Еxport prices for major ferrous raw materials and steel products // week 26

04.07.2022 13:14
Theme: Overviews
Tonnage: Capesize,  Coaster,  Handysize,  Panamax,  Supramax

Steels and raw materials price dynamics, $/tonne
July 1 June 24 w-o-w
Iron ore fines, $/tonne
Brazil (Fe 64-65%), C&F China 132 - 133 131 - 132 1
Australia (Fe 61-62%), C&F China 115 - 124 112 - 115 6
Australia (Fe 58%), C&F China 103 - 104 104 -0.5
Steel scrap, $/tonne
Russia, 3A, FOB Baltic Sea 283 234 49
Russia, 3A, FOB Far East 337 - 353 397 - 413 -60
Russia, 3A, FOB Black / Azov Sea 315 - 320 269 - 274 46
Turkey, HMS 1&2 (80:20), C&F 360 - 395 310 - 349 48
Japan, HMS 2, FOB 356 - 363 380 - 390 -25.5
Square billets, $/tonne
Russia, FOB Black Sea 490 - 535 500 - 530 -2.5
Russia, FOB Far East - - -
Turkey, FOB 550 580 -30
Iran, FOB 500 - 510 500 - 520 -5
Slabs, $/tonne
Russia, FOB Black Sea 525 - 550 - -
Russia, FOB Far East 480 - 500 - -
Brazil, FOB 680 - 720 - -
Hot-rolled coils, $/tonne
Russia, FOB Black Sea 615 - 645 665 -35
Turkey, FOB 660 - 680 730 - 750 -70
China, FOB 690 - 710 680 - 700 10
Rebar, $/tonne
Turkey (8-32 mm), FOB Mediterranean Sea 660 - 680 610 - 660 35
Italy (8-32 mm), FOB ** 670 - 700 680 - 700 -5
Spain (8-32 mm), FOB ** - 850 - 880 -

* ISM estimates
** - €/tonne

Iron ore prices increased in China after authorities announced a significant improvement in the situation with the pandemic in the country and the easing of quarantine restrictions. Australian Fe 61-62% iron ore fines are now quoted at $115-124/t C&F (up $6/t) and Fe 58% iron ore fines at $103-104/t C&F (down $0.5/t). Brazilian Fe 64-65% iron ore fine are offered at $132-133/t C&F (up $1/t). Trade has declined as prices rises.

In Turkey, prices for imported steel scrap have risen markedly as mills need to replenish their stocks of raw materials. Suppliers are in no hurry to voice offers, trying to assess what level buyers are ready to accept. This week, a producer from the Iskenderun region contracted 30,000 t of HMS 1&2 (80:20) and 10,000 t of shredded scrap from Belgium at $368/t C&F. A plant from the Marmara region purchased 18,000 t of HMS 1&2 (80:20) with shipment from the Netherlands at $361/t C&F and 2,000 t of bonus scrap at $381/t C&F. Another company from the Iskenderun region has contracted HMS 1&2 (80:20) from the UK at $355/t C&F. A consumer from the Izmir region bought in Belgium 20,000 t of HMS 1&2 (80:20) at $329/t C&F, 10,000 t of shredded scrap and 10,000 t of bonus scrap at $344/t C&F. A plant from the Marmara region acquired HMS 1&2 (80:20) in Latvia at $340/t C&F and bonus scrap at $355/t C&F. Another company from Marmara has agreed with an American scrap trader a supply pf 25,000 t of HMS 1&2 (80:20) at $330/t C&F and 5,000 t of shredded scrap at $345/t C&F. In addition, Turkish importers expressed interest in small-tonnage shipments. They acquired three lots of HMS 1&2 (80:20) of a total volume of 10,000 t from Romania at $308/t C&F.

Trade is dull on the South Korean market of imported steel scrap. Quotes are on the decline. The indicative prices for Japanese scrap HMS 2 are hovering within $392-399/t C&F (down $30/t). There were no offers from US exporters, however, given the bearish market sentiment, the estimated price for HMS 1 scrap amounts to $400-410/t C&F (down $60/t). Russian exporters have also left the market. Russian 3A scrap is now estimated at $380-390/t C&F (down $60/t).

Prices for square billets of Russian production with shipment from the Black Sea have sagged by $2.5/t to $490-535/t FOB. Trade is weak. At the beginning of the week, suppliers were coming with offers, but then they left the market, citing high costs and lack of demand. Buyers are reluctant to replenish stocks given still weak demand for domestic finished steel products. At the same time, suppliers hope for a recovery in prices, but it will be difficult to achieve the increase, given the upcoming holiday period and the celebration of Eid al-Adha in the Middle East region.

Exports of squire billets from Iran have cut quotes by $5/t to $500-510/t FOB. Toward the end of the week, one of the key suppliers sold 40,000 t of 200-250 mm square billets to the Gulf countries at $520/t. Another trader sold 7,000 t of semi-finished products just under $505/t FOB with the supply to the same country.

In Turkey, square billet export trade is low. About 5,000 t of semi-finished products were sold to Egypt at $550/t FOB, while a week ago Turkish billets were quoted at $580/t FOB.

In the Southeast Asian market of imported square billets, trade is weak amid low activity in the local construction sector. However, prices have jumped up by $10/t to $580/t C&F Indonesia, while those have stabilized at $580-600/t C&F Philippines from ASEAN and $572-575/t C&F from Thailand. No deals have been reported this week.

Export quotes for hot-rolled coils from Russia have plunged by $35/t to $615-645/t FOB amid weak demand in foreign markets. In general, buyers from Turkey and Egypt can afford to buy HRC at the current price range, but they prefer to wait for further price cutbacks.

Export prices for Turkish rebar have increased by $35/t to $660-680/t FOB, which does not attract the attention of buyers. No deals have been heard of.

Quotes for Italian rebar have sagged by €5/t to €670-700/t FOB. Despite the reduced production, pressure on prices is accelerated by high stockpiles of finished steel products and weak demand in the Balkans and in the Mediterranean countries.