The recent volatility in future prices in China doubled with emerged uncertainty on the further price trend among global scrap suppliers has made Chinese basic pig iron (BPI) buyers more cautious in signing new deals. Meanwhile, global BPI sellers have continued to increase their offers despite the resistance of Chinese customers.
According to market insiders, today hardly any global BPI seller is ready to start negotiations even at $400/mt CFR China, most of them are above this level, while a few of them have increased prices to $420/mt CFR. “Now everyone wants over $400/mt CFR, but buyers have taken a pause as of now. Shanghai futures have melted again today… so Chinese are super cautious on pricing, in particular, on BPI’s one”, the international trader commented.
SteelOrbis has been informed of 10,000 mt of ex-CIS BPI booking at $395-396/mt CFR China last week. The material is supposed to be shipped from the Russian Far East.
As a result, SteelOrbis’ assessment for ex-CIS BPI prices went up from $360-370/mt FOB Black Sea last week to $370/mt and above, while ex-Brazil BPI offers widened to $370-390/mt FOB from $370-380/mt FOB a week ago.