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.
Spreads between US domestic ferrous scrap prices in the south and north are the widest in over a year, highlighting a broader shift as southern US electric arc steelmaking capacity grows.
US recycler Alter Trading is positioned to acquire Wisconsin-based United Milwaukee Scrap (UMS) via auction after UMS entered receivership as part of liquidation proceedings.
Domestic supply of ferrous scrap in Ukraine remained below steelmakers' requirements, despite the introduction of a higher scrap export duty in April, driving mills to seek seaborne material.
Kansas-based Allmetal Recycling has acquired Glickman Metal Recycling in a move to add a shredder to its operations and deepen its aerospace footprint in the region.
Steel Authority of India Ltd (SAIL) - a govt. owned steel producer conducted auction for around 4,100 MT steel grade pig iron today from its Rourkela Steel plant (eastern India). The auction received good response with around 80% of the material offered got booked at base price.
SteelMint learned from industry participants that imported scrap offers to South-East Asia have slightly increased this week, after observing a sharp hike in the previous week.