In general, the effect of the exhaustion of Russia’s basic pig iron (BPI) quota in the European Union is still limited, while importers in Europe have been quiet on purchases. However, sellers have been insisting on their offers and have not been ready to give discounts.
The highest tradable level for import BPI in Europe has been reported at $435-440/mt CFR, versus $430-435/mt CFR last week. However, some large buyers are still insisting on $400/mt CFR, similar to bids last week. “Pig iron prices have increased in Europe. So, people seeking $400/mt CFR will not get anything in my opinion,” a trader in Europe said. At the same time, another European source said that the difficult situation in the finished steel market has prevented any deals being done for import pig iron. Moreover, a lot of Russian pig iron was booked, and at the moment a number of offers are available in Europe from Ukraine and Asia. In particular, an offer for ex-Ukraine pig iron has been heard at $445/mt CFR, while ex-Southeast Asia BPI may be available at $435-440/mt CFR at the lowest and for a large volume.
As for the Russian BPI market, the market has been uncertain after Russia’s quota for 2024 in the EU was exhausted last week. “The question of price is difficult nowadays. All the sellers are waiting, but the buyers target of $400/mt CFR [for Russian BPI] in Italy is correct,” a source said. This CFR price translates to $370/mt FOB Black Sea, but officially Russian mills are keeping their offers from falling below $390-400/mt FOB since the EU quota is filled and they hope to get better prices in the next round of sales.
In Turkey, the latest tradable level for import BPI has been heard at $390/mt CFR, translating to $365/mt FOB Black Sea, up by $10/mt over the past week. No new deals have been reported after the last one heard at $380/mt CFR a week ago.
The SteelOrbis reference price for ex-Russia BPI has settled at $365-400/mt FOB with the midpoint at $382/mt FOB Black Sea, up by $7.5/mt on average over the week ended on September 13.
Asian BPI suppliers have remained rather active, though the lowest price levels seen at $370-375/mt FOB from at least one exporter from Southeast Asia in late August have disappeared. A deal for 25,000 mt of ex-Malaysia pig iron has been done at $380/mt FOB with the sales destination heard to be Bangladesh and the final CFR price at around $415/mt CFR. Also, an offer from Vietnam has been heard at $400-405/mt FOB.