Russian basic pig iron (BPI) exporters have been targeting higher prices this week, seeing the strong performance in the scrap segment. But following rather active previous sales, the market has been evaluating its future steps and buyers, mainly in Turkey, have been unwilling to accept higher prices.
Most deals done for ex-Russia BPI were signed at $355-360/mt FOB, while some market sources reported the highest contract price at $360-365/mt FOB. After rather active selling last week and early this week, major Russian mills have sold out May shipments. The main sales destination has been Turkey, and a small volume was under negotiation in Egypt. Other markets, like the GCC, are stalled as “they don’t need pig iron, they are actively purchasing billets,” a source said.
For Turkey, CFR prices in the latest deals have been assessed by a number of sources at $385-390/mt CFR with the highest level just slightly above $390/mt CFR. This is up from last week’s contracts heard at $380/mt CFR. But since the freight rates are high, the increase in CFR prices has been more visible. Only for large lots of 50,000 mt, the freight from Novorossiysk has been $25/mt, while for lower volumes the rate would be $30/mt or higher.
“Now, all producers will target $370-380/mt FOB,” a selling source said, though this is equivalent to $400/mt CFR Turkey or higher, which is not a workable level for most customers yet.
Some offers for Libyan HBI have been reported at as high as $390/mt CFR Turkey, versus previous levels of $382-385/mt CFR, but demand has also been limited.
The SteelOrbis reference price for ex-Russia BPI has settled at $355-370/mt FOB Black Sea with the midpoint at $362.5/mt FOB, increasing by $5/mt over the past week. It is worth mentioning that, compared to mid-March, prices have added $21.5/mt.
