Though offer prices for ex-Russia basic pig iron (BPI) have been rather stable over the past week, there is stronger downward pressure on the market amid some increases in supply. Moreover, demand for pig iron from Russia has been rather limited in Turkey.
The SteelObris reference price for ex-Russia BPI has settled $2.5/mt lower on average over the past week at $340-355/mt FOB, with the midpoint at $347.5/mt FOB Black Sea.
The main offers from the leading Russian exporter of basic grade pig iron are at $355/mt FOB, slightly lower than $360/mt FOB two weeks ago. At the same time, there have been no major changes in indications on CFR basis to Turkey due to the rise in freight rates, with CFR offers being at $380-385/mt CFR, while the tradable level is not above $365-370/mt CFR.
Sales have been limited as another Russian mill has been actively offering a large volume in Turkey and the Mediterranean region, while buyers’ price ideas for this sanctioned mill’s material are at $360-365/mt CFR Turkey. “More offers are making the market depressed,” a market source said.
A rather complex situation has been seen in the Turkish finished steel market with some mills said to be stopping for maintenance works or reducing pig iron imports, especially from Russia, considering CBAM uncertainties and possible European limitations of imports due to the origin of feedstock.
