On August 25, SteelOrbis reported ex-CIS basic steelmaking pig iron offers to the US at $390-395/mt CFR which translates to approximately $380-385/mt FOB Baltic Sea.
Sources report that offers this week continue to be stable with no known deals in the offer range. Although, a source noted that “silent transactions in the $380-385/mt CFR range may be in progress given the higher scrap expectations through fourth quarter, situation in the South, and recent $380/mt CFR deals from Brazil.”
The Southern US is contending with the effects of Hurricane Harvey which flooded Houston and other cities in Eastern Texas. The tropical storm has moved eastward from Texas to Louisiana with continued rain. Several large ports in the Houston area remain closed with expectations of resuming some, and possibly most, operations in approximately a week while the Port of New Orleans remains open. The flooding is expected to affect scrap exports and imports and the net effect is still being assessed by all companies throughout the steel supply chain.
A separate source stated, “It is still early to understand the net effects. I do not see it likely that prices will drastically jump up as feedstock concerns correlate with September and early October needs while pig iron shipments may lag the rush.” Additionally, scrap availability in the South is expected to rise drastically by the end of September and into October as damaged steel goods are recycled.