The weekly Davis Index for CIS basic pig iron was unchanged at $330/mt fob Black Sea on Friday.
CIS suppliers stood firm in their asking prices because pig iron allocation is limited. Two deals were reported this week, one of which was a CIS producer selling a large cargo to the US at $330/mt fob Black Sea, which market participants estimate would be around $350-355/mt cfr. Other CIS exporters offered the material to the US at a minimum of $365/mt cfr and up to $380/mt cfr.
A Russian supplier sold 10,000mt of low-manganese pig iron to Turkey at $350/mt fob Black Sea, but the cargo will be distributed to Turkish foundries, not steelmakers.
Activity in the Italian pig iron market has been completely non-existent because COVID-19 has caused mass quarantine in the country. Therefore, there were neither bids nor offers discussed. As a result, the weekly Davis Index for the CIS pig iron in Italy was flat at $347/mt cfr on Friday, corresponding to the most recent transaction fixed in early March.
Lockdowns in Italy have affected steel output. Three mills have already decided to halt production—they are Alfa Acciai, Ferriera Valsabbia and Duferdofin-Nucor at San Zeno Naviglio. Some companies are considering following suit.
Fim, Fiom and Uilm (Italian workers’ union) have demanded moratoriums at all metalworking companies until March 22 for the safety of workers. The situation in Italy is a difficult one with unclear near-term prospects.