Monday, October 11,
Pig Iron
Pig Iron prices in some places of China increased slightly with no improvement in transactions. Pig Iron plants in few places such as Yicheng, Shanxi still haven’t resumed productions and are expected to be operational by the beginning of November.
Prices of pig iron are expected to increase further due to higher cost of inputs- Iron ore concentrates and coke.
Coking Coal
The coking coal prices have gone up by $ 8-10/MT. Coking coal is a raw material for Pig Iron. So, the rise in prices of coking coal could also be one of the factors behind the price rise of Pig Iron in the Chinese market.
Scrap
Reportedly, the scrap market in China faces a supply crunch during the farming seasons as most small steel scrap collectors go home for the fall harvest, leading to tight resources in the market. So, the expected short supply of scrap in the market could lead to rise in prices of scrap. And as Pig iron is considered to be an alternative of Scrap, rise in prices of scrap may also lead to an increase in pig iron prices.
However, experts believe that the market trend is very likely to fluctuate in view of the volatile finished steel products market and most local traders now prefer to wait and watch as raw material prices are on a rise.
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