The outlook as regards further developments in the global basic pig iron (BPI) segment has been altering simultaneously with sentiments in the global scrap and steel markets. Accordingly, with scarce trading and bids lower than target prices, some suppliers worldwide have started to lose confidence as regards the duration of prices at high levels. Global BPI sellers have been no exception. Moreover, following the most recent ex-India BPI sales at aggressive prices, some of the traditional BPI suppliers have decided to secure themselves from possible decreases in prices in future and appeared more willing to conclude deals this week.
Specifically, by the end of the current week, a Russia-based mill sold a 50,000 mt cargo of BPI, for July shipment to the main US steelmaker at $645/mt CFR Port of New Orleans, thereby reducing the price in the US market by $27/mt compared to the booking concluded for ex-Russia BPI at the beginning of June. Taking into account the likely freight rate of $30mt, the FOB-based price is estimated at $615/mt FOB, down $20/mt on average compared to SteelOrbis’ assessment for ex-CIS BPI prices a week ago. “The scrap market in the US remains bullish. I guessed we will stagnate somewhat at a high level. But this sale says the opposite,” an international trader said with regard to the abovementioned deal.