A market characterized by calm - thus Assofermet (association of Italian steel industry traders) describes the pig iron market in Italy. "The slight weakening in scrap prices and the low quotations for pig iron in Italy (never concretized but the subject of much discussion in the month of May) created a calm in the market on the part of buyers, but also created a climate of suspense and anticipation among dealers in pig iron," Assofermet's note on the market says.
The warehouses of the steel mills are well stocked and supplies of pig iron are available. Consumption, which was sustained in May, will see some adjustment with the introduction of the holiday timetables of some producers.
At this juncture, the expectations of traders are being pulled in two directions. "On the one hand, purchases have been suspended in the belief that prices will decline. On the other hand, the international pig iron producers are due to announce their quotations for the third quarter and have already indicated an increase of $20-25/mt - the Assofermet note continues - supported also by strong demand for scrap in Europe, that in the current quarter will see quantities increase by a considerable extent."
As regards ferroalloys, prices are experiencing a positive evolution. "All traders are hoping to obtain good prices, also in the short term. In this context, Fe-Si 75/80 is at high price levels and is only found with difficulty, Fe-Cr has gained around 20 dollars while the price of Si-Mn is experiencing tensions.