European importers have been showing interest in pig iron imports, with purchases from four different sources confirmed over the past few weeks. This has helped prices to recover, but deals for import HBI are still awaited and prices may also stay firm amid the limited allocation in the global market.
As reported earlier this week, 50,000 mt of ex-Brazil BPI with 0.15 percent phosphorus content changed hands at $413-416/mt CFR, 30,000 mt of Indian BPI were traded to Europe at $400-405/mt CFR and higher quality Ukrainian pig iron was sold at $420/mt CFR. In addition, a decent volume of ex-Zimbabwe pig iron has been sold to Italy at $400-405/mt CFR for delivery by the end of this year, but a few sources said that the price was higher - at $410/mt CFR with some extras still not included. “The price for Zimbabwe pig iron should be close to the Indian price [which is usually priced below Brazil and Ukraine due to its quality]. Since after the first shipment the buyer was not that satisfied with the quality, he will ask for discounts,” a market source said. “The market is a bit tense but just because of the year-end and the need to secure volumes,” an importer said.
At the same time, there has been a lack of confirmed bookings of HBI. A few sources believe that new deals have to be done close to $350/mt CFR due to the very limited volume offered in the market. The previous deal from Libya was at $320/mt FOB, but “it is hard to find material and prices for non-sanctioned material are on the rise,” a trader said. European customers are targeting $335-340/mt CFR, but this price is hard to find in the current conditions. In North Africa, buyers would also target $340/mt CFR at the highest.
The SteelOrbis reference price for import HBI in Mediterranean has settled at $340-350/mt CFR, versus $330-350/mt CFR in late October.