Over the past week, ex-CIS pig iron prices have increased by $5/mt on the upper end to $320-335/mt FOB. Although the downward movement of ex-CIS pig iron prices has ended, CIS-based suppliers are still finding it difficult to increase their prices to their desired levels. Since the ongoing declines in prices of scrap and other raw materials have not been reflected in finished steel prices yet, buyers are continuing to exert pressure on pig iron prices.
According to market sources, some CIS-based suppliers have increased their prices to the US by $10/mt to $360/mt CFR. However, US-based buyers’ firm bids are at $340-350/mt CFR.
Meanwhile, demand for pig iron in Italy is slack as Italian buyers have adopted a wait-and-see stance. Ex-CIS pig iron offers to Italy, which were at $350/mt CFR last week, are now at $340-350/mt CFR.