This week, merchant pig iron exporters from the CIS increased supply during negotiations with US buyers amid continued strong demand and price increases in China. This week, a trader sold a batch of pig iron from the CIS countries at $ 395 per ton in China, market participants said.
Supply concerns also raised prices after a mining accident halted iron ore concentrate production at Russia’s NLMK, which raised doubts about its production. According to traders, the supplier is not currently on the market.
Buyers’ demand in the United States is $ 370-375 per tonne, while offers are at $ 390-395 per tonne. Two CIS suppliers are currently negotiating with US buyers, with sales estimated by some market participants at USD 380–385 per tonne. According to them, a large Russian supplier offers China at a price of $ 400-410 per ton. One Ukrainian supplier says it is not looking to Asia for sales due to strong demand in closer, traditional markets, and relatively low availability.
Sources say Italian talks will resume by the end of this week or early next week. Pig iron prices are rising too fast for buyers in the country, but there is an almost urgent need to buy and sales are expected next week. Sources say Turkey is likely to return to the market next week.
Since Brazilian pig iron is sold out and there are no other sources of salable material, the general expectation is that current offers will be accepted with very small discounts, if any. The US appetite is returning, and since China is always looking for materials, there is no alternative. Rising scrap prices are adding fuel to the fire, the source said.
In general, pig iron in the CIS is offered at a price of $ 365-375 per tonne depending on the region, which is about $ 5-10 per tonne higher than last week, with expectations of further growth at the expense of China and the United States. And this despite the fact that there were no sales last week.