Having continued to face serious challenges doing business, Russian basic pig iron (BPI) suppliers have continued to search for buyers ready to accept all potential sanctions-related risks. Accordingly, this week Russian BPI suppliers have been conducting active negotiations with Indian customers, which is quite extraordinary as India ranked fourth place among global pig iron exporters in 2021. Moreover, some negotiations are heard to have been successfully finalized. One cargo of BPI produced by Russia's Evraz is reported to have been sold to India at $490/mt CFR, though the information has not been confirmed by the time of publication. The material with the end of August laycan is destined to be shipped from the Russian Far Eastern port of Nakhodka. According to market sources, it has been quite easy to get material of Russian origin at $460-470/mt CFR Nhava Sheva. “Although a price at $470/mt CFR India is lower than local prices, for Russians it is much more attractive compared to the levels Turkish customers were looking at recently. For instance, the latest bids have been voiced at $400/mt CFR Turkey,” a European trader stated. Meanwhile, ex-Russia BPI offers to Turkey have been heard this week at $460-465/mt CFR, for September shipment.
Furthermore, an ex-Malaysia BPI cargo for 20,000 mt is reported to have been booked to India this week at $458/mt FOB, which translates to around $495-500/mt CFR, taking into account the current freight rate and all transaction-related expenses.
It is noteworthy that five percent import duty and a ten percent social welfare surcharge apply on non-alloy pig iron imports into India.
Meanwhile, in the domestic market, local BPI prices in India have been adjusted downwards to about INR 46,000/mt ($580/mt) ex-works this week compared to INR 47,000-47,500/mt ($591-598/mt) ex-works in late July. “Demand in the market has been weak recently due to heavy rains. there is not much trading,” an Indian trader commented regarding the current situation in the domestic market in India.
$1 = INR 79.48