India has been the main driver for scrap and pig iron prices in recent weeks, market participants inform Kalanish.

Offers of Russia-origin pig iron to India were at $425/tonne cfr, with Indian customers bidding at $410-415/t cfr and the most recent deal heard at $405/t cfr.

Pig iron from Ural Steel was on offer at $380/t fob, and from Severstal at $370/t fob Black Sea equivalent, with the latter producer normally shipping from the Baltic Sea. In the Baltic Sea, the northern producer considered a workable level to be at around $340-350/t fob, netting back from workable quotes to India at $405-415/t cfr India – considering freight at around $65/t, according to sources.

In Italy, the last sales made around a week ago were at $380-385/t and $390/t cfr, with material of new production available for sale in the range of $380-400/t cfr Italy, according to market participants.

As a result, pig iron prices were at $355-380/t fob Black Sea on Friday, up by $10/t from $345-370/t last week.

Tula Steel was on offer at $430/t fob Black Sea, with the supplier reported to be sold out for this year. Some market participants estimate pig iron export allocations from this supplier may be reduced from next year to cater for internal consumption, following the acquisition of NLMK’s longs division (see Kallanish passim). Evraz’s pig iron was on offer at even higher. These levels are however not workable at present.