Despite strong divergence in sentiments among players in the global basic pig iron (BPI) market and a cautious mood among buyers, one CIS-based BPI producer has managed to achieve higher prices in fresh bookings.
Accordingly, SteelOrbis has learned of two bookings done by a Russia-based BPI mill at the end of last week. One cargo of 55,000 mt of BPI for February shipment changed hands at $405/mt CFR, destined for a Chinese end-user, while another cargo of 15,000 mt was booked at the same price to Taiwan. “As of now, it is really a good price, but this whole situation already suggests a bubble,” an international trader commented, expressing doubts that prices would continue to be maintained at high levels.
As SteelOrbis reported earlier, the most recent deal was done for ex-Russia BPI to China at $395/mt CFR at the end of October. Meanwhile, most suppliers have not returned to the market yet, having been closely watching the US elections during the past week and waiting to see the further development of the market.
Taking into account the abovementioned deals, SteelOrbis’ assessment for ex-CIS BPI prices has surged within the past week by about $10/mt to $365-370/mt FOB Black Sea.