Last week, an ex-Brazil transaction to the US for 20,000 mt of pig iron was concluded at $500/mt FOB, a similar price range compared with that observed in the second week of January. On the other hand, SteelOrbis has learned that some high volume pig iron transactions have been concluded from Russia to Far Eastern markets at $520-530/mt FOB, while some lower volume pig iron transactions have been concluded from Russia to Italy at $540-545/mt FOB. All the mentioned transactions are for deliveries to be made in late February or March.
Also last week, some pig iron export offers from Ukraine were reported at $520-530/mt; however, these offers seem not to have attracted the attention of Turkish buyers. Given the actual freight rates, ex-Ukraine pig iron offers above $500/mt FOB level are unlikely to be considered as workable prices by Turkish buyers.
In the international markets, limited finished steel product exports have also started to influence the raw material markets, since steel producers are not inclined to accepting higher raw material costs. In this context, some Turkish foundries have preferred steel scrap, which costs less than pig iron. However, foundries which are in hurry to deliver orders have continued to purchase pig iron.
Due to the floods both in Brazil and Australia, iron ore and coking coal supplies have shrunk, thus pushing up the prices of these raw material. It seems that pig iron suppliers, faced with higher production costs, will have difficulties in persuading steelmakers to accept higher pig iron prices.