On December 21, SteelOrbis reported offers from Brazil for basic steelmaking pig iron steady at $320-330/mt CFR New Orleans and $305-315/mt FOB Brazilian port. CIS basic pig iron offers were reported at $300-320/mt FOB Black Sea and $325-340/mt CFR East coast port.
For the week ended December 30, Basic steelmaking pig iron (high manganese) from CIS is being heard at $310-315/mt FOB Black Sea and from Brazil at $310-320/mt FOB Brazilian port. These numbers reflect an increase of $10/mt on the lower end of the range and down $5/mt on the upper end for CIS offers and an increase of $5/mt for Brazilian offers. The slight increase from the bottom of the ranges according to a market source could be as a result of the increase in scrap prices expected in January.
NMLK (Russia’s largest steelmaker) has announced cuts to pig iron exports beginning January 2017 due to its own growing need for raw materials. According to a market source, “They may have an effect on CIS supply at least in the short term.”
US demand for imported pig iron is presently weak. A source noted that additional positive market information in early 2017 could increase pig iron imports.