There is not any significant improvement to be observed in the US
pig iron market in recent weeks. US
pig iron demand remains weak despite the limited global supplies.
Pig iron from
Brazil, the dominant supplier of this material to the US, is still offered at about $270 /mt FOB
Brazil, though supplies have tightened due to the prolonged shutdown of many
pig iron mills. Suppliers had been trying to push the price up to $280 /mt FOB in recent weeks; however, this price level was not accepted by the market.
Nevertheless, despite the weak demand for
pig iron, with very little prime grade
scrap supply in the market, some market insiders believe that the US mills may turn to
pig iron to meet their raw material needs once the steel market recovers, creating a shortage of
pig iron. This will not happen, however, until steel demand significantly improves, which is unlikely to occur for at least several months.
The latest statistics show that total amount of
pig iron imported into the US in the first quarter of 2009 was 864,503 mt, reflecting an increase of 50,209 mt when compared to last year’s figure in the corresponding period. However, since January 2009, import quantities have been declining and this trend is expected continue until
steelmaking activity starts to rise again. The top
pig iron import sources for the US during the first quarter were:
Brazil, at 487,754 mt;
Russia, at 219,777 mt;
Ukraine, at 59,727 mt; South
Africa, at 53,198 mt; and
Sweden, 43,016 mt. The US also imported some tonnage of
pig iron from
Canada in Q1.