In the absence of interest from big buyers in the US and China, CIS-based basic pig iron (BPI) producers have continued to focus on sales of small lots to distributors, generally seeking to maintain their prices at higher levels.
SteelOrbis has learned of at least two ex-Ukraine BPI lots sold to distributors in Europe, one of which has been for about 5,000-10,000 mt of BPI to Italy at $567/mt CFR Marghera, while another 20,000-25,000 mt lot was booked by a trader at $585-590/mt Rotterdam, both for May production. The disparity in CFR prices has arisen because of the difference in freight rates, with the FOB prices being estimated at more or less at the same level, at $537/mt FOB and about $540/mt FOB, respectively. Meanwhile, offers of other Ukrainian BPI producers are said to be voiced at $550/mt FOB Black Sea.
Overall, trade for ex-CIS BPI has continued to be slow, with suppliers not in a hurry to lower their prices, citing a lack of material for prompt shipment. However, according to market insiders’ estimates, CIS-based mills still have about five cargoes for May shipment, with at least one mill still having April material in hand. “They are officially offering June production to pretend scarcity,” one international trader stated. Meanwhile, one Russia-based mill has not even voiced any price levels, preferring to watch market developments closely. Another Russia-based mill has announced its target price at $570/mt FOB, with all buyers around considering this level as extremely overvalued. Last week, the third Russia-based BPI producer managed to sell a small lot to China at $550/mt CFR for May shipment from its Far-Eastern ports, though $10/mt below the target level.
On balance, taking into consideration the abovementioned developments, SteelOrbis’ assessment for ex-CIS BPI prices has remained at $537-540/mt FOB, unchanged compared to the previous week’s levels.