Global basic pig iron (BPI) buyers have continued to mostly delay new purchases this week, while suppliers have been not in a hurry to lower their prices in order to obtain orders. While some BPI sellers maintain a bullish stance in offerings notwithstanding some decline in offer prices, other producers have opted to leave the market, monitoring the developments in other metallurgical segments. This situation has resulted in the continued silence in BPI trading in the key regions, with one ex-Brazil BPI booking done to an alternative destination.
Specifically, 30,000 mt of ex-Brazil BPI, for shipment in February, is heard to have been sold to Peru. The price has not been disclosed by the time of publication, but most market insiders consider the level at $500/mt FOB as the highest possible to achieve within the current market circumstances. “The markets are in a lull, with China being completely absent. All of us see a further downtrend. Any price for ex-Brazil BPI higher than $500/mt FOB would be a surprise to me,” a European trader commented with regard to the abovementioned deal. “Even to get an order at $500/mt FOB is great luck today,” another trader stated. Initial offers from Brazil-based BPI suppliers were voiced at $500-510/mt FOB, as SteelOrbis reported previously.
While one first-tier Ukraine-based BPI producer is said to be ready to sell at $520-530/mt FOB Black Sea, down $10/mt compared to the general level of ex-CIS BPI offers a week ago, another Ukrainian mill has preferred to temporarily leave the market. “We would sell at $585/mt CFR Mediterranean Sea if we were in the market,” an official of the mill stated. The current freight rate is estimated at $30/mt from Black Sea ports. While one deal for 10,000-15,000 mt appears to have been done for ex-Ukraine BPI into Turkey at $560/mt CFR, most Turkish customers are seeking to pay not higher than $550-555/mt CFR, SteelOrbis has learned. Ex-Brazil BPI is said to be available in Turkey at $540-550/mt CFR.
Russia-based BPI suppliers appear to be delaying new bookings, being uncertain as regards the decision of the Russian government on the new export duty from January, 2022.
In the meantime, ex-India BPI is available at $490-500/mt FOB, with bids not exceeding $470-480/mt FOB.