The mood in Russia’s basic pig iron (BPI) export market has worsened slightly this week as demand has been slow and most buyers have been focusing on scrap. Nevertheless, sales to Turkey have continued and some market sources believe that prices may rebound a little by the end of the month, if support from scrap is decent.
There have been reports of sales of ex-Russia BPI at $360/mt FOB Black Sea. “This is a slight correction, as mills abandoned earlier targets of $365/mt FOB,” a market source said. Deals have been reported at $380-390/mt CFR on CFR basis depending on the volume. Low-volume bookings correspond to the higher end of the range, while the price for 15,000 mt lots or above is assessed at $380/mt CFR. “Scrap prices have stopped rising, and everyone is looking in that direction, expecting pig iron to decline… But within a month, if peace is established in the Middle East, I expect prices for both scrap and pig iron to rise further,” a trader said.
The SteelOrbis reference price for ex-Russia BPI has settled at $360/mt FOB Black Sea, down $2.5/mt on average over the past week.
