Negotiations for ex-Russia basic pig iron (BPI) have been more active this week after suppliers cut prices. A few deals have been reported to India and Italy, while Turkey is in waiting mode.
Two deals for 30,000-35,000 mt of BPI have been closed by Russian supplier to India at $407-413/mt CFR, SteelOrbis has learned from the market. The material is expected to be shipped from Far Eastern ports of Russia and the FOB level is assessed at around $365/mt.
In addition, there have been small sales for around 5,000 mt to Europe at $420-425/mt CFR, which has been assessed by market sources as too high. Last week's offers were at $425-430/mt CFR for small volumes. Moreover, a bigger lot of around 30,000 mt is rumored as having been traded to Italy at $400-410/mt CFR, translating to $350-360/mt FOB Black Sea. This price level has been targeted by customers since last week, so now this means they have managed to push the real market price to the desired level. However, according to market sources, the material is from one of the sanctioned Russian mills, while two still non-sanctioned producers from Russia have not been selling. “It is strange that they can sell to Italy,” a trader commented, adding that this exporter must have an urgent need to push volumes, having had weak semis sales for a while.
Offers for ex-Donbass BPI have been heard at $360/mt FOB, which translates to $385-390/mt CFR Turkey. A deal has been rumored at $350/mt FOB, but this remains unconfirmed by the time of publication. “It will not be a big surprise since scrap in Turkey is also softening and the price of $375-380/mt CFR for pig iron may be discussed by buyers,” a Turkey-based source said.
The SteelOrbis reference price for ex-Black Sea BPI has settled at $350-370/mt FOB, versus $350-375/mt FOB last week.
