Over the past week, demand for ex-CIS pig iron in the international markets has continued its slow revival, though it has failed to reach expected levels. For now, pig iron offers from the CIS region to export markets are still at $385-395/mt FOB, indicating a stable trend week on week.
Market sources report that ex-CIS pig iron sales to Turkey and Italy last week were concluded at $400/mt CFR. It is heard that CIS-based suppliers are still making sales to these countries - their main export markets - but demand for ex-CIS pig iron in these markets has not accelerated yet. On the other hand, since Turkish mills’ demand for import scrap has slowed down again in May, the predicted revival in demand for ex-CIS pig iron is not expected to materialize for some time.
Meanwhile, SteelOrbis has been informed that ex-CIS pig iron sales to the US are concluded at $410/mt CFR. With scrap prices in the US becoming clearer, market sources believe that demand for pig iron in the US may improve and purchases may accelerate.
Although the railway workers’ strike at Arcelor Mittal’s Ukraine-based Kryvyi Rih plant has prevented the producer from giving pig iron export offers for a while now, with workers resuming their shifts the producer is expected to start giving offers again.