Despite the latest rises seen in the Chinese market and small gains in scrap tags this week, ex-Russia basic pig iron (BPI) market has remained under pressure of poor demand at the major outlets and high stocks.
The SteelOrbis reference price for ex-Russia BPI has inched down by $2.5/mt on average over the past week to $300-320/mt FOB Black Sea, with the midpoint at $310/mt FOB.
The major Russian producer has been insisting on $330/mt FOB offers but is it ready to give $315-320/mt FOB for 20,000-30,000 mt lots. However, even this level seems high for major buyers, in Turkey in particular. Even though scrap prices have setteled at $340/mt CFR and above, they are bidding at $330-335/mt CFR (equivalent to around $310/mt FOB Black Sea) for sizable pig iron volumes. It is connected with a lack of power at producers’ side and critically high stocks in Novorossiysk.
The tradable level for sanctioned Russian mills is assessed at not above $300/mt FOB, while trading has been limited.
Apart from Turkey, only Far East buyers have been showing some interest in purchases. Some offers for ex-Russian pig iron to Asia have been reported at $315-320/mt CFR, but most probably to be shipped form Far East ports of Russia.