Basic pig iron (BPI) suppliers from Russia have been targeting higher prices this week, seeing the uptrend in the scrap segment.
The leading market for Russian BPI exporters has remained Turkey. A deal for high quality low-manganese pig iron has been heard at $400/mt FOB, while another producer also sold high quality material a week ago, at $390/mt FOB. At the same time, targets for high-manganese basic pig iron have been at $370/mt FOB, but no deals have been reported, as the price is equivalent to $390/mt on CFR Turkey basis, and it has been assessed as high for steel mills. “There is a lot of offer volumes now in the market [after maintenances at some Russian mills], so yes, sellers’ targets are higher, but the price can go up more than $-10/mt,” a market source said.
This week, buyers’ price ideas for large volumes of pig iron have been at $370/mt CFR at the highest, translating to $350/mt FOB Black Sea.
The SteelOrbis reference price for ex-Russia BPI has settled at $320-370/mt FOB, with the midpoint at $345/mt FOB, increasing by $10/mt on average over the past week.
In Europe, offers for ex-Ukraine pig iron have been heard at $460/mt CFR. “They increased offers, as their prices are based on the level in the US import market, so this level is workable for sellers, but not for buyers,” a trader said. Also, ex-India BPI can be sold at $455/mt CFR, sources have said. Buyers in negotiations still see the market at $430/mt CFR, while they are waiting for a clearer market picture. Russia’s pig iron quota in the EU was exhausted in early March.