Bullish sentiment drives up global BPI prices

Wednesday, 09 December 2020 17:59:10 (GMT+3)   |   Istanbul
       

The ongoing uptrend in the global market of raw materials and steel products has made suppliers of basic pig iron (BPI) more cautious as regards announcing offers. Most of them have taken a wait-and-see stance, aiming to take full advantage of current developments. However, a few sellers are not missing the opportunity to sign deals for small lots or for pig iron with higher quality, thereby contributing to the further increase of prices.

SteelOrbis has learned of a fresh deal done by a Russia-based mill to Turkey for 5,000 mt of BPI with low manganese content at $497/mt FOB Black Sea, for shipment in March. The CFR price is estimated to be about $512/mt CFR, with freight assessed at $15/mt. Meanwhile, a week ago a Ukraine-based producer booked a few lots of foundry pig iron to Turkey at $485-486/mt CFR. “Our indication as for this week is $480/mt FOB Black Sea. However, we are not much active in negotiations, expecting a further increase in prices,” a representative of one of the CIS-based mills stated. According to market insiders, Turkish customers have been quite active in sending inquiries for pig iron lately, though the gap between BPI and scrap quotations has widened. By so doing, Turkish customers are aiming to secure themselves from a very possible tight supply of scrap following the winter season and a strong recovery of domestic markets, sources said.

Meanwhile, spot trading in the US pig iron market has also increased. Accordingly, SteelOrbis has learned of at least two bookings done since the beginning of this week. One cargo of ex-Brazil BPI with 0.12 phosphorus content was booked to the US at the beginning of this week at $465/mt CFR Port of New Orleans, which is equivalent to $450/mt FOB north coast. The price is considered by most market insiders as quite low, taking into account the current circumstances. “It would not have been a surprise for me if the US price was $500/mt CFR this week. However, the price $465/mt CFR is a surprise,” an international trader commented. It is said that Brazil-based suppliers on the south coast are targeting $500/mt FOB. Meanwhile, another deal for ex-India granulated pig iron, which was done at $470/mt CFR US, for January shipment, has made most market insiders quite suspicious. “I am afraid that this ex-India booking to the US may mean that China has completely stopped their pig iron buying. I do not find any other explanation of what the aim is to transport material so far away, moreover, for material not of as good quality as US customers always request,” the international trader commented.


Tags: Pig Iron Raw Mat CIS 

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