During the previous three weeks, ex-CIS pig iron supply declined significantly due to the blockade of railway lines in eastern Ukraine. Major Ukrainian pig iron producers were forced to exit the market because of the blockade which made it impossible to transport pig iron, while ex-Russia pig iron offers moved up by $25/mt due to the reduced pig iron supply. In the short term, even if pig iron supply does recover, ex-CIS pig iron offers are unlikely to soften because of rising raw material prices.
Ex-CIS pig iron offers to export markets have increased by $20/mt to $320-340/mt FOB, compared to three weeks ago.