Ex-Russia and ex-Donbass basic pig iron (BPI) prices have hit new low in the import market in Turkey as sentiments have been extremely weak due to slow finished steel sales after the increases in VAT and corporate taxes in the country. There has been a lack of deals for BPI even though prices have been lower than for scrap, signaling buyers’ cautious attitude to book any big quantities of the raw materials.
The official offer prices for large volumes to end users in Turkey have been reported by some sources at $370-380/mt CFR. However, a number of market participants said that the real market level is at $360/mt CFR and at least one source close to the supplying mill confirmed this. The current price level is $10/mt below the level seen as workable in early July. There has been information about a deal for ex-Donbass BPI at $335/mt FOB or about $360-365/mt CFR, though this could not be confirmed by the time of publication. “Russian pig iron from OFAC/EU sanctioned producers could be available at $360/mt CFR,” a Europe-based trader said, taking into account poor demand for these materials globally, as he added. However, in general demand in Turkey has been still very weak. "All port warehouses free zones are full of pig iron, so negotiations for new parcels are slow," a Turkey-based source said.
This level translates to $330-335/mt FOB Black Sea, while the reference price for ex-Russia BPI to Europe have been at $350-360/mt FOB, as SteelOrbis reported earlier.