It is observed that demand for ex-CIS pig iron in the international markets has remained at low levels during the past two weeks. In the given period, CIS-based pig iron suppliers have increased their pig iron offers to the US in line with the rises seen in domestic scrap prices in the US. As a result, ex-CIS pig iron prices have increased by $5/mt on the upper end to $365-375/mt FOB.
The ongoing downtrend of global steel prices and the weakness of demand in CIS-based suppliers’ target markets have both been significant obstacles standing in the way of a revival in international pig iron demand.
It is observed that the most recent CIS-based suppliers’ pig iron sales to Italy were concluded at $390/mt CFR, while buyers are seen to be avoiding orders with long delivery terms. Although domestic scrap prices in the US for October cycle have moved up, buyers in the US are still considering ex-CIS pig iron prices to be on the high side, and so they are postponing their ex-CIS pig iron purchases. The most recent pig iron offer from the CIS region to the US was at $395/mt CFR. As a result, Brazilian pig iron offers to the US at $375-385/mt CFR are more attractive for buyers.