Scrap
The Italian ferrous scrap segment is gradually recovering after holidays and signs of continuation of upward trend which began almost three months ago. As local traders expected, prices are now being set at levels close to the maximums of 2010, when in the last week of December some mills hiked their purchase prices in an attempt to attract additional material. As previously reported, the average price for E40 was EUR 350/t CPT in December. In turn, high-quality bushelings (E8) scrap is quoted at EUR 400/t ($518/t) CPT against EUR 360/t CPT in mid-December. Italian mills are bidding EUR 365-370/t ($472-478/t) CPT for HMS 1&2 (80:20) (E3), EUR 40-45/t up from two weeks ago.Offers of scrap from neighbouring countries are also increasing. In particular, traders from France and Germany have lifted their prices by EUR 40-45/t in two weeks.Suppliers are ready to ship shredded scrap (E40) at EUR 380-385/t ($491-498/t) delivered, bushelings (E8) – at EUR 395/t ($511/t) delivered and HMS 1&2 (80:20) (E3) – at least at EUR 360-365/t ($466-472/t) delivered.
This week Spanish plants have started recovering after a holiday price boom in the world segment of steel scrap. While most European exporters of the material, having already sold most of January production before Christmas, left the market for holidays, US traders together with Turkish mills boosted prices by another $40/t. Meanwhile, market participants report that scrap collectors are ready to sell rather large volumes of OA structural material at EUR 390/t C&F Spain, which means about $504/t C&F at the exchange rate
EUR 1 = $1.295. At the same time, offers of shredded scrap are limited and traders quote it at EUR 395/t ($510/t) C&F, while a week ago it was transacted at EUR 370/t ($493/t) C&F. Estimated prices for HMS 1&2 (80:20) (E3) have also gone up and settled at about EUR 370/t ($478/t) C&F, suppliers say. Currently bids for local scrap are as follows: HMS 1&2 (80:20) (E3) – EUR 360-365/t ($466-472/t) delivered against
EUR 340/t delivered last week. Prices for shredded scrap (E40) have grown to EUR 380-385/t ($479-486) delivered, by EUR 20/t up from last-week levels.
Pig Iron
Market participants report Russian producers are offering February melting at $530-540/t FOB ports of Black and Baltic Sea ($555-565/t C&F). The latest contracts have been reportedly signed at $495-500/t FOB ($520-525/t C&F ports of Spain) for late-January – early-February output. Notably, the current bids are reaching the April peak levels –$565/t C&F. Pig iron of Ukrainian origin is priced at $500/t FOB Black Sea, which means $525/t C&F ports of Italy. Exporters mainly referred to steadily soaring scrap quotations when revised prices. In particular, shredded scrap is available in Italy at $505/t delivered. Taking into account a big price gap between the two kinds of material, pig iron suppliers hope to add $30-40/t to the late-December transaction level. The time when the decrease will be implemented is more important: the Spaniards are getting prepared for February, the Italians are more optimistic, thinking it will be in March. Some traders believe prices will fall by $50-60/t.
Coke&Coal
In the first half of January, despite an increase in coking coal prices in the Polish domestic market, blast furnace coke offers stay stable. Suppliers have not followed coal miners yet but offers are expected to
go up already in February. At the moment, spot prices for high-quality coke (max. 10.5% ash content,
max. 1% moisture) remain at the level of December – EUR 310-320/t EXW (all prices are given exclusive of 22% VAT), which equals to $406-419/t (EUR 1 = $1.31). Quotations of lower-quality coke (max. 11% ash content, max. 7% moisture) are EUR 280-285/t ($367-373/t) EXW. In spite of some upswings of activity, demand in January is almost the same as in December, market players say. Currently, prices for high-quality hard coking coal (ash – 6.5-7%, moisture – 8%, sulphur – 0.5%) from Poland reach $265/t CPT, while the material was booked at $249-255/t CPT in December. Export quotations of semi-soft coking coal (ash – 7-8%, moisture – 9-10%, sulphur – 0.5-0.8%) are at $195-198/t CPT against $180-185/t CPT last month.
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