Prices for ex-Russia basic pig iron (BPI) have increased, but mainly in offers, as customers have been refusing to accept the mills’ targets and are avoiding purchases.
The major Russian mills have been asking for $340-345/mt FOB for March shipment, up from the sales seen in mid-January at $327-330/mt FOB. Some small tonnages were negotiated at $333-335/mt FOB Black Sea last week, but this level is said to be the highest tradable level now. “We actually were thinking that near $330/mt FOB is a peak and that buyers will push for $315/mt FOB next month,” a source said.
The latest ex-Russia offers translate to around $365/mt CFR Turkey, while the HMS I/II prices are stable at $368-376/mt CFR Turkey this week. Buyers were targeting pig iron prices $20/mt below HMS price levels, sources have said. Demand from other destinations is weak and not providing any support for Russian exporters, so trading this week has been close to zero.
The SteelOrbis reference price for ex-Russia BPI stands at $330-340/mt FOB, up by $5/mt on average over the past week mainly amid higher sales price targets and only a tiny increase in tradable levels.