Although basic pig iron (BPI) buyers have continued to show resistance as regards accepting the prices targeted by key suppliers, the ongoing bullishness in the finished steel markets (especially, in the hot rolled coil (HRC) segment) has encouraged some buyers to resume their purchases. “CIS-based mills aim to get high levels; however no transactions have been concluded. We are still in a standoff, and the question remains, who will blink first,” an international trader stated, commenting on the situation with regard to recent market developments at the beginning of the current week. However, by the end of week, information regarding a few BPI transactions has been leaked to the market.
Accordingly, SteelOrbis has learned of a deal for shipment of a cargo of 55,000 mt of ex-Brazil BPI in the first half of June, done between a Turkish steelmaker and an international trader, at $520/mt FOB Brazil, southern ports. Taking into account the current freight rates, the CFR price is assessed by market sources to be at about $550-555/mt CFR. Lately, another booking for 10,000 mt of ex-Ukraine BPI is heard to have been done to Turkey at $563/mt CFR, for shipment at the end of April. “Though ex-Russia BPI has been offered at $560/mt CFR, the buyer has given preference to prompt delivery apparently,” the international trader commented. With regard to the above-mentioned deal, the FOB price has been discussed at $550/mt FOB Black Sea. However, taking into account the freight rate even at the lowest level of $18/mt, the FOB price is considered to be overvalued. Meanwhile, official offers from the supplier have been voiced at $550/mt FOB Black Sea. While one Russia-based supplier has been heard to be in the market with offers at $540-545/mt FOB Black Sea, another Russian producer is said not to be in a hurry to sell, expecting to see higher prices very soon.
Meanwhile, SteelOrbis has heard of a 5,000 mt booking of ex-Ukraine BPI to Italy at $580-585/mt CFR Marghera, with the FOB price being estimated at about $550-555/mt FOB Black Sea.
There has been information about a booking of ex-Ukraine BPI to the US at $575/mt CFR, though the material has reportedly changed hands within the scope of a long-term contract.
Ex-Brazil BPI offers have been heard at $540/mt FOB southern ports, unchanged compared to the most recent booking done a week ago, with the destination still not disclosed to the market.