Amid unprecedented economic sanctions due to Russia’s invasion of Ukraine, Russian basic pig iron (BPI) producers have remained highly active in offerings to Turkey, which is almost the only one market buying significant volumes from Russia now. Aiming to secure orders whenever there is a demand, the Russian suppliers have remained highly flexible. While last week they were looking to get $500/mt CFR, this week most of them have been ready to accept prices below that level.
In particular, Russian BPI producer NLMK is said to have recently sold a 10,000 mt cargo to Turkey at $487/mt CFR, for prompt shipment. “It is crazy. But now every Russian says they are reducing their capacities. Overall, the production reduction should be 60 percent, given the challenges they have faced,” a major international trader commented. Meanwhile, BPI offers for BPI produced by Donetsk Metallurgical Plant, which is located on territory temporarily occupied by Russia, have been heard at $480/mt CFR this week, down $20/mt since the end of the previous week. According to reliable sources, the plant will halt production in June.