Ex-Russia basic pig iron (BPI) prices have rebounded since late last week as there have been fewer aggressive offers available in the market and most mills who are still active have raised their targets, following the previous hike in the Turkish scrap market. Nevertheless, buying has been rather silent in the major sales destinations.
The SteelOrbis reference price for ex-Russia BPI has been settled at $320-350/mt FOB Black Sea, with the midpoint at $335/mt FOB, up by $17.5/mt over the past week.
In Europe, there have been offers from some sellers at $370-380/mt CFR, translating to $340-350/mt FOB Black Sea, which have been assessed as too high at the moment. Large buyers’ price ideas for the next year’s quota have been at $350-355/mt CFR or $320-325/mt FOB, even indicating a decline by another $5/mt. There have been rumours of some deals done, but they have been rejected by major market players. “Until the new quota opens, none of the European buyers will report the real deal prices. This is dangerous because of possible sanctions. And we will see the real market level only after January 1,” a market source said. He also added that, according to market estimates, by the end of February the 2025 quota for Russian BPI in Europe will end. “Thus, in March we will see both an increase in demand and a decrease in supply, which usually ends with a price jump,” a source commented. Nevertheless, in the current weak steel market conditions, European sources are not talking about any raw material price increases, saying that they are also receiving offers from Brazil, India and Indonesia.
In Turkey, after scrap prices improved, offers for BPI from Russia have been heard at $370/mt CFR, translating to $350/mt FOB or so. The tradable level has been lower, at around $355-360/mt CFR at the highest. An offer for low-manganese BPI to Turkey at $340/mt FOB has been withdrawn, and the targeted level is assessed at $350/mt FOB and above.
There have been no fresh deals to India as at least one mill from Russia has been out of the market, being sold out for January shipment. Other producers prefer to negotiate in other higher-priced markets.