Prices for basic pig iron (BPI) in most major markets have failed to improve much this week and trading has slowed as buyers have been reluctant to accept sellers’ higher targets.
In the benchmark US import BPI market, no new deals have been reported this week with most Brazilian suppliers targeting $420-425/mt FOB for higher phosphorus content pig iron and up to $430/mt FOB for lower phosphorus. The last deal for Ph 0.15 percent was done at $407/mt FOB, while for Ph 0.10 percent material the last deal was done at around $420/mt FOB, as SteelOrbis reported over the past two weeks. “We are still looking for increases. Let’s see how the US scrap market will settle,” a Brazilian supplier said. As a result of higher offers from Brazil, the SteelOrbis reference price for import BPI in the US has increased to $435-455/mt CFR, versus the previous $435-445/mt CFR. “Brazilians are aiming higher since they are betting on the US scrap market recovering. Since there was just a sideways movement for some grades though, and with the looming strike of Automotive Unions exerting pressure on the steel market, all buyers remain on the fences and do not want to commit to any new purchases,” an international trader said.
In the Black Sea export BPI market, trading has also been slow. Offers from the Donbass region have been absent and are “unlikely to return soon,” a trader said. Offers from a few Russian suppliers are still reported at high levels of $360-400/mt FOB, with the higher end of the range assessed by market sources as being out of the real market picture. The tradable level stands at $350-355/mt FOB Black Sea at the highest. The Italian market is still silent and the workable price has remained at the level of $380/mt CFR, translating to $350/mt FOB Black Sea or just slightly below. “It seems the market is at a standstill at the moment. I guess we have to wait. Soon everybody will be back from the holiday,” a European trader said. In Turkey, a few offers at $355-360/mt FOB Black Sea have not resulted in deals either.
Demand from Asian buyers, seen at an increased level over the past two weeks, has slowed down. Negotiations for import BPI to India have been heard at $400-410/mt CFR, but no new deals have been reported this week, after sales for over 100,000 mt of ex-Black Sea pig iron at $346-350/mt FOB.
A relatively high price level has been reported in a deal for 25,000 mt of ex-Malaysia BPI to Bangladesh at $440/mt CFR. This price level has not been assessed as tradable in other Asian countries.
The SteelOrbis reference price for ex-Black Sea BPI has settled at $345-355/mt FOB versus $335-350/mt FOB last week.
