The major basic pig iron (BPI) markets have posted minimal changes in terms of prices and activity over the past week due to holidays and stable sentiments. However, there has been a lot of rumors about offers and sales of pig iron from Asia, to India, Vietnam, Malaysia and Indonesia. Given the pressure from the falling Chinese market in the global billet and finished steel markets, other Asian suppliers have been trying to export raw materials such as pig iron.
In the benchmark BPI market - the US - overall market activity has been assessed by market sources as slow and the tradable level at $465-470/mt CFR, versus $465-475/mt CFR last week. Nevertheless, there have been reports that ex-Vietnam and ex-India BPI has been traded to this destination. The CFR prices have not been confirmed by the time of publication, but the offer from Vietnam was at around $400/mt on FOB basis. Also, the latest deal in the local pig iron market in India has been equivalent to $415/mt. “But freight would be very high from these destinations, so at those [FOB] levels I am guessing the CFR price is at current levels,” a source from the US said.
Also, an offer from Malaysia has been confirmed at $400/mt FOB this week, proving that activity from Southeast Asia has increased.
There have been unconfirmed reports of an Asian origin sale at as low as $430/mt CFR, but this has been denied by a number of sources, so it has not been included in the reference price before any official confirmation.
Brazilian suppliers have remained inactive after the last sales to the US and the reference price has been at $435-440/mt FOB.
Apart from the US, another deal for 30,000 mt of Asian BPI - from Indonesia - is heard to have been done at $380/mt FOB to India. “While the Russians are waiting for Europe to come back and are trying to maintain very high prices, Asian sellers have entered the market,” a trader commented.
The SteelOrbis reference price for ex-Russia BPI is down $10/mt on the lower end to $380-400/mt FOB as sellers have been insisting on $410/mt FOB or above in official offers, while bids have fallen to $370-380/mt FOB at best. “After the drop in scrap in Turkey, it will be harder to maintain pig iron prices,” a seller said.