Prices for ex-Russia basic pig iron (BPI) have increased over the past two weeks, following the hike in scrap prices in Turkey. However, very limited volumes have been sold at higher levels as buyers have been resisting accept this increase and have been postponing large-volume orders.
The SteelOrbis reference price for ex-Russia BPI stands at $365-380/mt FOB Black Sea with the midpoint at $372.5/mt FOB, which is up by $5/mt over the past week. The higher end of the range corresponds to sellers’ offers and very limited small-volume deals. A 5,000 mt lot of Russian BPI is heard to have been sold at $405/mt CFR to Turkey, which translates to $380/mt FOB or slightly below. “But there are very few deals. There is a nuance: Ural Steel delivered 80,000 mt of pig iron to the port [of Novorossiysk], not the usual 120,000 mt [monthly sales to the export market from Ural Steel are in the range of 120,000-150,000 mt]. The reduced supply could play a role in increasing pig iron prices,” a market source said. However, sources polled by SteelOrbis said there has been no reduction in production at this mill and that the producer may be increasing transportation to the port in future.
As for higher-volume deals and negotiations, buyers are still unwilling to accept much above $365/mt FOB, which translates to $390/mt CFR Turkey, even though HMS scrap has exceeded $410/mt CFR in some deals to Turkey.
