Buying activity in the global basic pig iron (BPI) market has remained severely constrained by the strong divergence of interests between key producers and their customers. The availability of lower-priced BPI offers from India-based suppliers and, concurrently, the muted demand from the US has continued to prevent international traders from concluding new bookings. “I would have been waiting for $580/mt FOB Black Sea. Taking into account the most recent developments in the steel and raw material markets, the workable level is hardly above this level,” a Europe-based trader stated.
However, taking into account the absence of any transactions fixed during the given period, the SteelOrbis reference price for ex-CIS BPI has remained unchanged compared to the previous week, at $605-610/mt FOB Black Sea. According to market insiders, CIS-based suppliers have been seeking to sell BPI to Turkey at $635-640/mt CFR, with no takers reported by the time of publication.
Brazil-based BPI suppliers, in their turn, have continued to be reluctant to conclude deals at prices lower than $620/mt FOB.
Meanwhile, India-based BPI suppliers have remained quite active. SteelOrbis has learned of a fresh tender for 30,000 mt of ex-India BPI at $511/mt FOB, reportedly destined to be shipped to Taiwan. One more tender for ex-India BPI is said to have been closed at $595/mt CFR to China. Small lots for 500-1,000 mt of ex-India BPI have been traded to China at $600/mt CFR, according to market insiders.