Global basic pig iron (BPI) trading has remained mostly muted this week, with most market insiders becoming increasingly bearish towards the levels in the coming transactions. “Market trends have moved down further, with sentiments having cooled considerably. Downstream demand is missing or lackluster at least. The recent upward momentum turns out to have been fueled by limited availability and not at all demand-driven,” an international trader stated. “Only China can give a boost. However, the situation in China looks bleak even into the second quarter,” another trader commented with regard to the future outlook.
The latest ex-Brazil BPI offers, for June shipment, at $550-560/my FOB have failed to attract interest among buyers. “All are very quiet. It seems that the further increase from the Brazilians is not working,” a market source noted.
A cargo of 5,000 mt of ex-Donbass BPI has been booked to Turkey at $430/mt FOB this week, for shipment in late April, while earlier suppliers were voicing levels up to $460/mt FOB. Some market players expect to see deals at $420-425/mt FOB levels in the next round of negotiations.