Prices for ex-Russia basic pig iron (BPI) have been relatively stable and trading has slowed down compared to the previous week. From one point of view, suppliers have not been ready to give discounts, seeing need in high quality raw materials in Europe. However, since the Turkish market has remained subdued, demand in Europe for steel will be reduced for August and bids at other destinations have been low, the outlook is rather negative.
After increase by $10/mt in latest deals for Russia BPI to Europe to $445-455/mt CFR last week, European customers have become cautious. “The price for Italy is $450/mt CFR, but now market is more quiet and next week Turkey is on vacation. I heard no new deals,” a trading source said. This level translates to $420-427/mt FOB Black Sea as SteelOrbis reported last week. Offers have been heard at similar levels or some mills have been targeting $430/mt FOB, but this has been too high for the silent market. “In Europe prices were going up for high grade scrap, HBI and pig iron as availability is very limited,” a Europe-based trader said. However, after accepting increases last week, buyers have not been willing to keep this, sources said. Import HBI prices in Italy have also posted some increase from $390-400/mt CFR two weeks back to $400-405/mt CFR.
At the same time, expectations have been mixed, as for August the market is entering the holiday mood. “In Italy, there are less inquiries from foundries as many of them are planning maintenance for the holiday period. So, they may stop working from mid-July already,” a Europe-based source said. In other parts of Europe, demand has been assessed as stable or already reduced.
Offers to Turkey for ex-Donbass and ex-Russia BPI have been heard at $435-450/mt CFR, translating to $415-430/mt FOB, while buyers have not been interested in purchases at all, especially ahead of holidays next week. “I believe even if there are some bids, they will be $405-410/mt FOB, but again no one is asking,” a source said.
The SteelOrbis reference price for ex-Russia BPI has been at $405-425/mt FOB Black Sea with the midpoint at $415/mt FOB, down by $2.5/mt on average over the week.