Global Pig iron producers continue to increase their export offers following price inflation on raw material (coking coal and iron ore).
Iron ore import prices in China moved to the highest level in two years to $ 80/MT in second week of Nov’16 and currently at $ 75/MT, whereas, coking coal prices have reached to highest levels since Oct’13.
CIS nations export offers have surged further by $ 10-30/MT in a week. On other hand, Turkey one of the bigger buyer of Pig iron is currently focusing on purchasing Scrap over Pig iron where the US origin offers for HMS 80:20 scrap is currently at $ 265/MT, CFR Turkey and CIS based Pig iron offers are at $335-340/MT, CFR Turkey.
India’s trading house MMTC one of the pig iron exporter, has opened a 30,000 MT Pig iron export tender today. According to market participants, the tender may attract bid at around $ 290-300/MT, FOB India due to the surge in global market.
Global Pig iron prices in Week 48
| Country | Price (USD/MT) | W-0-W (USD/MT) | Remarks |
| FoB Black Sea (Russia) | 310-320 | 10 | Prices moved up sharply by USD 10/MT in a week time due to further increase in coking coal and scrap prices |
| FoB Black Sea (Ukraine) | 310-320 | 20-30 | Prices remained firm due to expensive raw material. But offers are not seems to be workable. |
| FoB Brazil | 295-300 | – | Prices remained firm due to robust pricing of raw material. |
| FoB India | 290-300 | 5 | One of the major 30,000 MT Pig iron export tender by MMTC is going to expire today. Market participants anticipates that the tender will attract bids around $290-30/MT due to higher Pig iron prices in global market. |
| CIF Italy | 320-350 | 20-40 | Italy, a major Pig iron buyer is purchasing small quantities of Pig iron due to expensive material. |
| CIF Thailand | No offers | – | Last month brought a delayed shipment of 18,000 MT Pig iron from SAIL at USD 240/MT, FoB India. No new offers heard. |
| CIF Turkey | 335-340 | – | Turkey prefer scrap over Pig iron. Current offers for US origin HMS 80:20 scrap at USD 265/MT, CFR Turkey which is much lower than Pig iron. |
Source: SteelMint Research
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