The global basic pig iron (BPI) market has continued to lack direction as the number of spot deals in the segment has dwindled to almost nothing in recent weeks. While customers are opting to wait for the market to gain clarity before committing to material with long lead times, global BPI producers are not in a hurry to lower prices, citing a limited allocation of material. “The market is at a standstill. Buyers are not buying, though there are plenty of offers around, i.e. lots of material available in fact, including cargoes which were destined to be shipped to China,” a Europe-based trader commented. “The sentiments seemed to have cooled further, with the market getting very quiet lately,” another Europe-based trader echoed.
Despite such developments, global BPI suppliers have maintained their bullish stance in offerings. In particular, Brazil-based BPI suppliers are still reluctant to sell material below $500-510/mt FOB. “We are not in a hurry, as we have in hand only material for February shipments,” a Brazil-based BPI seller stated.
The assessment for ex-CIS BPI has remained unchanged, at $530-540/mt FOB Black Sea, due to the absence of any fresh transactions.