Over the past week, ex-CIS pig iron offers to export markets have increased by $7.5/mt on average to $330-340/mt FOB, though no deals have been concluded at the new price levels yet. In this context, ex-CIS pig iron offers to the US have increased by $10/mt on average to $360-370/mt CFR. Meanwhile, CIS-based pig iron exporters’ offers to Italy are at $370/mt CFR, but Italian buyers are seeking to conclude deals at $350-355/mt CFR. Last week, ex-CIS pig iron deals were concluded in Turkey at $345/mt CFR, though no new bookings have been heard yet.
While the increases in global scrap prices seem to have ended for now due to the slowdown in demand in the global scrap market, scrap prices in the local US market have mostly moved sideways for the February buy-cycle. As a result, CIS-based pig iron suppliers, who were eager to increase their prices in line with the rises in scrap prices during previous weeks, are expected to find it difficult to increase their prices further.