After rising along with the international market the last few weeks, pig iron import offers from the Ukraine/CIS increased again this week while import offers from Brazil were generally unchanged.
Ukraine (high manganese) steelmaking basic pig iron is being heard offered to US traders at $270-280/mt FOB Black Sea for November production which is $10/mt higher than offers last week.
From Brazil, most basic pig iron offers have remained stable since moving up $20/mt two weeks ago at $265-275/mt FOB Brazil port Northern region and $260-270/mt FOB Brazil port Southern Region. These offers translate to $270-290/mt CFR New Orleans.
Yet, a source close to SteelOrbis commented, “We have heard basic numbers in Brazil as low as $230-240/mt FOB Brazilian port but market appears flat with little activity. Remember that Brazilian producers are not as tied to coking coal due to what they use for charcoal. However, as Russia and Ukraine increase their prices, Brazilians will continue pushing for higher numbers, too.”
Another source noted, “The lower deals ($230-240/mt ex-Brazil) may be taken by some of the integrated mills if scrap continues moving up, but just not the best timing for mass import by distributors given the market uncertainty and limited demand by steel mills in the US.”