The global basic pig iron (BPI) market has remained extremely bearish this week as trading activity in the major outlets has been minimal, as scrap prices have been falling, and since further declines are inevitable.
In the main import BPI market, the US, the mood has worsened, with expectations for domestic scrap prices to go down by $30/gt in May. The leading Brazilian BPI sellers have been trying to hold offers at $530/mt FOB, which translates to $560-565/mt CFR New Orleans, but for now it has become clear that in the new round of sales to the US, prices will be at lower levels. “Brazilian exporters are waiting for the next US demand. One of them is expected to lower its price by around $30/mt. This is only an assumption for now, but the mood is clear,” a trading source said.
Indian BPI suppliers has been floating export tender this week with the closing date on April 28. Though results of the auction have not been confirmed by the time of publication, market sources said that the mill can sell at $490/mt FOB or slightly below. But with the current low demand in most outlets, the successful close of the tender has been questionable, some sources believe.
Ex-Russia and ex-Donbass BPI prices have continued to weaken amid the slackening demand in Europe and Turkey. The reference price for ex-Russia BPI to Italy has been at $450/mt CFR this week, down by $20/mt from last Friday, as “$400/mt FOB will already be a good price for Russia,” a source said.
Turkey’s import BPI market is almost halted with buyers waiting for more scrap price decreases. An offer for ex-Donbass BPI has been heard at $370/mt FOB, translating to around $400/mt CFR or slightly below, down by $10/mt over the past week. However, this price level has been assessed as too low by a number of market sources. Offers from the major Russian suppliers have been reported at $425/mt CFR, or $395-400/mt FOB Black Sea.
In general, ex-Russia BPI prices, which were at $400-420/mt FOB last week, have slıpped to $390-400/mt FOB at the moment, depending on destination. Asian buyers have been receiving offers for ex-Russia pig iron at $450-460/mt CFR.