The global basic pig iron (BPI) market remains highly active with ongoing demand being received from Chinese customers.
SteelOrbis has been informed of a few fresh bookings of ex-CIS BPI to this destination. Accordingly, Russia-based Tula sold a cargo of BPI for December shipment directly to a Chinese customer at $385/mt CFR, which translates to about $351/mt FOB, taking into account the current freight rate. Another Russia-based mill, NLMK, managed to get an even higher price, based on early terms for the material's shipment. A cargo for early October shipment was booked by an international trader at $389/mt CFR. The latest deal before the above-mentioned deals was done by an international trader at $384/mt CFR for ex-Brazil BPI.
In view of the abovementioned deals and the deal done previously to the US, SteelOrbis’ assessment for ex-CIS BPI prices has widened to $345-355/mt FOB Black Sea, versus $340-345/mt FOB Black Sea fixed at the beginning of the current week.
In the meantime, Brazilian suppliers have started testing the market with offers at $360/mt FOB for December shipment, up $10/mt compared to the level fixed in the most recent deal. “The market will likely go up a bit again in the coming days. Not much material is left,” an international trader stated commenting on the current situation.