Import prices to the US for basic pig iron generally continue on an upward ascent, driven by the recent raw materials rally that has seen coking coal and scrap prices surge globally.
An additional deal for basic steelmaking pig iron from Carajas, Brazil has been rumored to have been priced to a US buyer at $290-295/mt FOB Northern Brazilian port. This transaction widened offers for steelmaking pig iron by $10/mt to $275-295/mt FOB Brazil from $275-285/mt FOB Brazil last week. This pricing translates to approximately $290-310/mt CFR New Orleans. According to a source close to SteelOrbis, the sentiment that coking coal prices are likely to decline, even if slightly, through the remainder of 2016, has refrained some Brazilian sellers from increasing prices immediately and some stability is expected over the next several weeks. Additionally, due to the production processes in Brazil, Brazilian producers have more price flexibility than CIS producers, as they are less dependent on coking coal as an input and, therefore, less affected by the latest coking coal spikes.
CIS origin basic steelmaking pig iron has moved up an additional $5/mt from last week and is being heard at $280-290/mt FOB Black Sea for December delivery. Offers for January delivery are being heard at $285-300/mt FOB Black Sea.