The positions of CIS-based producers of basic pig iron (BPI) are rather strong, largely owing to the positive sentiment in the global scrap market and robust demand from China. As a result, being largely sold out, the sellers have decided to increase their offer prices, but also supported by the recent deals from Brazil to China closed at $340/mt CFR.
Currently, most offers of ex-CIS BPI are at $315/mt FOB Black Sea, while some buyers have reported they have received even $325-335/mt FOB, but are not interested in booking at that level. This week ex-CIS sellers have been active in talks with the US. SteelOrbis has been informed of one ex-Russia cargo at $320/mt CFR, with the FOB level being estimated at around $300/mt FOB. According to sources, another booking was done for ex-Ukraine origin BPI at the same price level. Last week, a deal from Ukraine was closed at $5-8/mt lower, as SteelOrbis reported.
Demand from Europe-based customers remains subdued, with only some small spot bookings fixed at $308-310/mt from port in Italy. Ukraine’s Metinvest is said to be offering at $328/mt CFR, again to Italy.
Recent offers from the CIS to Turkey have been reported at $325/mt CFR, versus $310-315/mt CFR in rare bids. No fresh deals have been reported.
As a result, SteelOrbis’ assessment for ex-CIS BPI prices has moved up mostly by $2-8/mt over the past week to $300-315/mt FOB. Some volumes for August production are available in the market, while some mills are expected to start offering for September shortly, SteelOrbis understands.