IRON and STEEL
Scrap & Recycling
Steel Authority of India (SAIL) recently conducted auction from its Bhilai Steel plant for defective steel products on 1st Jul'19. Out of 44,685 MT steel put up for auction, only 10,480 MT (23.45%) was sold. Bids for billets lowered by INR 100-200/MT against last auction. Bids for billets were reported at INR 27,300-27,650/MT (ex-Bhilai).
As per participants, bidders were interested to procure material as per the requirement rather to book in bulk due to uncertain market directions where prices of substitute commodities have continued downtrend. This resulted in limited participation in tender & cautious buying.
Steel grade pig iron is considered as the substitute commodity against melting scrap whose prices drifted down by INR 700/MT W-o-W & INR 2,000/MT M-o-M, as per price assessment made by SteelMint.
Whereas, local melting scrap (HMS 80:20) & end cutting prices fell by around INR 500-700/MT on weekly basis & INR 2,000-2,500/MT on monthly basis amid weak demand in finish steel.
China's ferrous scrap prices have risen to new 2019 highs, as high utilisation rates for electric arc furnaces (EAFs) and new restrictions on imports took effect from 1 July.
SteelMint learned from industry participants that Indian market has remained less viable for scrap imports for yet another week. Offer levels remained rangebound in very limited trades reported so far.
As per updates received, in a recently concluded purchase, South Korean EAF steelmaker, Dongkuk Steel has booked 10,000 MT of A3 grade scrap from Russia at USD 287/MT, CFR South Korea. This price is around USD 7-8/MT less than the last contract for Russian scrap by South Korean steelmakers, which was signed for USD 294-295/MT, CFR in June’19.
This week CIS billet export market remained slow witnessing less deals amid disparity between bids & offers. According to market sources report to SteelMint, current offers to SE Asia are at USD 455-460/MT CFR however buying interest is seen at USD 445-450/MT, CFR SE Asia levels. Prices have softened by USD 5-10/MT against last week.
South Korea billet exports in Q2CY’19- South Korea’s billet exports remained stable on quarterly basis at 0.1 MnT since last two quarters in CY19.
Chilean lawmakers have unanimously approved changes to a law that forces state-own Codelco, the world’s largest copper producer, to transfer 10% of its annual export sales to the country’s armed forces.