Although the current week has been quiet in terms of pig iron sales, the key suppliers from the CIS have increased their prices on the back of the general uptrend of raw material and finished steel prices. Ex-CIS pig iron offers have moved up to $295/mt FOB,, with some mills offering $300/mt FOB, while two weeks ago the levels were around $10/mt lower. Negotiations are reported in all key consuming destinations and may result in deals soon.
Offers to the US are coming at $320-325/mt CFR, but most buyers are not ready to pay above $315/mt CFR. Sources report a sale from Russia at $325/mt CFR, but the cargo will be shipped in early December due to the customer’s urgent requirement. In Italy, offers and bids are the same as in the US market, with no fresh transactions reported.
Mills report that China is in the market again with one buyer searching to book 50,000 mt at $335/mt CFR for prompt shipment. Others report that for January shipments China is ready to pay $315.mt CFR, which might not be considered by the sellers as a workable level.
The workable level for pig iron in the Turkish market is mostly reported at $290/mt FOB, but sellers seem unwilling to sell lower than $300/mt FOB, SteelOrbis understands.