Supported by the uptrend in the global scrap market and the somewhat increased number of orders, the main basic pig iron (BPI) suppliers have managed to pull deal prices up to the earlier targeted levels.
There are a lot of discussions around China’s return to the market as a buyer after a long absence. According to sources, a 60,000 mt cargo of pig iron with up to 0.15 percent phosphorus content from Brazil was sold early this week at $315/mt FOB. The volume will be shipped in April. The same price, but for BPI with up to 0.10 percent phosphorus content, has been fixed to the US recently. Taking into account that last week bids were at $305-310/mt FOB, ex-Brazil pig iron prices have strengthened this week. “Now it will be quieter due to carnival. So we need time to see where the market develops”, one market insider noted.
In the US, the latest BPI sales from the CIS have been reportedly closed at slightly above $345/mt CFR, while the average level of last week’s sales by Ukraine’s Metinvest was estimated at $340/mt CFR, as SteelOrbis reported earlier. Ex-CIS BPI prices are estimated at $320-325/mt FOB levels and slightly above, versus $315-320/mt FOB fixed last week.
Business activity in the European market has been slow, mainly as the majority of the buyers are not in need of urgent restocking. Offers ex-CIS have been reported at $340-350/mt CFR Maghera in northern Italy, while bids have been heard at levels far lower. “The stocks in Italy are estimated to be enough until mid-March. So the customers are not in a hurry to support suppliers’ bullish policy,” a European trader stated.
Currently, most CIS-based BPI exporters do not have much availability for March production and so they are expected to take a pause in order to gain a clearer picture of the situation in the market.