Given the temporary withdrawal of offers from Brazilian suppliers due to heavy rainfall in Brazil and the consequent disruption of iron ore mining and pig iron production, other major global basic pig iron (BPI) producers have become even more cautious in offerings.
Accordingly, one first-tier Ukraine-based BPI producer is said to be remaining out of the market. “Until now, we have abstained from giving firm offers, thereby slowing down the downtrend in the segment. Now, taking into account Brazil and a certain revival of buying interest in some regions, we expect prices certainly to rebound,” an official at a mill stated. Following a sale of 10,000 mt of BPI, for shipment in January or the first half of February at $490/mt FOB Black Sea, another Ukrainian BPI producer is said to have increased its target prices to $505-510/mt FOB Black Sea by the current week. Although the destination for the material has not been specified, Turkey is considered as the most probable one, with a certain rise in demand there this week. Some market insiders have suspected cancellations of ex-Brazil BPI cargoes as being the main reason for the increase in inquiries from Turkey, though the Brazilian BPI supplier affirmed that its cargo was already shipped and that no cancellations are likely to occur. “We ask some clients to give us more time for a delivery, but we do not cancel any orders,” a major Brazilian BPI supplier stated. Given the recent developments, the CFR prices in Turkey have increased to $535/mt CFR and above.
However, a Russia-based BPI producer is said to have this week traded a 10,000 mt cargo of BPI with low manganese content at $555/mt FOB, also to Turkey. Furthermore, the supplier has been quite active in sales to South Korea. In particular, a few lots of 3,000-5,000 mt on average have been sold there at $620/mt CFR. The material is destined to be shipped from a Russian Far East Port, with freight being estimated at $28-30/mt. Previous bookings were fixed at $605/mt CFR to South Korea and $620/mt CFR Taiwan, for March shipment. Following a continuous rise in domestic and import scrap prices, South Korean customers appear to be ready to pay much higher pig iron prices in order to secure themselves feedstock.
In the meantime, Indian BPI producers have decided to leave the market for a while, preferring not to voice any export indications now but to closely evaluate market developments. However, the recent significant increase in metallurgical coke prices in India appears to have left BPI suppliers with no other option but to search for higher numbers in coming bookings if there are any.
Ex-Iran HBI is available at $370-380/mt FOB, SteelOrbis has learned.