Prices for ex-Russia basic pig iron (BPI) have rolled back this week after the brief rebound seen last week. Market sources believe that low bids and the near absence of demand from the major trade destinations have overcome the previous support from higher scrap prices in the benchmark Turkish market.
Major mills from Russia have cut offers by $10/mt over the past week to $310-320/mt FOB since, even despite the rise in scrap prices last week, Turkish customers have not been eager to purchase Russian pig iron at higher prices. Moreover, possible stricter regulations for using Turkish products made with Russian raw materials have emerged in Europe, which have made Turkish mills even more cautious. The tradable level for import BPI has been assessed at $330-340/mt CFR Turkey, but only indicatively. “There is again silence in the market. I think Russia can offer $310/mt FOB [equivalent to $330-335/mt CFR], but no one is in the market to buy, so this is a price without the real market,” a market source said.
While the major Turkish market remained quiet, there has been information about a large sale of 40,000 mt of Russian pig iron to Asia at $340-345/ mt CFR. This price translates to $300-305/mt FOB Black Sea at the highest and it is in line with the previous deal done to the same destination in November.
The SteelOrbis reference price for ex-Russia BPI has declined by $10/mt over the past week to $300-320/mt FOB, with the midpoint at $310/mt FOB Black Sea.
