Global prices for pig iron have indicated a sizeable drop since mid-September, mainly due to very low demand, in the US specifically.
Current offers from the CIS are reported at $290-295/mt FOB, down by $10-15/mt over past the two weeks. Producers report that demand for pig iron globally remains extremely low with bids from the US heard at $300/mt CFR and even below. Sentiment is mainly negative, partly as the market players expect another $30-40/mt local scrap price drop in America as well as some production cuts. The latest deals to Italy have been reported at $310/mt CFR to a foundry client, which is line with the mentioned FOB range.
Brazilian pig iron prices have been reported at $280-285/mt FOB, in offers to the US in particular. However, according to the sources, $275/mt FOB might be available also, corresponding to around $295/mt CFR. As a result, the psychological $300/mt CFR mark might be soon surpassed in the American market, SteelOrbis understands. It is worth mentioning that, according to the sources, China has booked some two to three pig iron cargoes from Brazil at around $280/mt FOB. Some players believe that the demand coming from China, if sustained for now, might support the general pricing for pig iron.