Some increase has been reported for ex-Russia basic pig iron (BPI) prices over the past week, though it has been mainly based on higher offers and indications in the market rather than confirmed in deals.
Most offers have been heard at $315-325/mt FOB Black Sea, while earlier this week the sellers’ price ideas were at $310/mt FOB. This level translates to $335-345/mt on CFR Turkey basis, though no deals at higher levels have been reported so far. Some sources in the Turkish market said that, with scrap prices hitting and exceeding $360/mt CFR, some mills will still be eager to buy import pig iron at lower prices. “Scrap collection in Russia has practically stopped due to low prices. This will cause a shortage in winter and it will boost local demand for pig iron. As a result, this will lead to a decrease in pig iron export allocations and, possibly, provide an opportunity to increase export prices,” a market source said. However, for the moment, there has been no reduction in supply of pig iron from Russia.
In alternative markets like India, the highest tradable level is equivalent to $300-305/mt FOB Black Sea.
The SteelOrbis reference price for ex-Russia BPI has settled at $305-320/mt FOB with the midpoint at $312.5/mt FOB Black Sea, up by $7.5/m on average over the past week.
At the same time, since the supply volumes of high-grade pig iron from Russia are limited, tradable prices have increased by another $10/mt compared to the first half of November, with one deal heard at $375/mt FOB.
