Prices for ex-Russia basic pig iron (BPI) have been under pressure this week as even though the overall availability has been reduced and suppliers have been targeting higher levels, the surging freight rates have been impacting and the trading at the major outlets have remained limited.
The latest deals for ex-Russia BPI have been done to India. In addition to the deal reported last week at $346/mt FOB, more tonnages heard as traded at up to $350/mt FOB with the total volumes sold estimated at 110,000 mt. After that one of the major Russian suppliers has hiked offers to $358-360/mt FOB to India. However, the higher prices seem not workable for the buyers, as freights have already reached $50/mt to some ports, making the CFR price at up to $410/mt CFR. This is compared to the CFR deal price of $380-385/mt reported for last week's sale.
In the Italian market, there has been still a lack of activity with buyers only checking the offers, which have been not below $355-360/mt FOB Black Sea. But with the current rises in freights, this level translates to $390-395/mt CFR already. While buyers’ target in the next round would hardly be above $380/mt CFR, market sources believe, which is around $345-350/mt FOB.
One of the Russian mills has voiced even $400/mt FOB offers for high grade low-manganese material, which has been assessed as fully out of real market level. “There are not many offers in the market. NLMK is not in the market, Severstal as well, both Donbass mills are also not offering,” a trader said. One of ex-Donbass BPI producers has stopped since early July, according to some market sources.
The SteelOrbis reference price for ex-Black Sea BPI has been remained stable from last week at $335-350/mt FOB.
