Russian basic pig iron (BPI) exporters have attempted to further increase their prices, but the uptrend has not been sustained due to the increase in volumes offered in the market. The big gap in prices from different suppliers reflects the lack of a settled trend in the market.
Interest in imported BPI in Turkey has increased slightly this week. A few market sources have reported negotiations at $320/mt FOB Black Sea, up from the previous tradable levels of $310-315/mt FOB last week. This price translates to around $340/mt CFR. There were reports that some small tonnages have been traded at this new higher level, but this information has been denied by a selling source. “Russian sellers tried to sharply raise prices to even $330/mt FOB. So, small sales at $320/mt FOB are possible, but not many. I think in a week it will become clearer whether the market will consolidate at a higher level or bounce back,” a market source commented.
At the same time, by the end of the week, there have been reports that some Russian mills have been offering at lower levels, trying to quickly push volumes and considering $305-310/mt FOB to be a normal price level in such conditions.
An offer for ex-Russia BPI has also been heard at $345/mt CFR to Southeast Asia, which translates to not above $300/mt FOB Black Sea and most probably below this. “The Far East import market has stalled: buyers there purchased so much material in the last couple of months that I think they'll be out consuming these tonnages for the next couple of months,” a source said about the trading to South Korea and Taiwan.
The SteelOrbis reference price for ex-Russia BPI stands at $305-320/mt FOB Black Sea this week, stable on average but widening from $310-315/mt FOB last week.
