Remaining constrained by Western sanctions, Russian suppliers of basic pig iron (BPI) have continued to take any opportunity to secure orders. Meanwhile, potential customers have continued to push prices down further, even though ex-Russia BPI offers have remained far below the market levels. Some customers have continued to voice their price ideas for ex-Russia material. In particular, this week, a major Indian steel mill has claimed it received an offer for ex-Russia BPI at $400/mt CFR. Amid the absence of any confirmation from the seller's side, this information is just considered to be the price desired by the mill. The producer based in Ukraine’s Donbass region, where BPI has usually been among the cheapest lately, is now in the market with offers at $420/mt FOB compared to the previous levels at $400-410/mt FOB. Meanwhile, more widespread ex-Russia BPI offers in India have been heard at $460/mt CFR, though even these levels have hardly attracted any attention from Indian customers, who would hardly consider any prices higher than $450/mt CFR. “If the Russians lowered their prices to $450/mt CFR, it would not be of much consequence. No Indian will book a vessel from Russia at this price. There are too many risks,” a representative of a major Indian mill stated.
Likewise, in China Russian BPI suppliers have been seeking to get $500/mt CFR, while a deal has been heard at $450/mt CFR. Apart from that, this week Chinese traders have been actively searching for a buyer to divert an ex-Russia cargo. According to a reliable source, their price idea has been $445-450/mt CFR, regardless of the destination.
Meanwhile, according to a few reliable sources, ex-Russia BPI cargoes have been booked in Taiwan at $460-470/mt CFR.