While buying interest for ex-CIS as well as for ex-Brazil basic pig iron (BPI) has continued to be constrained by the divergence between offers and bids, suppliers of ex-India BPI have intensified their efforts to sell material. “The Indians are trying to liquidate some material at discounts, partly owed to soaring Covid cases. However, apart from India, the global pig iron market remains quite strong, with the finished steel market in a severe supply deficit,” an international trader commented with regard to the most recent developments in the market.
Specifically, SteelOrbis has learned of a sale of 30,000 mt of ex-India BPI to China at $600/mt CFR, concluded about ten days ago. “Besides the low level, in general the price includes a waiting time for quarantine if any happens,” according to a reliable source. Prior to the above deal, 30,000 mt of ex-India BPI was sold to a key Turkish steelmaker at below $630/mt CFR, for prompt shipment. “I think the markets are going down, with buying sentiments having changed noticeably within the past weeks,” the international trader commented.
Meanwhile, other global BPI suppliers (both CIS-based and Brazil-based) have still no intention of selling material at low prices. “As before ,we are aiming to get $665-670/mt CFR Port of New Orleans, for August shipment,” one key Brazi-based supplier said. In the meantime, another Brazilian seller has voiced BPI offers at $625/mt FOB Brazil. CIS-based BPI suppliers prefer to negotiate prices with customers individually, not disclosing price levels officially. “We are not in a hurry, as we have already sold out August and September volumes,” a representative of a Russian mill said. “The pig iron market is quiet lately, with the main [located in the US] customers having already restocked”. Currently, SteelOrbis’ assessment for ex-CIS BPI prices stands at $630-640/mt FOB Black Sea, versus $635-645/mt FOB Black Sea a week ago.