The slight improvement in scrap import prices in Turkey, with scrap potentially reaching $400/tonne CFR, has led to increased interest among foreign buyers for Russian-origin pig iron. Market participants report that Italy has purchased around 90,000 tonnes of pig iron at $415-420/tonne CFR, with offers in Italy now rising to around $430/tonne CFR.
In Turkey, despite workable levels remaining unchanged at $400-405/tonne CFR, there is a belief that the recent scrap price increases may push workable levels higher, to $405-410/tonne CFR. An unconfirmed report mentions a deal at $405/tonne CFR Turkish Black Sea ports for 5,000-10,000 tonnes from a non-sanctioned Russian producer.
On the Russian side, one mill reported receiving bids at $390/tonne FOB Black Sea, which it considered unworkable, while another mill's offer was around $415/tonne FOB, with a typical premium of $15-20/tonne for quality. Russian mills anticipate the need for a further increase in prices by $20-25/tonne to offset Russia's export duty.
In Brazil, P10 grade pig iron was reported booked at $430/tonne FOB, and P15 quality at $440/tonne FOB, with around 30,000 and 50,000 tonnes booked respectively last week for the US market. This week, two deals were reported at $430/tonne FOB destined for the US.
Considering the recent deals in the US for Brazilian-origin material at approximately $455-465/tonne CFR New Orleans for P15, a trading source suggests that Ukrainian producers may opt to focus on nearby markets rather than supplying America.
