Prices for ex-Russia basic pig iron (BPI) have increased slightly in the latest deals to Turkey, but they are still lagging behind scrap. Sellers hope for a further gradual gain, but, since there is still a very limited number of active buyers for Russian material, the outlook is unclear.
Some deals for ex-Russia BPI have been signed at $310/mt FOB Black Sea (translates to around $335/mt CFR at the highest). This is in line with the assessments a week ago, but higher than the tradable level of $300-305/mt FOB seen during most of September. “Now, I think the workable level should be $315/mt FOB Black Sea, as scrap has increased,” a source said.
This week, benchmark HMS I/II (80:20) scrap has settled at $342-351/mt CFR, according to SteelOrbis, but sources trading pig iron said that it has been hard to get a bid above $335/mt CFR so far as “the Turks see how bad demand elsewhere.”
Some small interest has been seen also in the MENA region for ex-Russia BPI, but the price level was also not above $310-315/mt FOB.
“Demand in the Far East [which was the major driver in past months] has worsened a lot. The long holidays in Japan and South Korea, plus the lack of strong needs there, put pressure on suppliers,” a market source said.
The SteelOrbis reference price for ex-Russia BPI has increased further by a slight margin - to $310-315/mt FOB Black Sea, with the lower end adding $5/mt over the past week.