The recent ex-Ukraine basic pig iron (BPI) booking to Brazil, which was very unusual, has as expected given rise to more enthusiasm among global suppliers. Subsequently, CIS-based suppliers pushed BPI offers up to $395-400/mt FOB Black Sea compared to the previously voiced $370-380/mt FOB Black Sea, while ex-Brazil BPI prices touched $405-410/mt FOB, versus $395/mt FOB fixed in the last deal to Mexico. However, a successful sale of ex-CIS BPI to China at a higher price which has been disclosed to the market at the end of the current week, caused all market insiders to be highly cautious. Some of them have decided to withdraw offers at least until next week, aiming to gain a clearer picture of the further development of the market. Generally, prices are expected to move up further.
Accordingly, SteelOrbis has learned of a recent ex-Russia BPI booking to China at $422/mt CFR, for February shipment. The FOB price is estimated to be about $391-392/mt FOB, with freight being assessed at $30-31/mt. “The price is a really good one, as during this week bids in China have hardly been voiced at $410-415/mt CFR,” a CIS-based producer stated. “It will be not a surprise for me to see $400/mt FOB Black Sea in the next sale, as they [Russia-based mill] have already started to test high waters at $420/mt FOB,” an international trader commented.
During the current week, ex-CIS BPI offers to Italy have been voiced at $415-430/mt CFR Marghera: however, by the end of week, after the abovementioned booking, most traders expressed concerns over the validity of these offers.