Global pig iron prices from CIS nations remained relatively stable due to less demand compared with previous weeks and volatile global coking coal, iron ore and scrap prices.
In a week time, global iron ore prices witnessed a roller coaster ride and after moving down to a level of USD 70/MT, CFR China, it bounce back to USD 80/MT, CFR China this week. On other side, coking coal prices have moved down sharply to USD 298/MT, FoB Australia due to lack of trading activity from Chinese buyers.
Market momentum has paused after a continuous rally of around eight weeks during which pig iron prices kept moving sharply on weekly basis nearly up to 40%.
Notably, Indian pig iron exporters exploring export opportunities and testing price levels in the market for exports. Prime reasons are falling domestic demand due to demonetization, higher global pig iron prices and rupee depreciation.
The largest Indian trading house, MMTC has recently concluded 15,000 MT Pig iron export tender on 23 Nov’16 at around USD 275-276/MT, FoB India with scheduled shipment delivery between 05-15 Dec’16. In addition, the trading house also closed another tender for 15,000 MT Pig iron on 02 Dec’16, and in talks with the buyers for negotiations in order to finalize the tender.
Global Pig iron prices in Week 50
| Country | Price (USD/MT) | W-0-W (USD/MT) | Remarks |
| FoB Black Sea (Russia) | 300-310 | – | Prices remained relatively unchanged amid uncertainty in global coking coal, scrap and iron ore market. |
| FoB Black Sea (Ukraine) | 310-315 | – | Prices remained unchanged due to uncertainty in global coking coal, scrap and iron ore market |
| FoB Brazil | 295-300 | – | Prices remained stable due to robust pricing of raw material. |
| FoB India | 275-280 | 10 | MMTC, one of the largest pig iron exporter has recently concluded an export deal of 15,000 MT Pig iron at USD 275-276/MT, FoB last month. Shipment is likely to be ship to Bangladesh. |
| CIF Italy | 320-330 | – | Italy, a small buyer is purchasing Pig iron in small quantities from CIS nations. |
| CIF Thailand | No offers | – | Not buying Pig iron since last month as it imported around 80,000 MT Pig iron from Brazil 2 months back. |
| CIF Turkey | 330-335 | 5 | Turkey prefer scrap over Pig iron. Current offers for US origin HMS 80:20 scrap at USD 270/MT, CFR Turkey which is much cheaper than Pig iron. |
| CIF Bangladesh | 290-300 | 10 | Bangladesh is importing Pig iron from India. Recently concluded MMTC’s Pig iron export deal for 15,000 MT is likely to ship to Bangladesh between 05 -15 Dec’16. |
Source: SteelMint Research
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