Trading activity for basic pig iron (BPI) globally continues to be largely focused on the Chinese market. However, business has been gradually gaining pace in the alternative markets lately.
According to sources, a 60,000 mt lot for July shipment was traded to China from Brazil this week at $275/mt FOB or around $305-310/mt CFR, SteelOrbis estimates. Last week, deals were $5/mt lower and the latest official offers for pig iron with 0.15 percent phosphorus content from Brazil are standing at $285/mt FOB, with $5-7/mt lower levels possible if prepayment is granted.
In addition, China has been interested in sourcing pig iron from the Asian region. Japan’s Nippon Steel has recently sold 50,000-80,000 mt at $290-295/mt CFR for May-June shipment with the freight estimated at $15-20/mt. Indian suppliers have increased prices to $305-310/mt CFR, after the recent sale at $300/mt CFR China about a week ago. Offers for ex-India granulated pig iron to China have been voiced at $295-305/mt CFR, SteelOrbis has learned. Ex-Vietnam pig iron with 0.18 percent phosphorus content for May shipment has been offered to China at $305/CFR, with $5/mt discounts possible.
Aside from China, some other Asian buyers have been interested in pig iron imports. Japan’s Kobe Steel has recently traded 5,000 mt of basic pig iron with 0.12 percent phosphorus content at $285/mt FOB to Taiwan, which corresponds to around $305/mt CFR.
Decent trading activity has been seen in the Mediterranean region. Italy, which has been dramatically hampered by the Covid-19 outbreak, has been showing the first signs of a pig iron demand recovery. Although the national lockdown measures have largely been extended until May 3, the resumption of operations by steel mills last week has encouraged pig iron consumers to start negotiations, some of which have already resulted in deals. Deals for ex-Ukraine pig iron have been closed at $310/mt CFR, though some sources have also reported transactions at $305-307/mt CFR ex-CIS. “The Italian market is reviving slightly, but no trading spree is expected here in the near future due to obvious reasons,” an Italy-based trader said describing the current situation. The majority of Italian consumers may not resume active purchases soon having accumulated inventories before the Covid-19 outbreak. Moreover, while offers reach $315/mt CFR Marghera, bids are largely voiced at $290-300/mt CFR.
Turkey has been active after a long period of silence, having booked large lots from the CIS over the past two weeks. In particular, according to sources, 15,000 mt from Russia was traded at $300/mt CFR. Another 20,000 mt lot was sold to the Marmara region at $302-304/mt CFR for May shipment. This week an Iskenderun region-based mill has purchased another 20,000 mt from Ukraine at around $300/mt CFR or slightly below, in addition to the same volume booked from the same seller and at a similar price level around a week ago.
The US market has remained largely quiet, with only one large lot sold last week ex-CIS at $295/mt CFR. However, overall trading activity to the destination is rather weak. “I’ve received a few inquiries from the US customers, but I suppose that they just tested the market,” a Brazilian supplier said.
Ex-CIS basic pig iron offers for now remain $280-295/mt FOB Black Sea, while prices for pig iron with low manganese content in the Baltic Sea region have been voiced at $335/mt FOB.