Strong coking coal prices in the global market have made Pig iron manufacturers to hold their offers firm across the world .
CIS nations Pig iron manufacturers namely Ukraine and Russia, the largest exporters of Pig iron are keeping their export offers on higher side.
The sharp increase in seaborne coking coal prices have clearly impacted global pig iron prices. Coking coal prices have crossed the USD 200/MT mark, it had touched to a level of USD 210/MT FOB Australia, highest since 2012 against USD 100/MT, FoB Australia around 2 months back.
Bearish sentiments are still prevailing in the global market. Currently, weekly assessment for Pig iron from CIS nations is assessed at USD 240-245/MT, FoB Black Sea.
India’s recent Pig iron export tender fetched bids around USD 247/MT, FoB, which was higher BY USD 7/MT, FoB from the last export tender bids. However, the company didn’t award the tender because of better realization from the Indian market.
If we talk about Turkey, there is a wide gap between prices for imported scrap and Pig iron. Currently imported scrap offers for HMS 1& 2 are hovering at USD 223/MT, CNF Turkey. Whereas, offers for HBI will be around USD 260/MT, CFR Turkey from the Black Sea. Higher pig iron prices have made Turkey based steel mills to look for other alternatives like imported scrap and billet.
Ukrainian based Pig iron manufacturers are sticking to their offers at USD 240-245/MT FoB for Oct shipments. Whereas few other CIS based manufacturers wish to sell the material at USD 255-257/MT, CIF Italy (USD 240-245/MT, FoB, Ukraine, and vessel freight is USD 15-20/MT).
Current Pig iron offers at Bangladesh are at USD 275/MT, CFR Bangladesh from Russia. Vessel freight from Russia to Bangladesh would be USD 20-22/MT. However, Indian steel grade Pig iron export offers to Bangladesh will come around USD 270-275/MT, CFR Bangladesh.
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