Poor demand and mainly a pessimistic outlook on future developments have continued to put the pressure on the global basic pig iron (BPI), leaving no other choice rather than to cut prices in order to obtain any orders.
Specifically, SteelOrbis has learned of a sale of ex-Russia BPI, done to China last week. Though the deal price which has leaked to the market initially was $545/mt CFR, a few market participants are convinced that the business was done at much lower price, allegedly at $530/mt CFR. “There was an offer from Brazil at $540/mt CFR and nobody had any interest to buy. Where is the logic to book more expensive, especially in the bearish market?” commented the major Asia-based trader with regard to the above mentioned booking. “Actually it does not matter whether the price was $530/mt CFR or $545/mt CFR, it is a drastic fall in prices,” another international trader stated. Taking into account the assessed freight at $60-65/mt, the FOB price is estimated to be at least $480-485/mt FOB Black Sea, down $20-25/mt from offers voiced last week.