This week, global basic pig iron (BPI) customers have continued to abstain from bookings, preferring to evaluate whether prices have hit the bottom or not. “This week is entirely quiet. We are all awaiting US scrap settlements,” a major international trader stated. “I do not think any real transactions are happening right now. Next week might be crucial,” another global trader said. “The market is completely frozen. The Brazilians are betting (hoping) US scrap will settle sideways at least and hence are offering $500/mt CFR Port of New Orleans. However, the reality is somewhere else I am afraid,” a European trader stated commenting on the current situation. Nevertheless, SteelOrbis believes that some trade may happen in the coming week, as, according to a few sources, this week Brazilian suppliers have been quite active in searching for buyers.
By the end of the current week, information about a re-exported BPI cargo from China to India has leaked to the market. Accordingly, 25,000 mt of ex-Russia BPI was booked by an Indian steelmaker at $472/mt CFR, for shipment at the end of September, with the FOB price being mentioned in offer at $450/mt. “They [the Indian mill] have huge orders for ductile iron pipes, and so are interested in pig iron, especially at such attractive prices,” an Indian trader stated. Meanwhile, in the local market in India BPI prices have decreased by INR 2,000/mt ($25/mt) during the week to INR 46,500/mt ($583/mt) ex-works.
It is noteworthy that five percent import duty and a ten percent social welfare surcharge apply on non-alloy pig iron imports into India.