Following the gradual rebound in the Turkish scrap market this week, some major suppliers in the global basic pig iron (BPI) market have also voiced higher offers. However, there has been no response from buyers and, overall, the uptrend is assessed as being very shaky, given the lack of significant improvements in the finished steel markets.
In the benchmark import US market, trading has been silent and the tradable level for ex-Brazil high-phosphorous BPI has remained stable at $430-435/mt CFR. However, a number of ex-Brazil sellers have been insisting on higher offers at $410-415/mt FOB, versus the last deal at $405/mt FOB reported last week. “It seems prices have bottomed out, but at the same time I’m struggling to see the optimism that pricing can improve,” a European trader said, adding that the real market level is still not above $405/mt FOB from Brazil. The SteelOrbis daily reference price for ex-Brazil BPI has remained at $405-406/mt FOB, in line with the last deals in the market.
The ex-Black Sea high-manganese BPI price has settled at $320-340/mt FOB, down by $10/mt from the upper end due to mismatch between offers and bids. Though some suppliers have voiced higher offers at $360/mt FOB, there has been no success in terms of sales or higher bids in the market. In particular, offers for ex-Russia BPI to Italy have been reported at $385-390/mt CFR, while the tradable level is still assessed at hardly above $370/mt CFR, with no new bids or deals done due to “the holiday season and high stocks at ports,” a source said.
“There is still limited supply in the market, so I don’t think that we will see any significant changes in prices in August,” a trader said. In Turkey, there have been reports of a $390/mt DAP price offered to plants for ex-Donbass pig iron, which is too high for most customers.
In the Far East, after a sale of 40,000 mt of ex-Russia BPI from a sanctioned mill to China at around $390/mt CFR over a week ago, there have been no new deals reported to China with most bids falling to $370/mt CFR or so.
There have been some reports of an ex-Russia sale done to India at $380/mt CFR (translating to around $340-350/mt FOB Black Sea), but it could not be confirmed by the time of publication.
“Turkish buyers simply cannot pay much higher for scrap, as long as steel prices won`t catch up. HRC futures in China are plummeting again, pointing to deflationary pressure,” an international trader said.