The weekly Davis Index for CIS basic pig iron was flat at $313/mt fob Black Sea on Friday in a quiet market.
There were no pig iron sales reported from the Black Sea basin this week, however, suppliers remained firm and continued offering at $320-325/mt fob amid limited availability. Demand for pig iron from China supported these price levels in June, while buyers from other outlets refused to accept them. This week, China suspended bookings, and if remains silent next week expect importers from other countries to insist on discounts.
The US pig iron market has been inactive since the beginning of June. Buyers stepped back after prices exceeded $322/mt cfr, as offers moved to $330-335/mt cfr. Before resuming negotiations with CIS pig iron exporters this time, they’re waiting for the domestic scrap market to settle for July, which is anticipated to soften.
There were still no deals reported in Italian pig iron market because of a persistently wide gap between bids and offers. Buyers aren’t ready to pay more than $310/mt cfr, while CIS suppliers are targeting $330/mt cfr. As a result, the weekly Davis Index for CIS pig iron in Italy remained flat at $320/mt cfr on Friday for a third consecutive week.
The only transaction was confirmed this week from Russia’s Far East, as exporter sold 5,000mt of pig iron to South Korea at a price that’s equivalent to $320/mt fob Black Sea.