After the EU made clear that only Russian finished steel is sanctioned, Italian pig iron buyers have been trying to confirm they will face no legal issues dealing with Russian banks to import Russian pig iron.

Italian distributors who buy from CIS producers to replenish stocks at the port of Marghera did not purchase pig iron last week, despite the need to replenish stocks at Marghera, as this issue needs to first be clarified.

Once this has been settled, sales are expected to occur at considerably increased prices compared to pre-Ukraine war levels. The Italian pig iron market has become quiet amid uncertainty and shortages of material. The last vessel of pig iron shipped from Russia before the invasion has reached Marghera, giving buyers some relief, sources tell Kallanish.

Russian producers are now offering to Italy at $790-800/tonne cfr, while Brazilian material is being offered at a staggering $1,000-1,030/t fob Brazil for a large, 35,000-tonne cargo, two sources confirm. Freight to Italy of approximately $90/t has to be paid on top, traders point out.

The last pre-war transactions between Italian buyers and CIS suppliers were at $610-615/t cfr Italy, for limited tonnages of between 7,000t and 15,000t for each transaction. Fresh contracts this week are expected to reach $800/t cfr.

Meanwhile, pig iron prices continued to rise globally amid shortages and very limited sales last week. The latest transaction from Brazil to the US reached $970/t cfr Nola. This is for a large, high-phosphorous material Brazilian cargo sold late the week before at $920/t fob, for June/July shipment (see Kallanish 18 March).