Over the past week, trading activity in CIS-based pig iron producers’ export markets has accelerated slightly and demand has started to increase even if at a slow pace. Accordingly, ex-CIS pig iron offers have increased slightly by $5/mt on the lower end to $385-395/mt FOB. However, there is still a significant gap between CIS-based producers’ pig iron offers and buyers’ firm bids, and so buyers are continuing to exert downward pressure on prices.
During the period in question, pig iron demand in Turkey was expected to recover as Turkish steel producers resumed their import scrap bookings and as the downwards movement of scrap prices had ended. Supporting this expectation, a Ukrainian pig iron producer concluded a deal at $400/mt CFR to the Turkish market, where demand pig iron demand had almost came to a halt. This deal indicated that pig iron demand in Turkey has once again started to accelerate.
Meanwhile, CIS-based pig iron producers’ offers to Italy are at $400-420/mt CFR, while Italian buyers’ firm bids are slightly below this range, at $385-395/mt CFR. While pig iron demand in Italy has increased slightly, Italian buyers are seeking discounts. In the US market, where the most recent deal concluded by a CIS-based pig iron producer was at $410/mt CFR in late April, ex-CIS pig iron quotations are currently at $410-420/mt CFR.