Russian basic pig iron (BPI) suppliers have been targeting sales to the Turkish market as the quota in Europe is very close to being exhausted. Though offers from some suppliers have been higher owing the upward trend globally, the latest deals have been confirmed at stable levels only.
In Turkey, one of the main Russian BPI exporters managed to sell a sizable volume of over 50,000 mt at $330/mt FOB last week, translating to $350/mt CFR at the highest. This is almost in line with the previous contracts reported to this destination from Russia at $330-335/mt FOB. The lower offers have been available from one sanctioned Russian mill at $325/mt FOB. At the same time, offers from Donbass, the Ukrainian territory occupied by Russia at the moment, have increased by $5-10/mt over the past week to $330/mt FOB already.
Low manganese BPI from one Russian mill has been available at $340/mt FOB to Turkey, while the previous price from the same mill was at $335/mt FOB last week. Some offers for higher grade material have been heard at as high as $350/mt FOB or $370/mt CFR Turkey, but “The Turks are not ready to sign deals at these prices. But if there is no change in the trend [which is positive now], buyers will start to replenish stocks, understanding that the price bottom has passed,” a trading source said.
Also, one small deal from Russian mill to Turkey has been reported at $380/mt CFR late on Friday, translating to $355-360/mt FOB Black Sea. However, market sources believe this has been for semi-nodular pig iron, not basic.
In Europe, the price indication for Russian pig iron has been at $350/mt CFR, translating to $320/mt FOB. But trading is almost fully halted as the remaining quota for this year is below 100,000 mt out of 700,000 mt. In this situation, offer prices for some non-toxic origins have been on the rise, heard as high as $450/mt CFR, while the previous sale for ex-Ukraine pig iron was reported last week at $425/mt CFR for a non-steel mill buyer. “There is no increase in physical deals, but offers are increasing and physical prices must follow,” a Europe-based source said.
The SteelOrbis reference price for ex-Russia BPI has settled at $320-335/mt FOB, with the midpoint at $327.5/mt FOB, increasing by $5/mt over the past week.