Russian basic pig iron (BPI) exporters have remained under pressure from weak sentiments in the scrap segment, but mills have mainly been resisting discounts and prefer to stay out of the market with big volumes, given the strength of the ruble.
The SteelOrbis reference price for ex-Russia BPI stands at $370-375/mt FOB, stable over the past week, but the price level is only indicative as large mills have not been giving any firm offers. Most of them still have August shipment allocations, but are not in the mood to push these volumes in export markets, after some production reductions and the strengthening of the ruble.
The tradable level is assessed at $368-370/mt FOB Black Sea and only for limited volumes. In particular, a few sales of Russian pig iron have been concluded to Turkey at $392-395/mt CFR, while rare offers are still close to $400/mt CFR. “With the negative trend in scrap, I think we should see a lower level by the end of June,” a trader said, adding that Turkish mills may target $380-385/mt CFR once they resume active bookings.
In addition, one medium-sized cargo has been booked from Russia to the MENA region at around $400/mt CFR.
Some low-priced HBI from such sanctioned destinations like Venezuela and Iran are heard to have been offered at $350-360/mt CFR Turkey.
