Issue 05, 2024 - This week's editorial: Pig iron prices stable, as sentiment leans toward downturns

Russia is reported to be facing challenges in transporting pig iron cargos to Black Sea and Far Eastern ports. At the same time, “there is no lack of Russian pig iron on offer,” a trader says.Offers were heard at $410-415/tonne fob Black Sea for March shipment last week.

"Turkey was asking for offers but yet no bookings," a Turkey-based trader notes.

In Italy, Russian producers are offering material at $450-460/t cfr for March delivery, targeting distributors and smaller quantities. In early January, distributors reportedly secured material at approximately $420-440/t cfr, and a large steel mill made a direct purchase from Russia at $430/t cfr, according to sources.

“I believe prices may decrease; maybe not significantly for Russian material due to limited pig iron allocations, but I expect a decrease of around $10 for Brazil,” an international trader observes.

Ukraine is heard to be shipping regular volumes to the USA.

India has not held any exporttenders, while reports suggest a weakening domestic market, resulting in pig iron import levels significantly below workable prices for Russian suppliers.

In Asia, Taiwan’s nominal buying price was estimated at $420-430/t cfr. In South Korea, there are reports about a 3,000-10,000-tonne deal done at the end of January at around $480-490/t cfr including a quality premium.

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