The last week of August has turned out to be highly active in the basic pig iron (BPI) segment, resulting in multiple bookings. Although China has remained the most interested buyer, US customers are gradually returning to the market, with some of them having already booked material.
Accordingly, by the end of the previous week, one Russia-based BPI producer sold 50,000 mt of BPI for shipment at the end of September to an international trader at $378/mt CFR. The material is destined for China. A cargo of BPI produced by another Russia-based mill for November shipment was booked at the same price to the same destination. Additionally, SteelOrbis has been informed of a 10,000 mt BPI sale from the eastern ports of Russia to China at $380/mt CFR, for October shipment.
Meanwhile, Brazilian suppliers were also quite active in sales during the previous week. In addition to the sale of 60,000 mt BPI, for October shipment to China at $350/mt FOB, which SteelOrbis reported earlier, the market has disclosed another booking done by another supplier, at $340/mt FOB for December shipment. The trade is considered by all market insiders as being too low and may be explained by the type of payment. “Considering the bullish sentiments worldwide, this booking is quite illogical for me. However, I suppose, that there could be “a good” percentage of prepayment. The trader, who purchased, can afford it”, another international agent commented.
Additionally, SteelOrbis has learned of an ex-Ukraine BPI sale to the US market, for October shipment. Although bids from US customers have been voiced largely at $350-355/mt CFR, with offers at $360-365/mt CFR, one of the buyers booked the material at the lower end of offer range. “Nucor, SDI, North Star… all are in the market. Being very empty on stocks, they have no other option than to buy,” an international trader commented.
As a result, the current offers for ex-CIS BPI have remained stable compared to the previous week, being in the range $340-345/mt FOB Black Sea, while prices from Brazil have widened to $340-350/mt FOB.