Bullishness of global BPI suppliers rises with each new sale

Tuesday, 19 October 2021 19:19:36 (GMT+3)   |   Istanbul

Despite the absence of the interest from the key markets (US and China), global basic pig iron (BPI) suppliers have continued to insist on higher prices in each new negotiations, citing limited allocation and in general, bullish sentiments towards the future price trend in the steel and raw material markets. Meanwhile, some traders are accepting the new prices, targeted by producers, expecting a certain rise in demand from Turkey and Italy soon on the back of the developments.

Accordingly, SteelOrbis has learned of a few new sales of BPI produced by a second-tier supplier based in Ukraine at $530/mt FOB Black Sea. While the total volume of BPI sold by the producer this time appears to reach 40,000 mt, it is expected to reach 90,000 mt per month in the coming months, which may exert some pressure on the global BPI suppliers. The material is destined to be shipped to Italy and Turkey, with the estimated freight at $45/mt and $30/mt, respectively. “They might have selected the material with low manganese content, hence the price was accepted,” an international trader commented. Meanwhile, offers from another Ukraine-based BPI producer to Italy have been heard at $570-580/mt CFR during the current week. A week ago a few deals for ex-Russia BPI had been done at $515/mt FOB Black Sea, for November shipments, with also Turkey and Italy being expected as the final destinations. “Overall, the suppliers in Russia are holding off with new sales, waiting for January 1 in the hope the export tax will be cancelled,” another source stated. As SteelOrbis reported previously, by the end of the past week a first-tier Ukraine-based BPI supplier has withdrawn its offers at $520/mt FOB Black Sea, aiming to get higher numbers in the future. 

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