Sentiments have been mixed in the global basic pig iron (BPI) market this week as Brazilian suppliers have been trying to push prices up, seeing some better expectations for scrap market movement in the US. However, in the Black Sea market, prices have continued to soften, reflecting weak conditions in Europe and Turkey.
Offers for ex-Brazil 0.15 percent phosphorus content BPI have been reported at $420/mt FOB, versus previous deals at $407-410/mt FOB reported last week. No new transactions have been done to the US as mills there are resisting prices above $440/mt CFR (translates to $410/mt FOB) so far. However, there are expectations that prime grade scrap in the US may improve by up to $20-30/gt for November due to the previous reduced availability, which is “great news, but for the price perspective, not for now,” a Brazilian supplier said. Offers for ex-Brazil 0.10 percent phosphorus content BPI have been assessed at not below $430/mt FOB, translating to $460/mt CFR New Orleans.
However, the SteelOrbis reference price for ex-Black Sea BPI has come down to $330-355/mt FOB, with a midpoint at $342.5/mt FOB, down by $7.5/mt on average over the past week.
Offers for pig iron from the Donbass, the Ukrainian territory temporarily occupied by Russia, have been at $335-340/mt FOB Black Sea, while some traders said that “$330/mt FOB is the actual price in negotiations.” This level has been considered at the lowest and it translates to around $355-360/mt CFR Turkey, with no new deals reported so far.
In Europe, the trading has been limited to a minimum. The workable price level for ex-Russia material to steel mills in Italy has slipped from $380/mt CFR two weeks ago to $370/mt CFR at the highest, being $340/mt on FOB basis. The price for foundries is $380-385/mt CFR. At the same time, though most Russian mills agree that the tradable level is not above $350-355/mt FOB from the Black Sea at the moment, they keep official offers high, at not below $380/mt FOB.