New deals for ex-Russia basic pig iron (BPI) have increased, as disclosed early this week. But only limited tonnages have been sold so far. Amid limited allocation and rising scrap prices, suppliers will aim for further hikes.
A contract for 5,000 mt of low-manganese Russian pig iron was closed at $400/mt FOB last week, up from $380/mt FOB in the previous contracts for similar or slightly lower quality material. “5,000 mt is an optimum quantity for traders serving the foundry industry in Turkey,” a trader commented as regards the high price. “I believe that it is still impossible to sell basic pig iron with higher manganese content at such a price, even though scrap has increased,” another trader said, adding that the price for BPI material with higher Mn content would be not above $380/mt FOB now. The freight for small volumes from the Black Sea to Turkey is assessed at $20-25/mt.
In addition, there have been reports of sales of ex-Russia BPI to Europe at $390-395/mt CFR, translating to $360-365/mt FOB Black Sea. The volume is still unclear as negotiations are still ongoing. The previous deal for ex-Russia BPI was reported at $390/mt CFR to Italy in the middle of November.
Market sources are waiting for new offers for pig iron from Donbass. They are expected at $390/mt FOB for low manganese material, if available.
The SteelOrbis reference price for ex-Black Sea BPI has remained at late last week’s level of $360-380/mt FOB as low-manganese pig iron is excluded.
