European customers have been trying to push down import pig iron prices in July due to the weak steel market and difficulties in sales of pig iron of major sellers to other destinations. Nevertheless, there has been no drastic fall in offers as major sellers have been still assessing the market, not willing to cut prices for the market that can arrive in September and beyond. For the Mediterranean HBI market, prices have even posted a small increase compared to June.
Offers for import BPI (basic pig iron) to Europe have been still at $420-435/mt CFR depending on the seller. “For the moment there is a lack of firm offers. Shipment is September with arrival in October so no one is actually interested in Europe for that,” an international trader said.
Some large buyers indicate the tradable level at $400/mt CFR and believe that they will be able to get this price from Brazil soon. But at the most sources polled by SteelOrbis said there are no firm offers at this level as “Brazilian producers stopped giving prices and just try to collect inquiries,” another trader said. After the US announced 50 percent tariff on ex-Brazil goods, there has been a huge uncertainty for Brazilian pig iron exporters and the latest export price of $400-405/mt FOB has been mainly nominal.
The reference price for imported BPI in Europe has been lowered to $400-425/mt CFR, down by $10/mt from a month ago.
In the Mediterranean HBI market, there have been a few deals done for ex-Libya and ex-Venezuela HBI. One cargo has been priced at $320/mt CFR for Europe. Another deal for ex-Venezuela material has been signed at $315/mt CFR in MENA region. Also, ex-Russia HBI has been of offer at $320/mt CFR.
In the European import HBI market, the tradable level has increased by $5/mt on average over the month to $315-325/mt CFR.