Prices for ex-Russia basic pig iron (BPI) have increased after the holidays, as confirmed in some deals to Turkey. But, in general, demand for Russian material has remained limited, so market sources are not sure if Russian BPI prices still have significant room for increases even though scrap prices are improving.
Deals for a total of 30,000 mt of ex-Russia BPI have been reported to Turkey at $327-330/mt FOB for February shipment. This price level translates to $352-355/mt CFR Turkey or slightly above. Some sources said that the volume was bigger, but Russian mills have not started to push March shipments yet.
The gap with scrap prices has remained at around $20/mt, with the latest deals for HMS I/II reported at $372.5-376/mt CFR. Though demand for pig iron in Turkey obviously improved after the New year holiday, a market source remarked, “There was some spark of buying, but it has been fading away again.”
Some enquiries for Russian material have been heard from Egypt, but the bid prices at $320-325/mt FOB have been too low for the sellers.
Higher grade pig iron prices have also increased, by $10/mt to $380/mt FOB Black Sea.
“It seems that pig iron shipments from Russian ports to Turkey have decreased slightly (due to storms), and this has immediately impacted the price. Furthermore, iron ore is rising and, therefore, so are production costs. The main question now is how long this will last,” a market source commented.
No activity has been seen for ex-Russia BPI in Asia over the past two weeks, with bid prices rare and at $305-310/mt FOB at the highest.
The SteelOrbis reference price for ex-Russia BPI has settled at $325-335/mt FOB with the midpoint at $330/mt FOB, up by $10/mt compared to late December.
