Having announced solid export offers for basic pig iron (BPI) at $350-355/mt CFR China, CIS-based suppliers did not receive any support for two consecutive weeks. Most bids from Chinese customers have not exceeded $340/mt CFR. However, by the end of the current week, SteelOrbis has been informed of a cargo sales done by a Russian producer at $347/mt CFR China. The material is for September shipment. With increased freight rate, FOB price is estimated at $313-314/mt. The initial offers from the supplier have been voiced to China at $355/mt CFR.
There are discussions in the market about ex-CIS BPI booking to the US at $330/mt CFR, but US-based sources deny such information, considering this level as absolutely not workable for the region, taking into account scrap market development and still adverse utilization rates of steel mills. Recently, one of the US mills has booked BPI from the local suppliers at $325/mt CPT, SteelOrbis has learned.
Ukraine’s Metinvest is said to keep offering to Italy at $335/mt CFR Italy, with no business confirmed.
In view of current offers and done business this week, SteelOrbis’ assessment for ex-CIS BPI prices has moved down by $7-10/mt over the week, to $313-320/mt FOB Black Sea.