The weekly Davis Index for CIS basic pig iron increased by $11/mt to $368/mt fob Black Sea on Friday on new sales to the USA and the Middle East.
Demand from the US for pig iron supported further prices increase in the CIS export market this week after a Ukrainian and a Russian producer each sold 50,000-55,000mt of the material at $387-388/mt cfr to the USA for October-November shipment. Previous deals were closed at around $360/mt cfr at the end of August. US importers accepted higher prices for pig iron amid rising local ferrous scrap prices and a revival of steel product sales.
Demand for pig iron was also noticed in the Middle East with a Ukrainian producer selling about 30,000mt of the material at $404/mt cfr to the UAE.
The weekly Davis Index for CIS pig iron in Italy increased by $4/mt to $375/mt cfr on Friday as exporters raised offers, considering deals at alternative outlets. CIS pig iron sellers began targeting $380-385/mt cfr, though buying activity was low in Italy and negotiations were sporadic.
The Chinese imported pig iron market was quiet this week. A sale for Russian-origin material at $394.50/mt cfr was reported, but it was done around a week ago and did not reflect the market reality.