The weekly Davis Index for CIS basic pig iron was flat at $313/mt fob Black Sea on Friday on new sales to China.

 

China was still active booking pig iron this week. An exporter from Ukraine was heard to close a deal at around $346/mt cfr China for 45,000-50,000mt of pig iron from the Black Sea, which is consistent with the most recent transaction from Russia. Another Russian supplier sold 15,000mt of the material for $348/mt cfr to China, but this cargo is due to be shipped from the Far Eastern port of Russia. Moreover, China was heard to purchase a cargo of pig iron from India at $338/mt cfr.

 

Some CIS pig iron suppliers are currently negotiating with Chinese importers, targeting $350-355/mt cfr or $320-325/mt fob Black Sea for August or September shipments.

 

Demand for pig iron at other outlets was low this week. CIS exporters continued to offer the material for $325-335/mt cfr to the US, referring to prices in China as well as limited allocation of the material because of sales to the country, but US buyers refrained from bookings. US customers were silent after they bought pig iron at around $320/mt cfr from the CIS around two weeks ago.

 

There were no deals in the Italian pig iron market because of wide gap between bids and offers. CIS suppliers continued targeting $330/mt cfr, while buyers refused to accept prices above $310/mt cfr. As a result, the weekly Davis Index for CIS pig iron in Italy was unchanged at $320/mt cfr on Friday.

 

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