Over the past week, pig iron demand in the US and Europe, key markets for CIS-based pig iron suppliers, was slack due to the Easter holiday. However, trading activity has improved after the holiday, while demand has particularly increased in the US. As a result, ex-CIS pig iron offers to the export markets have increased by $5/mt week on week on the upper end to $380-405/mt FOB.
Since US steel mills have started to raise their capacity utilization rates gradually as President Donald Trump stated that he wants to increase steel production in the country, pig iron demand in the US is expected to rise further in the coming days. Market sources state that ex-CIS pig iron booking prices in the US, which were at $415-420/mt CFR last week, have increased to $425/mt in the new deals concluded this week.
Meanwhile, pig iron demand in Turkey is still weak and no offers from CIS-based suppliers to Turkey have been heard in the given period. In Italy, where pig iron demand is also slack, CIS-based pig iron suppliers are unwilling to give discounts, maintaining their offers at last week’s price range of $415-420/mt CFR.
Under these market conditions, CIS-based pig iron producers, whose order books are fairly full for May shipments, seem to be directing their sales to the US market, where demand is at decent levels and where the higher prices of ex-CIS pig iron have gained acceptance so far.