Though demand for basic pig iron (BPI) in some regions exists, trading activity in the global market has been to some extent constrained by the divergence between offers and bids. Accordingly, CIS-based suppliers as well as Brazilian sellers have still been insisting on high prices, but have failed to find a response from any big traditional buyer. “The market seems to be taking a nap, but there is no reason to be concerned, in my view. The fundamentals remain quite strong,” an international trader commented with regard to the current situation. “There is demand from China nowadays (though I believe it is temporary), but customers here have searched for alternative sources with lower prices,” an Asia-based trader stated. SteelOrbis has heard of a recent 40,000 mt ex-India BPI booking done by a trader with a position, supposedly to China, at $540/mt CFR. “Even if CIS or Brazil-based suppliers drop their prices, freights are a big issue. Until May, I do not see any relaxation in the freight market,” a trader said One Russia-based supplier with access to Far Eastern ports may be given priority. The producer has been heard in the Chinese market at $560/mt CFR.
Meanwhile, SteelOrbis has heard of a few lots of 5,000 mt each sold by a Russia-based mill to Turkey at an average price of $557/mt FOB Black Sea, for May production. Ex-Ukraine BPI offers to Turkey and Italy have been voiced at $570/mt CFR, but without confirmation from the seller’s side by the time of publication.
Ex-Brazil BPI offers have been voiced at $530/mt FOB southern ports, versus $520/mt FOB fixed in the most recent bookings done at the beginning of March.