A few deals at slightly higher prices have been disclosed for ex-Russia basic pig iron (BPI) early this week to traders, which will target sales to the Asian market, SteelOrbis has learned from the market early this week.
Two or three deals for sizable lots of ex-Russia BPI were done to traders at $355-360/mt FOB last week, with a few of them done to Asian traders, who are planning or already in negotiations with Asian customers, in India in particular. The latest freight rates from the Black Sea to India are hardly below $50/mt for Handymax vessels, according to sources, making the deal prices around $405-410/mt CFR, but without taking into account the traders’ margins or other expenses. The previous deals were done at $380-400/mt CFR to India for over 100,000 mt of ex-Russia BPI.
“Not all pig iron will be sold to India. Chinese traders have taken positions,” a source said.
The SteelOrbis reference price for ex-Black Sea BPI has increased to $350-360/mt FOB, versus $345-355/mt FOB reported late last week. Lower-priced offers, usually seen from Donbass mills have disappeared, and now the major Russian mills are mainly active.