Over the past week, ex-CIS pig iron prices have increased by $10/mt to $335-340/mt FOB. According to market sources, declines in pig iron production in the CIS resulting from problems in coking coal supplies from Ukraine, the weakness of demand, and the recent rises in global scrap prices have contributed to the upward movement of ex-CIS pig iron quotations. Last week, Russian pig iron producer Tulachermet increased its prices for all grades, including a $40/mt rise for special grade pig iron, citing the rises in iron ore prices and the upward movement of steel prices at Dalian Commodity Exchange. The tightness of ex-CIS pig iron supplies is also due to the decision of some Russian steel producers to start maintenance works and since some of the producers have reserved more pig iron to be used in their steel production. Meanwhile, Russian pig iron suppliers’ inventories are also on the low side. According to market sources, CIS-based pig iron suppliers’ orders for July shipment are full and they are now receiving orders for shipment in August.
Meanwhile, the latest ex-CIS pig iron deals in the US were concluded at $354/mt CIF and, although US-based buyers’ firm bids were at $345/mt CIF, CIS-based suppliers did not accept lower prices citing the tightness of supplies.