Due to the decline in scrap pricing expected through trading this week in the Eastern US, trading in pig iron is at a stand-still. The limited trading has maintained import pricing and domestic pricing at generally the same levels as those reported last week with slight downward pressure. A source close to SteelOrbis stated, “The uncertainty in October is affecting the pig iron market. Many expect iron ore prices to get closer to $50/mt CFR China and scrap prices to decline due to expectations for continued decreased steel demand in the world markets and inventory reduction of finished goods as the end of year approaches.”
Ex-Brazil basic steelmaking pig iron offers are being heard at $235-245/mt FOB Brazil port and ex-CIS at $240-245/mt FOB Black Sea, but according to sources close to SteelOrbis, should they choose to proceed they could achieve better pricing. The latest numbers for CFR New Orleans continue to be heard at $245-255/mt for basic steelmaking grade. The international supply is abundant, but distributors are limiting imports due to the weak domestic market.