Ex-Russia BPI prices under pressure from slow buying, weak scrap outlook

Friday, 23 February 2024 17:15:07 (GMT+3)   |   Istanbul
       

The Black Sea basic pig iron (BPI) market has posted some further decline this week as the major buyers in the international market have been reluctant to accept mills’ previous offers and the outlook for scrap is weak, while the resumption of trading to Italy has confirmed the weakness of the market.

Two major Russian BPI sellers have decided to provide limited discounts to accelerate sales. In particular, there have been reports of a deal to Italy at $430/mt CFR, which translates to $405/mt FOB Black Sea, for a large volume. This level is $10/mt below the lowest offers heard since late last week to Italy. But the details regarding the contract have remained unclear by the time of publication. Previously, the tradable level in Europe was assessed at $425-450/mt CFR. Market sources still believe that for foundries the CFR level is still above $430/mt CFR, but, as no new deals have been heard so far, it is assessed at around $440-445/mt CFR.

In other major sales destination, Turkey, one small deal for not above 10,000 mt has been rumored at $405-410/mt FOB Black Sea, but it is reported to be a top-up cargo and not for a steel mill. “In Turkey, there is no interest in large-volume purchases of pig iron, especially when scrap is softening,” a trader said. Market sources believe that for Turkey the tradable level is $425/mt CFR at the highest, and only for small volumes, which translates to near $400/mt FOB.

There has been a tender for 30,000 mt of ex-India BPI, and, even though the information has remained unconfirmed by the time of publication, some market sources said it has gone to Bangladesh at $430/mt FOB. This price level is assessed as being extremely high and workable only for such countries as Bangladesh, while the target for other major markets for Indian producers should not be above $415-420/mt FOB.

Also, a small-volume deal of higher quality BPI has been reported from Russia to South Korea at $485/mt CFR, down by $5/mt from the previous sale of the same quality and volume last month.

The SteelOrbis reference price for ex-Black Sea BPI has been corrected down to $395-410/mt FOB, with the midpoint at $402.5/mt FOB, versus $395-415/mt FOB last week.


Similar articles

US customers accept rise in BPI prices in new deals after weeks of resistance

25 Oct | Scrap & Raw Materials

Ex-Russia BPI price slides further amid lower bids and deals in major markets

25 Oct | Scrap & Raw Materials

Russia’s MMK reports lower steel output and sales for Q3

24 Oct | Steel News

Russia extends long steel and pig iron export duty exemption until year-end

24 Oct | Steel News

German crude steel output increases by 4.0 percent in January-September

23 Oct | Steel News

Japanese crude steel output down 3.6 percent in September from August

22 Oct | Steel News

Ex-Russia BPI down amid weak demand globally, negotiations resume with Europe for next quota

18 Oct | Scrap & Raw Materials

Ex-Brazil BPI market silent as US buyers reject any increases

18 Oct | Scrap & Raw Materials

China’s crude steel output down 1.09 percent in Sept from Aug, rise expected for Oct

18 Oct | Steel News

Ex-Russia BPI prices only supported by some gradual demand revival in Turkey

11 Oct | Scrap & Raw Materials