Prices for import basic pig iron (BPI) and hot briquette iron (HBI) in the European market have remained under pressure from slow demand as buyers have not been willing to increase stocks for the summer months and due to the negative mood in the global metals markets.
The reference price for import BPI in Europe has been at $400-445/mt CFR or $422.5/mt CFR as a midpoint, where the higher end of the range represents offers, while buyers’ bids are hardly above $400-410/mt CFR.
Offers for Ukrainian pig iron were heard at $450/mt CFR last week, and then at $445/mt CFR and $440/mt CFR this week, according to some market sources. Moreover, even some traders able to get $425/mt CFR for import BPI in Europe have not been able to take positions due to minimal demand from end-users. Market sources said that the highest bids for limited volumes are at $410/mt CFR.
Brazilian suppliers have been more eager to sell elsewhere than in their traditional market, the US, after a price fall in the past few weeks. But at the moment, offers from Brazil, which have been at $410-415/mt FOB at the lowest since last week, are not acceptable in Europe, as they translate to around $445-450/mt CFR at the lowest for large volumes.
Also, one Indian mill has been in the market with 30,000 mt of pig iron for export, but no sale has been finalized, according to market sources, with very low bids from buyers, at $340-360/mt FOB, versus the target level at $370/mt FOB at the lowest.
In the HBI segment, the tradable level for import material in Europe has been at $310/mt CFR, while offers have been coming for ex-Middle East and ex-Asia HBI at $320-350/mt CFR depending on supplier. “I would say that the market price is $310/mt. For buyers, it is the target level on CFR basis, for sellers, offers on FOB basis,” a trading source said.