Sources inform SteelOrbis that due to recent price softness and longer-term uncertainty in the US domestic steel market in regards the sustainability of high finished steel prices, mills have been hesitant in closing pig iron import deals in September. The lack of activity in the spot market from both Brazil and the CIS has resulted in lower offers.
Sources inform SteelOrbis that ex-CIS basic pig iron offers to the US are presently at $380-390/mt CFR US port.
A source informed SteelOrbis that ex-Brazil basic pig iron prices have also decreased and are presently at $375-385/mt CFR US port. The ex-Brazil basic pig iron price in an August 14 SteelOrbis report was reported as $390-400/mt CFR US port, a difference of $15/mt.
The downward offer adjustments are reportedly due to low demand from the US market as it waits for the results from the October scrap buy-cycle. From initial expectations as October nears, sources inform SteelOrbis that both HRC and scrap prices “seem to have reached bottom.” The source added, “With the positive expectation for both scrap and HRC in Q4, pig iron may see prices remaining stable to firming up in October.”