Sources inform SteelOrbis that both CIS and Brazil pig iron suppliers continue “holding off” on deals with US pig iron buyers due to the relatively widespread between offers and buying bids. Ex-CIS and ex-Brazil basic steelmaking pig iron is reportedly on offer at “minimum of $410/mt CFR US port with US buyers seeking sub $400/mt CFR US port prices.”
A source noted that due to lower global scrap prices, the expectation of a correction in the US domestic scrap prices in August, and the outlook of “a higher risk for fourth quarter on global political changes that may trim US finished steel prices,” US mills and third-party buyers are seeking to reduce risk by sealing deals at lower prices. Additionally, the downtrend of coking coal prices and met coke plus relatively stable iron ore prices in the face of the global scrap price downtrend “has US mills expecting a significant cut from deals achieved during more certain times.”