Prices for basic pig iron (BPI) globally have been relatively stable this week, supported by slight increases seen in the scrap segment. However, in general all sentiments in the BPI market are still pessimistic amid very limited demand, falling prices in China, and uncertainties in Turkey due to the upcoming second round of the presidential election.
The general range of ex-Black Sea BPI prices has been at $365-395/mt FOB this week, narrowing by $5/mt from $360-400/mt FOB last week. Some activity has been seen in the European market, but most market sources said that only small volumes have been traded. In particular, one contract from a non-sanctioned Russian mill has been reported at $455/mt CFR with some sources believing it was for just 5,000-10,000 mt and the price has been assessed as high for the current market conditions. This price translates to around $400-405/mt FOB Black Sea. “I would say that now the price for Italy should be or is already at $445/mt CFR,” a market source said, adding that this deal could be a bit old or due to some special seller-buyer terms. Last week, the tradable level for Italy was at $4580/mt CFR.
Moreover, there has also been a rumour about another buyer purchasing a lot from a non-sanctioned Russian mill at $440-445/mt CFR, which translates to $390-395/mt FOB Black Sea. And though this could not be confirmed by the time of publication, market sources said that this price level is more in line with the current market conditions, indicating a slight decline week on week.
Offers for ex-Donbass pig iron have been very limited this week. “I heard that one of the two major mills [from Donbass, exporting BPI] has switched to exports of slabs and sales of plate to the local Russian market,” a trader said. Another mill in Donbass has been officially offering at $380-390/mt FOB, but indications coming to buyers have been assessed at $365-370/mt FOB, stable from last week. “The market is totally stuck. In Turkey, we have issues with dollar supply and exchange rates, and people are avoiding anything before the election, buying activity is very limited,” a Turkish trader said.
No activity has been reported in the import market in the US. The reference price for ex-Brazil BPI with the phosphorus content of 0.15 percent has remained at $475-482/mt FOB, stable from last week, with a number of sources saying that offers at around $480/mt FOB are heard, but the market is quiet after the previous three bookings and US importers are staying away mostly.