Prices for ex-Russia basic pig iron (BPI) have been relatively stable while fluctuating at a low level, after previous declines. However, extremely weak demand and negative expectations may push prices down more in the coming weeks. Some demand for ex-Russia BPI has been seen only from the Far East, while European and Turkish buyers are staying away from active purchases.
According to market sources, around 25,000 mt of ex-Russia BPI were traded at $380-390/mt CFR Taiwan last week. This price translates to $360-365/mt FOB Far East ports of Russia, and this level has been assessed as “good”, considering the current negative market conditions.
The SteelOrbis reference price for ex-Black Sea BPI has remained at $330-350/mt FOB, stable from late last week. “I don’t see many markets for Black Sea suppliers. Prices for scrap are expected to fall by at least $10/mt [in Turkey], and so pig iron will be in freefall if sellers want to push volumes,” a market source said.
The traditional markets for ex-Russia and ex-Donbass BPI - Turkey and Europe - have been very slow. “If someone can buy at $370/mt CFR [Italy], I am sure suppliers [from Russia] will be happy,” a source said. Previous offers were at $390/mt CFR, as reported last week, but with lower freight for the large volumes $370/mt CFR Europe may translate to $340-345/mt FOB.
Overall offer volumes from Donbass have been limited, and only traders who already have allocations can offer. “I believe that, if there is someone who wants to buy in Turkey, that sellers who have volumes will easily give $330/mt FOB,” a trader said.
