The workable pig iron prices from the CIS have softened over the week. While the traditional buyers are either keeping silence or placing low bids, China remains rather active in the pig iron imports.
Ex-CIS pig iron prices have moved down by $5/mt over the week to $270-275/mt FOB for end-November – December production. Offers at $280/mt FOB are also available, but are no more considered widely workable, SteelOrbis understands.
According to the sources, China booked three pig iron vessels last week at the estimated price of $315-325/mt CFR while the previous round of deals was reported at $320/mt CFR mainly. With the freight coming to around $45-50/mt, the FOB level for the recent deals is in line with the current offers at $270-275/mt FOB. Moreover, China is expected to remain active in pig iron imports for now, which can help the CIS suppliers to survive the absence of the US and to avoid sizeable discounts.
The US customers remain largely inactive; market sources report they are not ready to discuss anything above $280-285/mt CFR ($255-260/mt FOB), which is not considered acceptable by the sellers. Some sources believe that the US will be back to the market by the end of the month. “US demand is not increasing but the stocks are decreasing. They will soon need to buy,” a trader believes.
CIS offers to Italy reportedly remain at $305/mt CFR ($280/mt FOB) while buyers’ price idea is at $290-300/mt CFR, SteelOrbis understands. However, according to the sources, some bids were heard at as low as $280/mt CFR. Therefore, the sellers are targeting to sell to Italy close to $280/mt FOB with most bids ranging between $255-270/mt FOB.
Turkey, being not the key global buyer of pig iron, is as well insisting on lower CIS prices amid slow sales to the EU and the US; however, is not inquiring aggressively. Price idea of the Turkish mills is around $290/mt CFR or around $272-275/mt FOB while the offers are estimated at $5/mt higher than that.