Following the sharp price rise for semi-finished steel in China coupled with confident expectations of continued growth, Chinese steel mills appear to be resuming its basic pig iron (BPI) purchases. However, buying interest for ex-CIS as well as for ex-Brazil BPI has continued to be constrained by the divergence between offers and bids.
Accordingly, SteelOrbis has learned of a fresh booking of 45,000 mt of ex-India BPI to China at $570-575/mt CFR, for shipment at the end of June. “China is gradually returning to pig iron purchases, but is still not paying ex-CIS prices,” a key international trader stated.
In the meantime, ex-CIS BPI is said to be available at $600/mt FOB Black Sea and above, with the most recent transaction for ex-Ukraine 10,000 mt BPI cargo booked to Italy at $620/mt CFR Marghera at the end of last week. Brazil-based suppliers, meanwhile, have been taking their time to figure out their new offers on the back of the recent developments in the iron ore market. On May 10, the price of the 65 percent iron sinter feed fines from Brazil reached a new record high at $260/mt CFR China, versus $244/mt CFR China on Friday last week.