Having failed to find a buyer by an initial deadline, February 13, major Indian steel company Vedanta Limited has continued to collect bids in its export tender for 20,000 mt of basic pig iron (BPI). The material is destined to be shipped on February 27-28. The supplier is reported to be targeting a price level of $495-500/mt FOB, up $15-20/mt from the levels a month ago. Given the freight rate at around $35/mt from India to the US, the CFR price for ex-India BPI may be in line with BPI offers from Brazil, but with prompter shipment. Specifically, lately Brazilian suppliers have been testing the US market with offers at $530-535/mt CFR Port of New Orleans, for May shipment. Nevertheless, there has been talk in the market about ongoing negotiations with a customer based in Southeast Asia.
Meanwhile, aggressive offerings of ex-Russia BPI have continued to exert negative pressure on the positions of Indian as well as global BPI suppliers. “Following a booking of ex-Russia HBI, they [an Indian steel mill] claim they got a BPI offer at $400/mt CFR last week. Their subsequent open sales of finished steel to Europe and the US may be not acceptable as it destroys any business ethic,” an international trader commented. However, the information about ex-Russia BPI offers at $400/mt CFR or around has yet to confirmed. According to more widespread information, ex-Russia BPI is available at $460/mt CFR, with counterbids voiced at $450/mt CFR.
In the local Indian market, BPI offers have settled at INR 43,500/mt ($525/mt) ex-works in the eastern regions and INR 41,500/mt ($501/mt) ex-woks in the western regions. “There were some correction in the market last week. However, from yesterday, we are getting some demand and prices may bounce back,” an Indian trader stated.