Higher coking coal prices in the global market have kept Pig iron prices firm. Coking coal prices have hit to highest levels at USD 236/MT, FoB Australia, and have clearly impacted global Pig iron market.
There were mixed sentiments prevailing in the market. Brazil based Pig iron manufacturer has restarted the additional blast furnace looking towards the uptrend in the market, whereas CIS nation Pig iron manufacturers namely from Ukrainian and Russian mills reduced their offer volume for October shipment due to increasing coking coal prices and low global scrap prices.
Currently, weekly assessment for Pig iron from CIS nations is assessed at USD 240-242/MT, FoB Black Sea, up by USD 5-7/MT as compared to last week when prices were at USD 235/MT, FoB Black Sea.
India based largest Pig iron exporter, MMTC is yet to open its Pig iron export tender. Market participants believes that at current market scenario, if India could export steel grade Pig iron, the tender may attract the bids around USD 270-275/MT, FoB India.
Pig iron prices from Brazil is hovering at USD 240-255/MT, FOB Brazil. Prices remained firm at such levels since 2 last weeks.
South east Asia based Pig iron importers are not much active in the Pig iron market. Few Thailand based importers are importing small shipments of not more than 5,000 -6,000 MT Pig iron. Currently offers for Pig iron in Thailand is hovering around USD 275/MT, CFR Thailand.
If we talk about Italy, the second largest Pig iron importer, currently prices for Pig iron in Italy is hovering at USD 254-255/MT, CNF Italy according to sources. Vessel freight to Italy is around USD 15/MT.
Turkey, the another major importer of Pig iron is importing scrap rather than Pig iron. Current offers for Ukraine based Pig iron in Turkey is USD 255-260/MT, CNF Turkey whereas US based scrap prices in Turkey is still lower at USD 222-225/MT CNF. Higher Pig iron prices have made Turkey based steel mills to look for other alternatives like imported scrap and billet.
Bangladesh- is not a regular buyer of Pig iron. However, it majorly imports Pig iron from India only. Currently, Bangladesh is more inclined towards the import of billet. However, current offers for Bangladesh would come around USD 250-255/MT, FoB with additional vessel freight depending upon the origin of exports.
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