Sales of Russian basic pig iron (BPI) have been rather slow this week as major buyers from Turkey have started to show more resistance even though import scrap has added a few dollars lately.
The SteelOrbis reference price for ex-Russia BPI has remained stable at $360/mt FOB Black Sea with small-volume deals to Turkey reported as done at this level over the week. Most sellers still have June shipment. “Prices are currently at around $360-365/mt FOB. But if someone needs to sell a large volume, discounts are needed. I estimate the discounts to be $5-10/mt,” a source said.
Market sources reported that some buyers in Turkey are resisting to accept any increase and even the current levels sometimes, threatening BPI sellers that they can switch to local scrap, which is cheaper [around $360/mt, according to SteelOrbis]. “But I think there's a nuance here with availability first of all, and they still need pig iron,” a seller source said.
There have also been some sales of high-quality pig iron at around $440/mt CFR with the freight from Russian Black Sea to Turkey is assessed at $25/mt as the highest.
