Ex-CIS pig iron offers decrease amid lower domestic scrap prices in US

Tuesday, 15 January 2019 13:43:52 (GMT+3)   |   Istanbul

Over the past week, ex-CIS pig iron offers to target export markets have continued their downtrend, decreasing by $20/mt to $320-330/mt FOB. The main reasons for the declines in ex-CIS pig iron quotations are the sharp decreases in domestic scrap prices in the US and increased competition in the global market since the volume of offers has increased. Since the decline in domestic scrap prices in the US for the January buy-cycle has been sharper than expected, US-based buyers have started to search for lower offer prices from pig iron suppliers. After prices in the local US scrap market decreased by $30-40/mt, US-based buyers are willing to conclude pig iron deals at $350-360/mt CFR, down $10/mt week on week. 

As both Italian buyers and CIS-based pig iron producers have returned to the market after the holidays, trading activity in the Italian pig iron market has accelerated slightly. However, ex-CIS pig iron offers to Italy are at $360-365/mt CFR, while Italian buyers’ firm bids are much lower, at $340-350/mt CFR.

Having increased their scrap bookings as of the second week of January, Turkish steel producers have not concluded any pig iron deals yet. However, Turkish mills’ desired price levels for ex-CIS pig iron are expected to be lower than the prices sought by buyers in other countries.

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