Over the past week, ex-CIS pig iron prices have increased by $5/mt on the lower end and by $10/mt on the upper end to $335-350/mt FOB. The upward movement of raw material prices, resulting from the contraction of iron ore supplies in the global market following the collapse of Vale’s iron ore tailings dam in Brazil, is expected to play a significant role in terms of the tendency of ex-CIS pig iron prices in the coming weeks. Some CIS-based pig iron suppliers, which had increased their prices to the US market to $360-370/CFR last week, are still trying to maintain their current price levels, though no ex-CIS pig iron deals have been concluded in the US market in the given period. According to market sources, last week a Russian supplier sold high manganese-content pig iron to the US at $355/mt CFR, although US-based buyers’ firm bids were under this price level. Accordingly, CIS-based pig iron suppliers are expected to make sales to the US market at their desired price levels in the coming days.
Meanwhile, Italian buyers are still adopting a wait-and-see stance and are seeking to conclude deals at price levels lower than US-based buyers’ firm bids. Just like last week, ex-CIS pig iron offers to Italy are at $370/mt CFR, while Italian buyers’ firm bids are still at $350-355/mt CFR. According to market sources, no ex-CIS pig iron deals have been concluded in Turkey the past week.