CIS-based producers of basic pig iron (BPI) have resumed lively trading after a temporary pause in sales taken in order to observe market developments. As a result, at least 200,000 mt have been sold to the US and China since the end of last week and deal prices have moved up.
At the end of last week, Ukraine’s Metinvest sold 50,000 mt of pig iron to the US at $315/mt CFR for July shipment. According to some market sources, the deal price was $3/mt lower. “In any case, it is good news, as so far the majority of US customers have voiced bids lower than $305/mt CFR,” a trader commented.
Since the end of last week, Russia-based NLMK has traded a total of 100,000 mt to China. One cargo for July shipment was sold at $323/mt CFR last week, while the recent sale for another 50,000 mt for July-August shipment has been closed already at $334/mt CFR this week. The latest deal from Tulachermet was closed to China at $335/mt CFR for 50,000 mt for August shipment, SteelOrbis has learned. Ukraine’s ArcelorMittal Kriviy Rih is said to be still out of the market.
According to sources, demand from Europe-based customers remains muted and bids are still low. “I have not managed to sell even at $310/mt CFR to steel mills in Italy”, the trader said.
Offers to Turkey from CIS-based suppliers have been voiced at $312-315/mt CFR for July shipment, with no solid bids from customers. According to a local source, a $5/mt lower level may trigger some interest. “Turkey will have to buy because some HRC sales to the Far East have been concluded. However, the levels Turkish customers aim to get are still low”, another trader said.
As a result, SteelOrbis’ assessment for ex-CIS BPI prices has moved up by $8-12/mt over the past week to $298-307/mt FOB.