Despite the absence of solid trading in major markets, global basic pig iron (BPI) suppliers have continued to push prices up, citing limited allocation and also increased prices for iron ore and coking coal. Nevertheless, buyers have not been in a rush to accept higher prices this week. While Chinese customers have not been active in bookings chiefly due to the approaching Lunar New Year holiday and some uncertainty with regard to subsequent developments, US buyers continue to insist on lower numbers. On balance, only occasional deals for small volumes have been signed at prices much higher than market levels. In particular, a Russia-based BPI supplier is said to have sold in total 38,000 mt of BPI, for shipment in March-April, at $570-580/mt FOB. The material is destined to be shipped from Black Sea ports, as well as from Baltic Sea ports. The producer has announced new BPI offers at $640/mt FOB, which is now considered by market insiders as being absolutely unworkable.
A Ukraine-based BPI supplier has increased its price idea to $530-540/mt FOB Black Sea, having largely traded March volumes at $490-500/mt FOB earlier. Taking into consideration the absence of bookings at new levels, prices have not been taken into assessment for ex-CIS BPI. “Market sentiment on the buyers’ side remains sluggish and rather pointing south. Pig iron suppliers are trying to push through higher prices, due to higher costs (coke and coal), logistical constraints in Brazil, and the escalating tensions between Russia and Ukraine. However, I am sure they won't find large buyers at their expected levels,” an international trader commented with regard to the current market developments.
After a leading India-based supplier of pig iron, Vedanta, failed to achieve its initial target price at $570-580/mt FOB under the scope of its export tender for 20,000 mt, the company is said to have reduced its price idea to $550/mt FOB, though the tender results remain unclear. Bids from customers in China have been voiced at $545-550/mt CFR for ex-India BPI and at $555-560/mt CFR for BPI produced by first-tier Ukrainian producers.