The uptrend, which has been prevalent in the global pig iron markets for a couple of weeks, has continued this week as well. As a result of the strong demand in the Russian domestic market last week, prices have increased to the range of $470-475/mt FOB Black Sea and there is currently no material in the market being offered at these prices. The new pig iron export offers for Turkey stand at around $480/mt FOB Black Sea and above the level of $500/mt C&F, whereas offers for foundry pig iron do not go below the level of $550/mt C&F. Meanwhile, Ukraine-origin pig iron is being offered at $10-15/mt lower compared to Russia-origin pig iron. SteelOrbis has heard that while prices stand at the levels in question in the CIS pig iron markets, there are producers in Turkey who have concluded exceptional bookings that are more advantageous than the abovementioned levels.
Export offers for pig iron in the Asian market are lower compared to the CIS market. The bookings concluded this week for India-origin pig iron stand at the level of $465/mt FOB India.
While the export offers for Brazilian pig iron were at around $450/mt FOB last week, an increase is expected in price levels this week due to the US's commencement of purchasing activity.
Taking into consideration the new iron ore and coke prices that will be effective as of April, with no apparent decline being expected to take place in export offers for pig iron, pig iron offers are thought likely to indicate an increase. However, the extent to which the uncertainty in the scrap markets may affect this steady rising trend is a source of some concern.