This week, the global pig iron market has started to issue indications of a stronger trend for the coming period. The price hike of 65 percent agreed for the 2008 iron ore prices, the offers that were dramatically shaped at the beginning of last week according to the changes in scrap prices and the bookings that had started to be concluded, all these provided the greatest indications that BPI prices are likely to soar.
In the Indian pig iron market, the bookings concluded at the beginning of last week varied in a range of $510-515/mt FOB. Meanwhile, as of the second half of the week in question, the bookings concluded rose to the level of $525/mt FOB.
As regards the Brazilian market, while offers for BPI stood at the level of $460/mt ten days ago, the price expectation for last week varied in a range of $500-510/mt FOB.
In the Russian market, while BPI for April shipments was sold in a range of $490-495/mt FOB two weeks ago, offers were above the level of $510/mt. Last week's sales and offers indicated a great rise compared to the previous week. Russia-origin BPI was offered above the level of $530/mt FOB, whereas in India BPI found a buyer at $600/mt C&F.
As regards this week and beyond, it is estimated that the offers in question will mark a further rise in the coming weeks. However, the prevalent expectation is that buyers will resist the levels in question, that offer levels will not drop and that the producers will conclude their purchases at these levels for the mere purpose of avoiding a halt in their manufacturing activities.