & Girder) fell by £12-15/mt delivered dockside while weekly north and south UK 5A/5C (frag feed) ferrous scrap indices were unchanged on the same basis (£1=$1.38)

 

US dockside

  • US East Coast and Houston collection prices for ferrous scrap trended mostly unchanged with soft downward movements on delivered prices lingering this week. Greater drops and price decrease announcements occurred last week at both the East Coast and Houston docks.
  • Supply continues to outpace scrap demand, which has put gradual downward price pressure on export and domestic prices over the past two months. Sellers are hopeful that export activity, which has been sluggish, will pick up in September when buyers begin booking October shipments.
  • The Davis Index for US HMS 1&2 (80:20) exports to Turkey showed a little movement on Tuesday compared to Aug 24. Longer-term declines are also tapering off as prices for this export grade had fallen by $15.84/mt on Tuesday compared to Aug 3.
  • Dockside sales for #1 HMS remained in the range of $330-360/gt per dock location and prior sales level. The grade has dropped about $10-20/gt compared to dockside levels from a month ago with variance per dock and starting price points.
  • In Boston, prices still sit below levels at other docks on the East Coast. The weekly Davis Index for both export yard #1 HMS and P&S 5ft fell by $2/gt delivered Boston dock. The shredder feed index ticked down by $1/gt delivered Boston export yard. 
  • The weekly Davis Index for export yard buying prices in New York were flat across all grades with #1 HMS, P&S 5ftand shredder feed all unchanged delivered New York dock. 
  • In Philadelphia, the Davis Index for export yard collection prices fell by $2/gt for #1 HMS delivered and P&S 5ft fell by $1/gt delivered Philadelphia dock. The index for shredder feed remains firmer holding flat. 
  • In Houston, the weekly Davis Index remained unchanged for #1 HMS and P&S 5ft delivered. The index for shredder feed inched down by $1/gt delivered Houston dock. Area participants note prices may go down by next week on weakened Texas domestic markets.
  • US West Coast dockside ferrous scrap prices were rangebound for the fourth successive week on Tuesday with an expectation that prices may hold at these levels next week as well. 
  • Los Angeles docks met with some resistance to lower prices as larger loads continued being purchased at prices above the index levels. Moreover, dock buyers continue to seek tonnage despite conveying the possibility of upcoming lower prices. Several large dealers conveyed that prices are likely to remain unchanged next week given tight global inventories and an anticipated increase in export demand in late September. 
  • US-based exporters continue believing that Asian markets will increase their buying interest as mills face fewer energy curtailments during autumn in their respective domestic markets, construction projects resume, vaccine adoption is expanded, and stimulus monies are further disbursed.
  • Domestic scrap prices in South Korea, Taiwan, and Vietnam declined this week given the soft domestic demand and a weakness in global scrap prices. 
  • Daily spot prices for 62pc FE iron ore have remained in the mid-$150/mt cfr North China levels. Chinese domestic demand is expected to support the Asian region’s exports in late 2021 into 2022 despite iron ore prices declining from above $220/mt highs. This expectation reflects the recent assurances by the Chinese government officials to maintain a growing, managed, and balanced-priced economy. The present pent-up demand as economies recover will continue fueling steel use and ferrous demand also. 
  • The seasonality and lockdown environment in various Asian countries has reduced demand for finished steel and, therefore, the input for ferrous inventories. The situation has also been exacerbated by supply chain issues, high finished steel prices limiting some steel processing buyers, and the chip shortage in the automotive industry. 
  • The weekly Davis Indexes in Portland continued flat with #1 HMS, P&S 5ft and shredder feed unchanged delivered export yard. Domestic mills are trending at minus $20/gt prior for the early September trading week. Several large Pacific Northwest mills have canceled the remaining August orders pointing towards a definite downtrend in ferrous prices in the upcoming week’s trades. 
  • San Francisco’s weekly Davis Indexes also continued unaffected with #1 HMS, P&S 5ft and shredder feed flat. 
  • In Los Angeles, the Davis Indexes were also unchanged for #1 HMS, P&S 5ft and shredder feed delivered export yard. 
  • Dock prices in the UK and EU slipped this week, but those on the US East Coast trended mostly sideways with a limited downtrend. Several market participants expect Turkish trades on HMS 1&2 (80:20) to decline to the $430/mt cfr Turkey range over the next few weeks but anticipate a rebound in November and December. The Davis Index for US-origin HMS 1&2 (80:20) fell by $2.09/mt to $447.76/mt cfr Turkey on Tuesday from $449.85/mt cfr on Aug 24. Bulk freights are also rising, which will continue placing pressure on ferrous margins and end pricing.

 

US domestic

Ferrous scrap trading commenced in the US on Sep 2 after some major Midwest mills bid $25/gt down for secondary grades and $50/gt less for primes against August settlements.

  • Some reports on Sep 1 indicated mills would begin buying early, ahead of the Labor Day holiday on Sep 6, if desired numbers were achieved. Area participants believe trade may move quickly and possibly settle most deals or at least price-to-be-determined contracts (TBDs) by Friday rather than drag business into the middle of next week. The downtrend on oversupply is motivating sellers to engage today and place material early in the cycle. 
  • A few participants have noted that apart from the Labor Day holiday, the observance of the Rosh Hashanah holiday through Sep 8 must also be kept in mind as it may also lead to delays. These upcoming holidays are contributing to the overall urgency this week as market participants prefer to avoid dragging settlements beyond this time. However, the full completion of the September trade cycle will inevitably carry into next week.
  • Secondary grades that include #1 HMS, P&S 5ft, machine shop turnings, and shredded continue to overhang the market. Moreover, several mill outages are presently taking place or on the horizon this fall, which may continue to pressure prices down until the end of 2021. The expectation of an upward market is waning for October, but some sellers continue to hope for an uptick towards year-end. 
  • Steel mill downtime is also projected to reduce steel production that has been churning away at or near 85pc capacity utilization since July, another element that does not help the scrap oversupply situation for now. However, ferrous scrap sales are facing some supply chain constrictions, freight and logistics issues especially concerning traffic backed up by the Nola port shut down due to Hurricane Ida. 
  • Logistics are also affecting the finished steel supply chain. Finished steel mills continue hiking prices on reinforced bar and flat steel. Hot-rolled (HRC) prices continue inching up at $2,072-2,116/mt ($1,880-1,920/nt), higher by $44-66/mt compared to a week ago. Some deals have been heard as high as $2,127/mt ($1,930/nt). Still, iron ore price declines, high inventories, and soft export market have deviated the trend for ferrous scrap prices. 
  • Based on the trending values, prime grades will revert to pre-June levels and give back gains made over the past three months that were led by the semiconductor chip shortage and related automotive industry slowdowns.
  • The updated numbers will mean #1 busheling averages will drop to approximately $595/gt delivered Detroit consumer and about $580/gt delivered in Chicago. Shredded will fall to $460/gt delivered Detroit mill while Chicago shredded could end near $455/gt delivered.
  • The Southeast may encounter slightly more muted losses on prime grades such as #1 busheling given the price erosion last month, but some as far as Texas are reporting the possibility of slightly higher losses than $25/gt on cuts and shredded due to high scrap inventories in some regions. 

 

 

US containers

US containerized ferrous scrap continued mostly rangebound on the West Coast but declined on the East Coast. The Los Angeles area made limited gains as prices ticked up across all grades, but San Francisco and Seattle remained rangebound, absorbing small losses in some trades this week.

  • The New York weekly Davis Index faced declines after achieving gains in the prior week. The #1 busheling index fell by $4/mt fas, canceling the rise of $5/mt last week. P&S 5ft and shredded declined by $6/mt and $5/mt, respectively. HMS 1&2 (80:20) and turnings declined the most by $12/mt and $11/mt fas, respectively. Several buyers, especially, with destinations to India and Pakistan, reported a sharp decline in buying prices in fas terms on these two grades this week.
  • Import offers are facing low user demand in India, with some regions experiencing lower domestic scrap prices as others have begun to increase on limited supplies. This is also the case with sponge iron where some regions are facing price erosion, some are unchanged, and others are beginning to rise.
  • Buyers from Pakistan, Bangladesh, and India are relatively muted and sellers continue with expectations of a returned surge in scrap interest after the lockdown, holding prices above bidding levels.
  • The weekly Los Angeles Davis Indexes ticked up in the midst of declining containers off the East Coast and lower bids on US domestic scrap during the early September trading week. The index for #1 busheling was unchanged and shredded decreased by $2/mt fas. P&S 5ft trended unchanged again while HMS 1&2 (80:20) grew by $4/mt fas with some reporting deals slightly over $400/mt fas. Low container availability, port backlogs, and high freight prices continue to plague the containerized market.
  • Japan’s Tokyo Steel reduced domestic ferrous scrap prices at one plant while maintaining other locations as unchanged. The market is showing uncertainty due to various lockdowns in Asia including Japan, due to COVID-19 pandemic concerns.
  • The San Francisco Davis Indexes for #1 busheling, P&S 5ft and shredded remained unchanged. HMS 1&2 (80:20) declined slightly by $2/mt fas.
  • In Seattle, the Davis Index for #1 busheling continued flat as HMS 1&2 (80:20) dipped by $1/mt fas. Shredded and P&S 5ft was unchanged.
  • The US-origin HMS 1&2 (80:20) index dropped by $4.75/mt cfr Turkey this week on Thursday from Aug 26. The index had recorded a loss of $4.38/mt last week.
  • September ferrous trading in the US, which began today has dampened prices on both coasts. On the East Coast secondary grades such as P&S 5ft and shredded are heard down by $25-30/gt against August settled prices in initial bids. On the West Coast, mills are heard negotiating on the same grades at prices down $10-20/gt against August settled prices.
  • The oversupply on the East Coast on limited export activity has dampened prices both in containers and bulk. West Coast sellers are noting a continued interest from some northern Mexican mills seeking imported ferrous scrap, though with the advent of lower prices in Texas and the Southwest, the higher prices willing to be paid by Mexican firms, in some cases $10-20/mt above Asian buyers, are under pressure.

 

Mexico

  • Mexico’s domestic ferrous prices continued to trend down this week amid rising imports of the material from the US West Coast and steep declines in the US domestic ferrous scrap market that began trading on Thursday.
  • Several buyers in the Mexican scrap market are closely following the progress of the US domestic ferrous scrap trading for September, which seems to be showing all signs of settling at $50/gt down on prime grades like #1 busheling and $25-30/gt down on secondary grades such as #1 HMS, P&S 5ft, and shredded, against August settled prices.
  • Ferrous scrap prices in Mexico fell by an average of MXN209/mt ($10.49/mt), with the most pronounced decreases in the North Zone, where the most noticeable drop was seen in the P&S 5ft weekly index which dropped by MXN388/mt to MXN11,248/mt delivered Mexico consumer.
  • The weekly Davis Index in Northern Mexico for #1HMS decreased by MXN234/mt delivered Mexico consumer on Friday, P&S ft5 fell by MXN388/mt delivered and shredded went down by MXN225/mt. Machine shop turnings decreased by MXN212/mt delivered and #1 busheling prices fell by MXN175/mt delivered on Friday.
  • In Central Mexico, the weekly Davis Index for #1HMS went down by MXN250/mt delivered Mexico consumer on Friday, while P&S 5ft fell by MXN250/mt delivered. Shredded decreased by MXN250/mt delivered, machine shop turnings fell by MXN200/mt delivered, and #1 busheling went down MXN200/mt delivered today.
  • Bajio Mexico’s weekly index for #1HMS fell by MXN60/mt delivered Mexico consumer on Friday, while P&S 5ft decreased by MXN417/mt delivered. Shredded went down by MXN33/mt delivered, while machine shop turnings decreased by MXN104/mt delivered Mexico consumer and #1 busheling feel MXN150/mt to delivered on Friday. ($1=MXN19.92)
  •  

Japan

Tokyo steel cut its ferrous scrap purchase prices by JPY500/mt ($4.54/mt) at Utsunomiya plant, effective Sept 3. Bids at the rest of the steel plants remain unchanged.

  • HMS #2 bids at JPY48,500/mt ($442.12/mt) del Tahara, JPY50,000/mt del Okayama, JPY48,500/mt del Kyushu, JPY47,500/mt del Utsunomiya and JPY48,000 del Takamatsu.
  • Japan is currently under a lockdown until Sept 12, with the emergency measures imposed in Tokyo and other areas to curb the spread of the COVID-19 pandemic. 
  • The weekly Davis Index for #2 HMS, Wednesday, dropped by JPY3,000/mt ($27.19/mt) fob and fas Japan.
  • The weekly Davis Index for Japanese P&S 5ft (small bulk) settled flat cfr China port on Wednesday. No inquiries were heard during the week.
  • The weekly index for the #1 busheling (shindachi) settled down by JPY1,500/mt fob Japan and down by JPY500/mt fas Japan.
  • The weekly Davis Index for shredded down by JPY1,000/mt and the index for HS down by JPY1,250/mt fas Japan. 
  • The index for Japanese HMS 1&2 (50:50) fell by $5/mt cfr Haiphong.
  • The index for Japanese HMS 1&2 (50:50) settled flat cfr Taiwan.  
  • Export prices for Japanese scrap dipped due to decreased overseas demand. 

($1=JPY109.95)

 

 

 

South Korea

The weekly Davis Index for domestic Heavy A dropped by KRW12,500/mt ($10.81/mt) del Incheon and by KRW5000/mt($4.32) del Pohang. 

  • The weekly Davis Index for domestic Light A on Tuesday was flat del Pohang. 
  • Demand for domestic scrap is currently low in sync with the weakness in global steel prices.
  • The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, rose by $2/mt cfr South Korea.
  • The weekly Davis Index for P&S 5ft, #1 HMS and shredded are up by $2/mt each cfr South Korea. ($1=KRW1157.40)

 

Taiwan

The weekly Davis Index for domestic HMS 1&2 (80:20) dropped by TWD300/mt($10.85) del northern mill and del southern mill.

  • Feng Hsin Steel slashed local scrap prices by TWD300/mt ($10.85/mt) for low grade and TWD300 ($10.8) for turning and oversized #2 HMS.  
  • The weekly Davis index for HMS 1&2 (50:50) is flat cfr Taiwan.
  • Ferrous scrap prices improved due to increasing freight costs and shortage of containers. 
  • The weekly Davis Index for containerized #1 HMS and #1 busheling rose by $5/mt each cfr Taiwan. 
  • The daily index for shredded and P&S 5ft rose by $5/mt each cfr Taiwan, respectively, from the prior week. 
  • The daily index for HMS 1&2 (80:20) Friday increased by $1/mt cfr Taiwan port from a day ago. ($1=TWD27.64) 

 

 

China

The weekly Davis Index for HMS 1&2 (80:20) remained unchanged, delivered China consumer on Tuesday. Strict production cuts have lowered the demand for ferrous scrap in China. 

  • On Friday, the daily spot prices of Fe 62pc iron ore recovered to $145.05/dmt cfr North China, up $5/mt in a day. Domestic finished steel spot prices in China recovered by CNY50-100/mt on Friday amid a slight improvement in demand.
  • The daily domestic billet prices in China, Friday, were rose CNY40/mt to CNY5,060/mt ($785/mt) ex-Tangshan inclusive of VAT. Billet prices in China recovered by CNY110/mt from last Friday. 
  • Offers for imported billet, Friday, recovered to above $685-690/mt cfr China from Southeast Asian supplier. From India, billet export offers targeted above $610/mt fob basis amid lower realization in the domestic markets. ($1=CNY6.46)

 

 

Vietnam

The weekly Davis Index for HMS 1&2 (80:20) in Vietnam dropped by VND46,622/mt ($2.05/mt) delivered southern mill.  

  • The weekly Davis index for containerized #1 HMS, Thursday, rose by $7/mt cfr Vietnam. The weekly index for shredded and P&S 5ft rose by $7/mt cfr Vietnam. 
  • The weekly index for #1 bushelling rose by $7/mt cfr Vietnam port. 
  • The weekly Davis index of HMS 1&2 (80:20) went by $7/mt cfr Vietnam port from the prior week. Few deals heard.
  • Vietnam will be under COVID-19 lockdown until Sep 15 and demand is expected to remain weak. Freight charges from Japan to Vietnam is $60 for 5kmt. 
  • Vietnam has national holidays till Monday for Independence Day celebrations, which means it could be fairly quiet there. ($1=VND22,749)

 

 

Indonesia

Indonesia’s lockdown to curb the spread of COVID-19 has been eased in certain areas of Java and Bali, Greater Jakarta, Bandung, and Surabaya. Domestic scrap prices are still competitively priced against imported scrap.  

  • The weekly Davis index for P&S 5ft rose by $10/mt Indonesia port. 
  • The weekly Davis Index for shredded rose by $10/mt while the index for #1 busheling jumped by $12/mt cfr Indonesia. 
  • Indonesia’s heavily restricted in terms of import regulations which makes it more difficult to trade, sources said. ($1=IDR14,263.81)

 

 

Thailand

The weekly Davis index for domestic HMS 1&2 (80:20) settled up by THB26/mt ($0.81/mt) del Rayong mill.

  • The country could ease lockdown and other COVID-19 measures by Sept 1. ($1=THB32.54)

 

 

Malaysia

The weekly Davis Index for HMS 1&2 (80:20) settled flat del eastern mill and del western mill. 

  • The country is currently under lockdown due to increased COVID-19 cases. ($1=MYR4.15)

 

India 

  • Indian imported ferrous scrap prices were pressured by a decline in rebar sales. Rebar prices of induction furnace mills dropped by upto Rs1,200/mt in major markets, including Mumbai. Also, the improved availability of domestic ferrous scrap has affected importers’ buying appetite. 
  • Sellers were unwilling to close deals and held materials as they await clarity on potential freight rate hikes. 
  • In absence of buying interest and on lagging bids, the daily Davis Index for containerized shredded, Friday, settled unchanged cfr Nhava Sheva. The index was down by $3.75/mt from last Friday. 
  • The daily Davis Index for UAE-origin containerized HMS 1&2 (80:20) inched up on Friday by $2/mt. The index was down by $5/mt from prior Friday. With the COVID-19 situation appearing to be a bit under control, hopes of active trades emerged in the market supported by the receding monsoon. 
  • The daily Davis Index for US-origin containerized HMS 1&2 (80:20) was unchanged on Friday. The index dropped $3.75/mt following softening prices on the US east coast on fob basis. 
  • The Davis index for containerized P&S cfr Nhava Sheva, was down $5/mt, while the index for #1 busheling dropped by $3/mt from Aug 27. Inquiries for prime grades remained scarce as most mills found it unattractive. ($1=Rs72.99)

 

 

India domestic

Domestic Ferrous scrap prices rose this week amid tight supply. Mills were seen buying on a need basis as domestic demand remained low. The daily Davis Index for HMS 1&2 (80:20) rose by Rs500/mt ($6.84/mt) del Mumbai mills and the same index rose by Rs400/mt ($5/mt) del Mandi Gobindgarh.

 

Pakistan  

  • Imported ferrous scrap prices in Pakistan stabilized and showed a marginal recovery from the prior week. 
  • Domestic steel and scrap prices continue their uptrend despite slow demand due to the depreciation of the local currency. Sentiments for imported raw materials turned shaky as the Pakistani rupee slipped below its 11-month low to hit PKR167.19 on Friday against the US dollar. Last Friday, it was at PKR166.5. 
  • The daily Davis Index for containerized shredded, Friday, rose by $1/mt cfr Qasim and the index gained $4/mt from prior Friday. Some deals on week’s close were confirmed in the range of $525-528/mt cfr Qasim. Offers were firm on Friday anticipating another round of freight hikes.
  • The daily Davis Index for UAE-origin HMS 1&2 (80:20) was unchanged Friday cfr port Qasim. The index dropped by $5/mt from Aug 27. Trades for UAE-origin mixed #1 HMS and P&S were reported at $500-505/mt cfr Port Qasim. 
  • The daily index for US-origin HMS 1&2 (80:20) settled flat on Friday and was lower by $2.5/mt from Aug 27. 
  • The Davis Index for P&S 5ft inched up by $2/mt from the previous Friday cfr Qasim while the index for #1 busheling rose by $4/mt. 
  • Lower sales volumes pressured local rebar prices despite a hike in branded rebar’s asking prices amid weak construction demand. 
  • The weekly Davis Index for rebar settled at PKR177,500/mt ($1,061/mt) ex-works Karachi, up PKR5,500/mt on Friday and the index rose by the same ex-works Punjab from Aug 27. 
  • The weekly index for domestic Bala billet, Friday, settled unchanged ex-works contrary to the market’s expectation that currency depreciation will push prices higher. The weekly Davis Index for G-60 billet rose ex-works Punjab up PKR500/mt. 
  • The weekly index for Art Q toke scrap (equivalent to a mix of HMS and P&S) increased by PKR500/mt ex-yards Punjab while Pure Q toke scrap (equivalent to shredded) rose by PKR250/mt ex-yard Lahore, respectively, amid tight supply.
  • Demolition activities in the Gadani were slow. Ship recyclers are waiting for a decline of at least $20-25/ldt to resume trades to average out their buying prices. ($1=PKR167.19)

 

Bangladesh

  • Mills in Bangladesh lowered bids for imported ferrous scrap as steel sales in the retail markets were subdued due to the usual monsoon lull. Unable to lift finished steel selling prices mills are in a tight position after paying record high for their bulk ferrous scrap purchases in pre-monsoon bookings. 
  • Despite low demand, a potential hike in containerized freight rates, especially for shipments from the US west coast, could increase offers further. Trades were reported by only a few mills with low inventories.  
  • Following small quantity deals for shredded, the daily Davis Index for containerized shredded, Friday, inched up by $2.5/mt cfr Chattogram. The index recovered by $2.5/mt from Aug 27. 
  • From mid-September, steel demand is expected to gain momentum and drive restocking for imported ferrous. 
  • In the bulk market, despite a drop in prices to Turkey, supplier yards resisted lowering prices for Bangladesh. Mills resumed inquiries for bulk cargoes over containers amid tight supply but are unwilling to make purchases due to an offer-bid mismatch of over $20-25/mt.  
  • From prior Friday, the Davis Indexes for P&S 5ft and #1 busheling inched up by $2/mt as deals for the UAE origin P&S reported at index price.
  • Mills opted for domestic ship breaking and melting scrap for their immediate requirements and managed to delay imports. The weekly index for ship scrap equivalent to P&S fell by BDT500/mt ex-yards. For ship plates, the asking price dropped BDT1,000/mt from the prior Friday. 
  • The weekly index for rebar from large-scale mills declined by BDT500/mt ex-works while those for medium scale fell by BDT750/mt. Small-scale mills lowered rebar prices by BDT1,000/mt. ($1=BDT85.05)

 

Metallics

 

US/CIS

The weekly Davis Index for basic pig iron (BPI) dropped by $13/mt cfr New Orleans port on Friday amid falling sale prices for the latest transactions, while the CIS BPI index declined by $14/mt fob Black Sea.

  • Three heard deals were concluded at $525-535/mt cfr Nola for CIS and Brazilian material late last week. Suppliers accepted lower prices due to the high availability of BPI. Hurricane Ida has also impacted the Nola port causing loss of power, shipment, and unloading delays.
  • The Davis Index for nodular pig iron (NPI) imports was flat at Nola as offers remain firm on limited supply. US hot briquetted iron (HBI) imports are unchanged at Nola on low activity.
  • This week, Brazilian exporters sold two cargoes of BPI to China at $530-540/mt cfr. Brazilian suppliers were also heard to be negotiating with Turkish mills, which were bidding $525-535/mt cfr, while offers were reported at $540/mt cfr. Turkish mills were looking for the material for September shipment.
  • CIS BPI exporters received inquiries from Turkish mills and two sales were heard at around $530/mt cfr Marmara and $538/mt cfr Iskenderun.
  • Demand for BPI improved in Italy with bids in the range of $520-525/mt cfr and offers at $540/mt cfr. As a result, the weekly Davis Index for CIS BPI in Italy dropped by $14/mt cfr on Friday. A Russian supplier sold two cargoes (10,000mt in total) to Western Europe at around $570/mt fob Baltic Sea.

 

 

 

 

India

The index for sponge iron prices declined by Rs100/mt ($1.36/mt) del Mumbai mills and the index declined by Rs300/mt ($4.10/mt) del Mandi Gobindgarh from the prior week amid low demand from steelmakers. ($1=Rs72.99)

 

India semi-finished and finished steel

  • In Raipur, the index for billet increased by Rs400/mt ($5/mt) ex-works from the previous Friday due to higher sponge iron prices. 
  • In Mandi Gobindgarh, the index for ingots was up by Rs400/mt from the previous Friday in line with the rise in local scrap prices.
  • Indian primary steel mills like SAIL/ RINL and JSW have rolled over rebar prices for September deliveries, while JSPL did a minor price correction. ($1=Rs72.99)

 

 

Shipbreaking weekly

Shipbreaking scrap prices were largely flat this week as demand remained low and the supply of scrap remained tight.

  • The Davis Index for HMS attachment and Melting, Friday, settled flat to Rs36,700/mt and Rs35,700/mt ex-Alang, respectively, from prior Friday.
  • The index for 14Ani rose by Rs200/mt ex-Alang from the prior week. 
  • Demand for ship plates also remained low and the index for 5kg plates settled flat at Rs41,500/mt ex-Alang on Friday.

 

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