Global BPI customers not in rush to accept higher prices

Friday, 24 March 2023 12:19:51 (GMT+3)   |   Istanbul
       

Although global basic pig iron (BPI) suppliers have continued persistently to seek higher prices in future transactions, most customers have remained quite skeptical towards any substantial success. “The market has been turning pretty quiet, not only but also because of the financial market turmoil. Pig iron is certainly retreating,” an international trader stated. “There is still not much action. Whatever they [BPI producers] offer now, sooner or later prices will come down,” another international trader commented. Meanwhile, ex-Brazil BPI offers have increased by $25/mt compared to the previous levels, to $550-560/mt FOB, for June shipment. Given the current freight from Brazil to the US at $27-35/mt, depending on the volume of cargo, the CFR price might be $577/mt CFR Port of New Orleans, at the lowest, which makes ex-Brazil BPI less attractive than ex-India BPI. Furthermore, despite lower levels, suppliers of ex-India BPI are also struggling to find a buyer. “We are exploring $570/mt CFR levels, but are still not able to get buyers,” an Indian source stated. Following the latest ex-India BPI tender which was closed at $510/mt FOB in the middle of March, ex-India BPI offers have risen to $515-520/mt FOB. With the increased freight rate to $50/mt for shipment of 40,000 mt cargoes, the CFR price for ex-India BPI would be around $565-570/mt CFR Port of New Orleans. 


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