Prices for ex-Russia basic pig iron (BPI) have continued to follow a downtrend due to poor demand, high unsold stocks and no optimism in the market. Even stabilization of scrap prices in Turkey have failed to support BPI tags.
The tradable level for ex-Russia BPI to Turkey has been at near $305/mt FOB Black Sea, translating to around $325-330/mt on CFR basis, which is at least $5/mt below last week. Some market sources have reported small sales at abovementioned level, but it could not be confirmed by the time of publication and in general the trading activity has been described as “poor” or “almost absent”. “This is the new market level but offers can be still higher and if producer needs to sell, there is no other way but to cut prices or cut production,” a market source said.
In the high-grade pig iron segment (material with high-manganese and high-sulphur content), a deal from Russia has been heard at $370/mt FOB, while the previous contract for the similar grade was at $398/mt FOB in early July.
There are still very high inventories in the Novorossiysk port of near 150,000 mt and demand from the Middle East buyers is almost absent.
The SteelOrbis reference price for ex-Russia BPI has decreased further this week to $300-310/mt FOB Black Sea, with the midpoint at $305/mt FOB, down by $5/mt over the week.