The weekly Davis Index for the CIS basic pig iron rose by $4/mt to $330/mt fob Black Sea on Friday, on increased trading activity.
The CIS export pig iron market was very active during the week. Delayed demand pushed prices higher amid scarce offers for the material.
The biggest price increase was fixed in the US. A Russian supplier sold 50,000mt of pig iron to US at $363/mt cfr, while previous deals closed at around $347/mt cfr during the second half of February.
A Ukrainian exporter traded 5,000-10,000mt of pig iron to Italy at $347/mt cfr, increasing over $343/mt cfr a week ago. As a result, the weekly Davis Index for CIS pig iron in Italy rose by $4/mt to $347/mt cfr on Friday. Italian customers tried avoiding price increases last month, however, they had little choice but to accept elevated prices because of its rise in the global pig iron market, which was driven by strong demand and low supply.
The same Ukrainian exporter sold around 10,000mt of pig iron to Spain at $363/mt cfr.
Trading activity is expected to decelerate next week, however, CIS pig iron suppliers raised their offers to $330-335/mt fob Black Sea.