Prices for ex-Russia basic pig iron (BPI) have remained under pressure over the past week, even though scrap prices in Turkey – the major sales destination – have been rather stable. The pressure is still coming from high allocations at mills and limited demand in the global market, with the European and US markets closed to Russia.
Limited volumes of Russian basic BPI have been heard sold at $310/mt FOB Black Sea or $330-335/mt CFR Turkey this week. For larger lots, bids have been still lower – $300-305/mt FOB, market sources said. Even though, officially, mills are trying not to go below $320/mt FOB, the selling pressure and high stocks at ports have been the major reasons for lower prices. “Demand is rather silent in Turkey,” one of the market sources said, adding that buyers are focusing only on covering urgent needs and special qualities, while most steel mills are staying away. One small deal for 5,000 mt of high-grade low-phosphorus and low-sulfur pig iron was heard at $400/mt CFR in Turkey, but this price is out of the reference range for basic pig iron.
Also, a lot of 40,000 mt of Russian BPI was traded to the Middle East at $345/mt CFR last week. This price may translate to $305-310/mt FOB Black Sea basis.
One more Russian mill reportedly sold a parcel of pig iron to Latin America, but the price level had not been confirmed at the time of publication.
“Russian southern ports [in the Black Sea] are congested and with the stocks there at maximum, so some [sellers] may ship from the Baltic,” a market source said.
The SteelOrbis reference price for ex-Russia BPI has settled at $300-315/mt FOB Black Sea, with the midpoint at $307.5/mt FOB, moving down by $5/mt over the week.
