According to several sources, pig iron offer prices to the US are soft-stable as buyers are waiting for further market information due to the recent dip in domestic scrap and coking coal prices.
The last deals at year-end 2016 for basic pig iron were reported at $320/mt CIF New Orleans which are equivalent to $300-310/mt FOB Black Sea and $305-310/mt FOB Brazilian port.
Early in January, offers for basic pig iron from the CIS were heard at $310-315/mt FOB Black Sea and from Brazil at $310-320/mt Brazilian port.
According to a source close to SteelOrbis, offers have continued relatively stable with prices in Brazil firming slightly up the week ended January 20 with a known deal from the northern region closing at $330/mt CFR New Orleans. At a rate of $10-15/mt on ocean freight from the northern Brazil region to the US, this deal translates to a price of $315-320/mt FOB Brazilian port for basic steelmaking pig iron, but within the previously reported range.
As of this week, offer prices for basic steelmaking pig iron from the CIS have widened by $10/mt on the low end of the range and are now $300-320/mt FOB Black Sea but remain the same for Brazil at $310-320/mt.
In regards nodular and foundry pig iron, a month ago SteelOrbis reported Russian origin (low-manganese) nodular and foundry pig iron offers at $350-360/mt FOB Baltic Sea and Brazilian origin pig iron offers at $350-360/mt FOB Brazilian port. Since then prices have moved down $10/mt from both regions and are now at $340-350/mt FOB Baltic Sea and $330-340/mt FOB Southeast Brazilian port. A source noted, “From Southeast Brazil, freight rates are substantially higher at over $25/mt above the $10-15/mt from the northern locations. This makes nodular about $365-370/mt CFR New Orleans.”