The weekly Davis Index for CIS basic pig iron increased by $3/mt to $344/mt fob Black Sea on Friday on new bookings to China. A limited allocation of the material and an uptrend in the global ferrous scrap market influenced prices as well.
The CIS export pig iron market remained firm with two deals to China reported this week. A Russian supplier sold 50,000mt of the material from the Black Sea at $378/mt cfr to China, while another exporter sold 10,000mt from Far East Russia at $380/mt cfr.
Last week, Ukrainian pig iron changed hands at $378/mt cfr China. This week, however, CIS suppliers are targeting $385/mt cfr and higher.
Demand improved in the US and pig iron buyers resumed negotiations in the second half of August. Bids were heard at around $355/mt cfr, while offers from CIS varied in the range of $365-370/mt cfr. No deals from CIS to the US have been reported so far due to the wide gap in offers and bids.
The weekly Davis Index for CIS pig iron in Italy was unchanged at $355/mt cfr on Friday amid a quiet market. Business activity remained at minimal levels in Italy due to summer vacations.