Prices for ex-Black Sea basic pig iron (BPI) have remained stable over the past two weeks after hike in the middle of January. Overall supply has been limited with only two Russian mills are in the market with offers, while demand is reduced too.
The SteelOrbis reference price for ex-Black Sea BPI has been settled at $400-415/mt FOB, narrowed from $395-420/mt FOB last week. A few offers have been reported at $420/mt FOB, slightly down from the highest level of $430/mt FOB seen a week ago, “but no new deals to Europe,” a trader said. The previous booking to Italy was done at $445-450/mt CFR, translating to $415-420/mt FOB Black Sea. But market sources are still saying that this was an exceptional contract and most bids are at $430-440/mt CFR.
Also, a small contract for around 10,000 mt has been done to South Korea at equivalent to $410-415/mt FOB Black Sea. Bids from other Asian buyers like China or Taiwan are still at hardly above $420-425/mt CFR.
Some cautious positive mood in the Turkish scrap market has supported import BPI prices in Turkey with offers at $435-440/mt CFR. No new trades have been reported so far and the tradable level is $425/mt CFR as the highest, according to market sources, translating to $400-405/mt FOB.