Fresh booking from Russia to China sinks global BPI market further

Wednesday, 25 August 2021 14:13:43 (GMT+3)   |   Istanbul
       

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.


Similar articles

Ex-Brazil BPI exporters achieve slight rise in latest deals to US amid better scrap sentiment

28 Mar | Scrap & Raw Materials

Japanese crude steel output down 3.8 percent in February from January

27 Mar | Steel News

Price gap between low and high-phosphorus Brazilian BPI narrows in last deals

25 Mar | Scrap & Raw Materials

German crude steel output increases by 4.6 percent in January-February

25 Mar | Steel News

Ukraine’s ArcelorMittal Kryvyi Rih posts lower pig iron output due to Russia’s attacks on energy infrastructure

21 Mar | Steel News

Buyers from Turkey and Italy seek lower ex-Russia BPI prices even though scrap lacks direction

20 Mar | Scrap & Raw Materials

Turkey’s pig iron imports up 5.0 percent in January

20 Mar | Steel News

China’s crude steel output up 1.6% in Jan-Feb despite unexpectedly weak post-holiday demand

18 Mar | Steel News

Ex-Brazil BPI market at standstill due to high prices for buyers, ex-Russia sellers under strong pressure

15 Mar | Scrap & Raw Materials

Local pig iron prices in China - week 11, 2024

15 Mar | Scrap & Raw Materials