During the past week, ex-CIS pig iron offers have started to move up and are currently at $380-410/mt FOB, indicating a $20/mt increase week on week.
While demand for ex-CIS pig iron in the US has accelerated over the past week, CIS-based suppliers’ regular pig iron sales to the European market have declined. CIS-based producers have focused on the US market due to better demand as they have increased their offer levels to this destination. Meanwhile, market sources report that Russian suppliers have concluded deals to the US for two cargos both consisting of 50,000 mt of pig iron at $415/mt CFR.
Demand in CIS-based pig iron producers’ main export markets such as Italy and Turkey has declined significantly. As a matter of fact, demand for ex-CIS pig iron in Turkey has almost become stagnant in parallel with the halt seen in import scrap purchases in Turkey. Meanwhile, ex-CIS pig iron offers to Italy are currently at $415-435/mt CFR Porto Marghera, though actual sales to Italy are observed at $390-395/mt CFR.
CIS-based pig iron exporters are unwilling to reduce their export prices as demand in the US for pig iron from the CIS region is expected to remain strong in the coming weeks.