Prices for ex-Russia basic pig iron (BPI) are stable compared to last week and some sellers have started June shipment negotiations.
The SteelOrbis reference price for ex-Russia BPI has remained stable on average over the past week, but the range has narrowed to $360-365/mt FOB Black Sea, from $355-370/mt FOB in early April.
Most of the recent small-volume deals were still for the Turkish market. Deal prices were heard to be stable at $385-390/mt CFR for June shipment. “Buyers have no alternatives. Scrap is expensive [$394-400/mt CFR for HMS I/II] and shows no signs of going down. So, people are gradually buying pig iron,” a trading source said. The lower price for Russia BPI was seen in a deal from a sanctioned mill at $380/mt CFR, but it was done two weeks ago, and there are no such indications in the market now. “I see the pig price at $390/mt CFR, somewhere in between scrap and HBI,” a Turkish source said.
The latest offers for Libyan HBI have been heard at $380-383/mt CFR, but for small position cargoes and prompt shipment, while similar material is offered at $385/mt CFR to Italy. The lowest HBI price has been heard from a Russian producer at $360/mt CFR, but there have been no reports of deals as there are fewer buyers for HBI even at this price, as scrap and pig iron are more popular among mills in Turkey.
As for the other sales destinations of Russian pig iron exporters, there has been a lack of activity after a large-volume sale to Asia at $385/mt CFR for May shipment done in late March.
