A few deals for ex-Russia BPI (basic pig iron) have been signed over the past week to the Middle Eastern markets, and the sellers had to cut prices to attract customers since there are limited options for where to sell in the near future, though some sources have pointed out that Russian sellers have also restarted negotiations with European buyers for pig iron that will be delivered and customs cleared after January 1, 2025.
A contract for a relatively small volume of around 10,000 mt of low-manganese Russian pig iron has been heard at $390/mt CFR, though some market sources claimed the final price was even at least $5/mt lower. The levels of $385-390/mt CFR translate to $365-370/mt FOB on FOB Black Sea basis. “I would say this is a low price as this quality can be used by foundries, and the gap of $20-25/mt with scrap [HMS 80:20] is very small,” a source said.
Moreover, another deal for around 30,000 mt of Russian pig iron from the sanctioned mill is heard to have been done to the Middle East at $390/mt CFR. This price is equivalent to around $355/mt on FOB Black Sea basis, but at the moment this is the lowest level seen in the market and other mills are assessing the market at not below $370/mt FOB.
“Negotiations for Europe have resumed as mills prepare for the next quota [that will be opened from January 1],” a trading source said. The main buyers are still indicating their price idea at $400/mt CFR, saying that they are receiving offers from alternative sellers like Asia, Indonesia in particular. But it seems that importers still have problems finding a firm offer for a sizable volume of a good quality BPI at below $430/mt CFR.
The SteelOrbis reference price for ex-Russia BPI has settled at $355-380/mt FOB, with a midpoint at $367.5/mt FOB Black Sea, down by $15/mt over the past week.