With the developments seen in the global steel and raw material markets in recent weeks, both suppliers and buyers of basic pig iron (BPI) have become more cautious in trading as well as in voicing offers and bids, in particular. The pessimism in the market is chiefly China-led on the back of fears of its further slowdown. “There are no specific enquiries to talk of today. Ex-CIS level is not found yet given there is no trading,” a Europe-based trader commented with regard to the current situation. “Nothing is actually working when imports to China is concerned,” a Singapore-based trader echoed the sentiments. “I am rather bearish in general, with Chinese steel demand fading and prices for semis, finished steel, iron ore and coke further pointing south. Last two years have been extraordinary in almost every respect, but remembering back in November 2019, global economies were rather down before Covid and I am afraid we may soon reach a turning point, arriving into the new normal again, and start where we ended before Covid disruptions. Mills are still trying to justify a firm market and holding back offers, but I think all of us know it is purely a wishful thinking these days,” a key trader in Europe stated.
No trading has been heard in the key markets lately, with the latest deals done to the US for ex-CIS and ex-Brazil BPI at $550-580/mt CFR Port of New Orleans at the beginning of November. Currently, while some suppliers estimate the workable levels in trading to the US at $570/mt CFR, other sellers prefer not to voice any indications and to closely watch the developments in the market. In their actions they appeal, that they are not in a hurry to sell, being to a large extent sold out until January 2022.
On balance, due to the absence of any transactions, the SteelOrbis reference for ex-CIS BPI has remained at $530-545/mt FOB Black Sea, while the indication for ex-Brazil BPI is at $500/mt FOB.
Meanwhile, India-based BPI suppliers are said to be out of interest to export any material due to the strong domestic market. Specifically, according to sources, locally BPI is traded at $550/mt levels, while the latest export deals have been at $512-517/mt FOB, done to Turkey at the beginning of November.