Many buyers in the US have seen an increase in pig iron offers from the CIS and Brazil in the last week due to the increase in coking coal and scrap prices.
Domestic pricing, though, shows a struggling demand scenario. Spot basic pig iron sales FOB Chicago warehouse are being heard at $264-298/mt ($240-270/nt) while nodular pig iron pricing remains flat at $358-380/mt ($325-345/nt) FOB Chicago warehouse. Prices have dropped $34/mt on basic pig iron and $33/mt on nodular pig iron since mid-September.
According to a source close to SteelOrbis, “We see these Midwest pig iron prices remaining relatively flat through year end despite the coking coal prices now exceeding $250/mt. The bigger issue we face is the lack of demand by steel mills.” Another source noted, “Yes, scrap prices up is good news for basic pig to trade on the higher end of the range, but demand by steel mills also needs to increase for the US spot pig iron market to move up.”