Ex-CIS pig iron offers have indicated a decline over the past week, due to pressure from low buying activity, in the US market specifically. The further price trend will partly depend on the rate of China’s activity in pig iron imports.
According to market sources, most CIS-based pig iron suppliers are ready to start negotiations for exports at $280/mt FOB, down by $10-15/mt over the past week. However, levels $5/mt lower are also considered acceptable, SteelOrbis understands.
US buyers have been quiet recently with price ideas voiced at around $285-295/mt CFR, versus close to $300/mt CFR in the indicative offers. The freight cost ex-CIS is estimated at around $25/mt.
In Italy, demand is said to be limited from the steelmakers’ side. The latest offers from the CIS have been reported at $305/mt CFR ($280/mt FOB), while bids have been at $290-293/mt CFR ($265-270/mt FOB), sources say.
The Turkish market has also been quiet for import pig iron, mainly concentrating on purchasing substitutes. Offers have been heard at $295-300/mt CFR or $280/mt FOB, SteelOrbis has learned. It is worth mentioning that one of the CIS-based exporters sold a lot of low-manganese pig iron to Turkey at $310/mt FOB last week, according to the sources.
While for now the price trend outlook remains mainly negative and $270/mt FOB is considered to be achievable in deals, market players believe that a lot will depend on whether China remains active in pig iron imports. Two ex-Russia cargoes were reportedly sold to China at the end of September at the estimated level of $320/mt CFR. Today, China might not be eager to pay higher than $300/mt CFR, SteelOrbis understands.