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Export prices for major ferrous raw materials and steel products (TEXT ADDED) // week 46

21.11.16
13:40

November 18 November 11 w-o-w
Iron ore fines, $/tonne
Brazil (Fe 64%), C&F China 85 - 86 91 -5.5
Australia (Fe 61.5%), C&F China 71 - 72 66 - 79 -1
Australia (Fe 58%), C&F China 62 67 -5
Steel scrap, $/tonne
Russia, 3A, FOB Baltic Sea 250 - 260 250 - 251* +4.5
Russia, 3A, FOB Far East 253 - 258 243 - 248 +10
Russia, 3A, FOB Black / Azov Sea 230 - 245 233 - 240* +1
Ukraine, FOB Black / Azov Sea 225 -238 228 - 238* -1.5
Turkey, HMS 1&2 (80:20), C&F 255 - 275 260 - 264 +3
Japan, HMS 2, FOB 225 - 235 230 - 244* -7
Pig iron, $/tonne
Russia, FOB Black / Baltic Sea 310 - 325 - -
Ukraine, FOB Black Sea 305 - 320 - -
Square billet, $/tonne
Russia, FOB Black Sea 390 385 - 390 +2.5
Russia, FOB Far East 385 390 -5
Ukraine, FOB Black / Azov Sea 390 385 - 390 +2.5
China, FOB 370 - 385 385 - 400* -15
Cast slabs, $/tonne
Russia, FOB Black / Baltic Sea 390 385 - 390 +2.5
Russia, FOB Far East - 385 - 390 -
Hot-rolled coil, $/tonne
Ukraine, FOB Black / Azov Sea 470 470 =
Russia, FOB Black Sea 480 480 =
Russia, FOB Baltic Sea 475 470 - 480 =
Russia, FOB Astrakhan 470 470 =
China, FOB 460 - 470 465 - 475 -5
Rebar, $/tonne
Ukraine (12-25 mm), FOB Black Sea 415 415 =
Turkey (8-32 mm), FOB Mediterranean Sea 430 - 445 430 - 445 =
China (16-25 mm), FOB southern ports 430 - 450 420 - 450 +5

* ISM estimates

Iron ore quotes have dropped in China in mid-November due to sluggish demand for the commodity, accompanied by falling prices for finished steel products. Moreover, iron ore stocks in Chinese ports have reached the annual maximum of 111.35 million tonnes as of November 18. Australian Pilbara Fe 61% iron ore fines have been acquired at $71.59-72.09/t C&F Qingdao. Newman Fe 63% product of a similar origin is available at $74.78/t on the same basis. Some 85,000 t of Carajas Fe 65% fines have been purchased at $87.75/t C&F Qingdao.

***

The demand for imported steel scrap has weakened in Turkey. The buyers have reduced the purchases while monitoring the market and trying to estimate the possible consequences of a decrease in prices for iron ore and semi-finished products in China. Only four deals have been signed in the region this week. Some 10,000 t of scrap HMS 1&2 (90:10) and 20,000 t of shredded scrap of the US production have been acquired at around $278.5/t C&F Iskenderun. A 30,000 t mixed lot of the cargo from the Netherlands has been purchased at $275/t on the same basis. A company with assets in Marmara and Iskenderun has bought 30,000 t of German scrap of various types at $275/t C&F. Another buyer has paid $275/t C&F Karadeniz for 10,000 t of HMS 1&2 (75:25) scrap, 10,000 t of new cuttings and a total of 15,000 t of P&S and HMS 1 products; all the cargoes are of the Belgian production.

The major Far Eastern buyers of steel scrap prefer to wait and see. They insist on discounts, but most exporters are unwilling to make any concessions. Moreover, some suppliers voice higher quotes. Only the prices for Japanese HMS 2 product have sagged by $7/t to $225.7-234.7/t FOB South Korea due to the yen devaluation against the US dollar. It is worth noting that the deals have been signed closer to the lower level of the price range. Neither Russian 3A scrap nor US HMS 1 product has been sold to South Korea this week due to high quotes for the commodities – $275/t and $285/t C&F respectively. The Vietnamese importers have purchased 5,000 t of Japanese HMS 2 scrap at $255/t C&F. The South Korean-origin HMS 1&2 (80:20) cargo has been acquired at $253/t C&F Vietnam.

***

The downward price trend is observed in the global market of square billets in mid-November. Nevertheless, the exporters from Russia and Ukraine have raised the quotes for their products by around $2.5/t. At present, the cargo is offered at $390/t FOB Black Sea. Moreover, the suppliers have managed to sign several deals at new prices.

China ramped up the volumes of steel production in November. This has resulted in a slump in quotes for Chinese square billets by $15/t to $370-385/t FOB over the week. But even despite the decrease, the importers’ interest has remained muted. Only one deal for the supply of the cargo to Thailand has been reported this week, the contract prices have been established within $381-383/t FOB. Chinese billets are offered to South Korean buyers at $380/t FOB, but no deals have been heard of so far.

***

No major changes have happened in both Ukrainian and Russian markets of hot-rolled coils in mid-November. Earlier, the suppliers were planning to ramp up the quotes for their products, but they had to dismiss all thoughts of an increase considering the trends in the global market. So, the prices have stabilized this week. Russian product is still available at $480/t FOB Black Sea, $475/t FOB Baltic Sea and $470/t FOB Astrakhan. The cargo from Ukraine still can be purchased at $470/t FOB Black Sea.

Export quotes for Chinese hot-rolled coils have stepped down by $5/t to $460-470/t FOB. However, the decrease has appeared insufficient to boost the demand for the commodity. At present, Chinese hot-rolled coils remain uncompetitive compared to those from other producing countries, such as India, South Korea, Taiwan and Russia.

***

Quotes for rebar of both Russian and Ukrainian production have stayed at the level of last week in mid-November. The cargo is still offered to the buyers from the MENA region at $415/t FOB Black Sea. Meanwhile, the demand for the product remains dull, as the importers are unwilling to pay more than $405/t FOB Black Sea.

Export quotes for Turkish rebar have held steady since early November. The suppliers are ready to sign deals with foreign buyers at $430-445/t FOB. This week, several lots of the Turkish cargo with shipments in December have been reportedly sold to the UAE at $430-440/t FOB.

Chinese producers have raised rebar quotes by $5/t to $430-450/t FOB. The consumers show no interest in purchases, considering the new prices to be too high. At present, they are only the traders, who manage to sign deals, because they operate in the market with the cargoes previously acquired at lower prices. According to market data, the Chinese traders have sold rebar to Singapore and Hong Kong at $400-406/t FOB; the cargo is to be shipped in January.

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