Ex-Russia BPI prices vary significantly depending on quality and sanctions, Turkey still main focus

Friday, 28 February 2025 18:06:42 (GMT+3)   |   Istanbul

Ex-Russia basic pig iron (BPI) exporters have still been focusing on negotiations with Turkish buyers as the quota in Europe is almost finished and bids in Asia have been at very low levels. Prices have been depending a lot on the grades with low-manganese pig iron supply being limited.

The SteelOrbis reference price stands at $320-345/mt FOB Black Sea with the midpoint at $332.5/mt FOB, moving up by $5/mt on average from $320-335/mt FOB last week.

At least two sanctioned mills have been in negotiations in Turkey at $340-345/mt CFR, translating to $320-325/mt FOB. Though this has not been confirmed by the time of publication, some tonnage for April shipment could be sold these days. At the same time, the tradable level for ex-Russia non-sanctioned mills is at $350-355/mt CFR, translating to $330-335/mt FOB Black Sea, in line with the previously reported deals.

Nevertheless, offers for higher quality low-manganese pig iron from Russia have been heard at as high as $370/mt FOB due to the production cuts at the major mill supplying this grade. In mid-February, the mill was targeting $335-340/mt FOB.

In Europe, only around 30,000 mt of the ex-Russia quota is left out of the total 700,000 mt allowed to be shipped in 2025. That is why the tradable level has remained indicatively stable at $350/mt CFR at the highest. But trading has been close to zero in general in the import market as Brazilian suppliers have been fully focused on the US, and demand in Europe has been insufficient to accept high prices for the raw material.

In India, the workable price for ex-Russia BPI has been heard at $320/mt CFR, translating to $280/mt FOB Black Sea, but no new deals have been reported so far.


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