This week, business activity in the Turkish basic pig iron (BPI) market has been at relatively high levels, with most buyers deciding to restock due to the continuing uptrend in the scrap market and amid upbeat sentiments in other segments. Global BPI suppliers, in their turn, have sought to take full advantage of the current developments, with some sellers increasing their offers, while other have opted not to give any discounts during negotiations. Having remained short on customers due to Western sanctions, BPI sellers from Russia and the occupied Donbass region in Ukraine have remained highly active in the Turkish market, where buyers, with unique exceptions, pursue business with sanctioned mills. Specifically, this week most offers from Russia and the Donbass region have been voiced at $400-415/mt CFR, compared to $370-400/mt CFR valid last week, though, according to some sources, the latter levels are still believed to be acceptable for some producers. “Today, scrap and pig iron prices are going head to head. These are strange times indeed,” a Turkish trader stated. Apart from low ex-Russia offers, ex-Iran BPI offers have been heard at $370/mt CFR. “Given the trend in all markets, BPI prices are underperforming. Hence, I believe, they [BPI prices] will move up in the coming weeks,” another trader stated.
Meanwhile, this week a 10,000 mt cargo of ex-Russia BPI, produced by a non-sanctioned mill, has been booked at $410/mt CFR. Since the beginning of the current week, a major Turkish steelmaker is reported to have been in negotiations with first-tier global BPI suppliers. Having failed to get its desired price from a Brazilian BPI supplier, the steelmaker is reported to have booked material from Ukraine. Specifically, a 30,000 mt cargo of ex-Ukraine BPI, for prompt shipment, has changed hands at $460/mt CFR, though at the beginning of the week information about booking of 35,000 mt of ex-Brazil BPI, for January shipment, at below $450/mt CFR has been actively circulating in the market. With this information denied by Brazilian suppliers, SteelOrbis believes that it was rather a bid from a customer than an acceptable price for the sellers. In particular, the lowest ex-Brazil BPI price was fixed at $415/mt FOB to the US, which would make the CFR price for Turkey at $450/mt CFR at the lowest, with the freight rate being estimated at $35/mt. Meanwhile, another Brazilian BPI seller is said to be seeking $450-455/mt FOB, after the latest sale at $478/mt CFR Port of New Orleans at the beginning of the current week.