Prices for ex-Russia basic pig iron (BPI) have failed to increase in deals so far since, even though most sellers have been asking for rises over the past two weeks, bids from the main customers are relatively stable.
The SteelOrbis reference price for ex-Russia BPI has settled at $390-410/mt FOB Black Sea, posting a tiny $2.5/mt increase on average over the past week, mainly amid increased offers and negotiations for higher grade material.
In the main sales destination, Europe, steel mills and at least one large distributor have been bidding at $420-425/mt CFR, so similar to the previous deals and bids last week. This level translates to around $390-395/mt FOB or just slightly below, depending on the volume and port. Some market sources believe that, for other than the Italian market where prices are usually at the lowest level, European buyers may consider $430/mt CFR, especially for foundries. However, no new deals have been reported in the market so far as the leading Russian mill has been offering officially at $420/mt FOB at the lowest, outside of the real market picture. “Italy is quiet and there are no deals heard. I don't know who is selling now as Russia is asking for high levels. Brazil has time to wait [as only June shipment is available]. It's complete silence,” a Europe-based trader said. “Suppliers are asking for higher prices, but business is very bad,” another European importer said.
In Turkey, another Russian mill has been officially offering low-manganese pig iron at $430/mt FOB, which is usually around $10/mt higher than high-manganese material. However, after a deal for 10,000-20,000 mt done at $410/mt FOB for Turkey for further sales to foundries before the holidays, fresh negotiations have been held at $415-420/mt FOB Black Sea, also for low-manganese material, though there has been no confirmation about whether the deal was done. This price translates to $435-440/mt CFR and cannot be workable for steel mills, which are not in the market given the still low levels of scrap prices.