Prices for basic pig iron (BPI) in the global market have remained unchanged over the past week and trading at the major sales destinations has fallen to almost nil. However, outlook has turned bearish, especially for the European import market, taking into account closer holiday season and some decline in local scrap prices.
Offers for ex-Brazil BPI with 0.15 percent of phosphorus content have been at $445-450/mt FOB, stable over the week after a deal signed at $445/mt FOB a week ago. “Here prices are still on the same range, no one wants to rush for August shipment,” a Brazilian producer said.
Also, the US BPI importers have been silent lately after deals for high-phosphorus BPI signed at around $470-475/mt CFR, while there have been no confirmed deals for BPI with phosphorus content at 0.10 percent. The tradable level for the latter has been assessed at still $480-485/mt CFR, at which level the previous ex-Ukraine BPI sales done under the long-term agreements. The local US scrap market is expected to move sideways or to go down slightly for July.
In the European import BPI market, trading activity has also declined significantly. Official offers from Russian suppliers have remained at $425-430/mt FOB Black Sea for August shipment, translating to $450-455/mt CFR for large lots and to $455-460/mt CFR for smaller ones. However, after deals at $450/mt CFR around two weeks ago, buyers have been refusing to purchase and a few market sources claimed bids at $445/mt CFR as the highest from foundries and at as low as $435-440/mt CFR (or $410-415/mt FOB) for large lots from steel mills and distributors. Offers from Ukraine to Europe have been heard at $460-470/mt CFR depending on the lot and port of destination. After some decline in local scrap prices in Europe, “pig iron prices are also expected to lower by around $5/mt, if someone decides to sell,” a Europe-based source said.
The latest deal to a trader in Turkey from Russia was done at near $420/mt FOB a week ago for a relatively small volume. But a few market sources said that considering the current market conditions for any even medium size lots the workable price should be $400-405/mt FOB Black Sea.
The SteelOrbis reference price for ex-Russia BPI has been settled at $405-420/mt FOB this week, with the higher end of the range slipping by $5/mt over the week.