Prices for ex-Russia basic pig iron (BPI) have been settled at higher levels this week mainly amid the increase in offers and high levels in rare deals. Even though demand has remained not so strong, overall allocation for exports has also been limited.
The SteelOrbis reference price for ex-Black Sea BPI has risen further, based on the latest deals, to $395-420/mt FOB, with the midpoint at $407.5/mt FOB, up by $17.5/mt on average from last week.
Offers from one of the major mills have been reported at up to $430/mt FOB Black Sea, versus $400-410/mt FOB earlier this month. A least one deal for 40,000 mt of ex-Russia BPI has been rumored at $445-450/mt CFR to Europe, which translates to $415-420/mt FOB Black Sea. Last week, negotiations with an Italian customer were reported at $430/mt CFR. “I don't think there is so much pig iron available [from the Black Sea]. Anyway, this price is crazy high,” a European trader said. Though overall allocation from Russia is limited, there are reports that a number of customers have decided to look for Brazilian hematite pig iron instead of Russian material due to the recently imposed sanctions, even though the quota for ex-Russia BPI is enough for this year.
In Turkey, the indicative offer prices for ex-Black Sea BPI have been reported at $420-450/mt CFR, while some of these offers were for material booked from the mill earlier. Taking into account the recent scrap sales at $418-422/mt CFR for HMS (80:20) in Turkey, interest in Russian BPI has been limited.
Demand has remained soft and bids are still low in the Far East. The tradable levels are at $420-430/mt CFR in China and Taiwan and slightly higher in other Asian countries, which translates to below $400/mt FOB Black Sea, out of the range of interest of Russian suppliers.