After having dipped slightly from late January to early February, US import pig iron prices are expected to move up following the rise in Turkish import scrap prices.
According to sources close to SteelOrbis, offer prices for pig iron from the southern region of Brazil are increasing and CIS region prices are expected to also increase. SteelOrbis has been informed of a recent deal for $290/mt FOB southern Brazilian port to a US customer most likely for April delivery. In CFR terms, this price translates to approximately $330/mt CFR New Orleans. Offers from the southern region are reported up $25/mt from two weeks ago at $290-295/mt FOB while export prices from the northern region continue steady at $300-310/mt FOB northern Brazilian port.
On January 30, SteelOrbis reported offer prices from the northern region at $300-310/mt FOB Brazil (plus $10-15/mt freight) and $265-275/mt FOB Brazil (plus $35-38/mt freight) from the southern region.
According to a source, “While northern region offers are expected to increase to $310-315/mt in correlation with the new southern deal and their lower freight, I noticed that we are receiving fewer offers. Given the weak demand from the US, Brazilian dealers are not sending frequent updated offers as we are not the largest importers of Brazilian pig iron anymore.” For example, Brazil exported 111,414 mt of pig iron in January 2017 and Taiwan was its largest importer, with 36,430 mt up from 10,530 mt in January 2016.
On Feb 2, SteelOrbis reported basic steelmaking pig iron prices from the CIS region at $285-300/mt FOB Black Sea (Ukraine) and $285-300/mt FOB Baltic Sea (Russia). Nodular and foundry grades (low-manganese) pig iron from the CIS region were reported at $330-350/mt FOB Black Sea (Ukraine). According to sources, the CIS region has been quiet the week ended February 10, but offers are expected to increase given the higher Turkish scrap prices.