Prices for Russian basic pig iron (BPI) have been relatively stable over the past week, but on average the assessment has increased slightly, due only to higher offers as some mills have claimed the current prices are close to breakeven.
The SteelOrbis reference price for ex-Russia BPI stands at $300-320/mt FOB Black Sea, with the midpoint at $310/mt FOB, up by $5/mt.
Most offers have been heard at $315-325/mt FOB, and, though there has been talk about a sale at the lower end of the abovementioned range, there has been no confirmation of it. “There is no demand, so we are just keeping prices stable,” a seller said. One of the traders mentioned that, even considering the latest scrap prices at $340-346/mt CFR, there are no bids even at $335-340/mt CFR for pig iron. Most buyers understand that Russian mills have high stocks and keep producing, so they will have to give discounts to attract buyers.
At the same time, mills have said that, with the current exchange rate at $1 = RUB 78-79 and high costs, the breakeven point is near $305-315/mt FOB Black Sea.
