During the past week, international demand for ex-CIS pig iron has not improved, with only a few purchases being made. In the same period, ex-CIS pig iron offers to the export markets have declined by $5/mt week on week to $390-410/mt FOB.
Market sources state that ex-CIS pig iron prices to the US are currently at $410-420/mt CFR, but for some time now negotiations have not resulted in actual sales as CIS-based suppliers have considered US buyers’ firm bids to be on the low side. Demand for ex-CIS pig iron in the US is poor as compared to previous weeks. As mentioned in SteelOrbis’ report published on July 30, US-based pig iron buyers are targeting price levels below $400/mt CFR US ports. Since prices in the local US scrap market are expected to fall in August, buyers are exerting further downward pressure on ex-CIS pig iron quotations.
Ex-CIS pig iron offers to Italy are in the range of $410-425/mt CFR. However, Italian buyers’ firm bids are at $405-415/mt CFR, and so ex-CIS pig iron deals in Italy have been concluded in the range of $405-418/mt CFR Marghera port.