The recent ex-Brazil basic pig iron (BPI) bookings done a week ago to the US market have made all market participants in the global BPI market monitor the positions of CIS-based suppliers more closely. Considering a “fragile global scrap market” and mainly anticipating a further drop in BPI prices in the background, most market insiders have looked forward to active trading from the CIS region this week. However, CIS-based BPI suppliers have largely continued to maintain a wait-and-see stance, preferring to test their offers on a case-by-case basis.
Accordingly, following active negotiations with a customer from the GCC region last week, a Ukraine-based BPI producer finally closed a deal for 35,000 mt of BPI at $535/mt CFR, for March shipment, with the FOB price being estimated at $490-495/mt FOB Black Sea, having beaten the offer from Russia-based mill at $520/mt FOB Black Sea. The same Ukraine-based producer offered BPI to its European customers at $535/mt CFR Marghera, market players report. The buyers, in their turn, are said to be postponing their feedback, exerting pressure in order to get bigger discounts.
Although most market insiders continue to expect global BPI prices to move down further, far from current levels, there are a few traders who hold quite the opposite view. “I think it is just a question of time before Italy books at this price. Japanese scrap traders have started to hold back their offers and it seems that mills are pushing hard to sustain the elevated price levels,” one Germany-based trader stated.
Taking into account the current developments, SteelOrbis’ assessment for ex-CIS BPI prices has settled at $490-495/mt FOB Black Sea this week, down $10-25/mt from offers a week ago.