According to sources close to SteelOrbis, US domestic pig iron prices have quickly increased, with the price for basic steelmaking pig iron jumping $27.6/mt ($25/nt) in the past week alone. Basic pig iron prices are now at $397/mt ($360/nt) FOB Chicago warehouse while nodular and foundry pig iron grade prices are approximately $463/mt ($420/nt) FOB Chicago warehouse.
Sources tell SteelOrbis the market has “come a long way” from basic pig iron prices at $264-298/mt ($240-270/nt) FOB Chicago warehouse and nodular pig iron at $358-380/mt ($325-345/nt) FOB Chicago warehouse in late October, for example, even though coking coal prices exceeded $250/mt at the time. Another source noted that prices were relatively stable with small upward fluctuations through the end of 2016 primarily due to limited demand in the US domestic market.
Despite the erosion of coking coal prices to $160-165/mt CFR China, the increased demand for pig iron in the US domestic market has moved prices up significantly so far in 2017.