The mood among Russian basic pig iron (BPI) exporters has remained bearish this week amid scarce trading and falling scrap prices in Turkey.
The SteelOrbis reference price for ex-Russia BPI has settled at $325-340/mt FOB, with the midpoint at $332.5/mt FOB Black Sea, down by $2.5/mt on average from last week as the higher end of the range has slipped by $5/mt.
The higher end of the range - $340/mt FOB Black Sea - corresponds to the latest tradable level in Europe. There have been reports that buyers in Europe have been more active in negotiations for import pig iron and some deals are possible at $370/mt CFR (equivalent to $340/mt FOB for medium and large lots), but there has been no confirmation of finalized bookings. Last week, a deal rumored for 30,000 mt of Russian BPI at $360/mt CFR was assessed as true by a number of sources, but “I believe only they [the mill] managed to give this price,” a market source said, adding that another seller from Russia is still targeting $380/mt CFR.
In Turkey, after HMS scrap prices have fallen below $340/mt CFR, the tradable level for import BPI has dropped to $350-355/mt CFR, from $360/mt CFR last week. There has been talk that high-grade pig iron (nodular or semi-nodular) was sold to Turkey at $360/mt FOB or $380/mt CFR last week. However, one source added, “This week, I think, this price is already high.” Moreover, some sources have already started to receive bids from Turkey for basic grade at equivalent to $320-325/mt FOB.
In India, the latest deal price from Russia was done at $365/mt CFR, down from the rumored $368-370/mt CFR reported last week. Some market sources believe that there has been no new deal, but that the $365/mt CFR level accurately reflects the current market price. With freight of $40/mt and higher, this price translates to $325/mt on FOB Black Sea basis.