The demand for cast iron from the CIS is growing rapidly

Pig iron export prices in the CIS have received a positive boost from Vale's iron ore supply disruptions as well as new seasonal demand from the United States.

The weekly price of pig iron supplied across the Black Sea was at $ 340 per ton on Friday, up about $ 10 per ton in a week driven by several deals at higher levels.

Sales were concluded at around $ 360 /t as CIS producers have maintained their offerings for the past three weeks, despite recent reluctance by American buyers to book at higher levels. Continuing expectations for a bullish domestic scrap market in the US next month amid seasonal increases in steel demand and higher prices for iron imports from the CIS and Brazil.

But while US buyers have yielded to higher supply with new orders, the second largest iron market for the CIS, Italy, continues to resist higher prices.

The reluctance is partly due to the high stocks of imported materials from Russia, Ukraine and what the Italians came up with "... in the Donbass." It is the last pig iron supplied at slightly lower prices from mills in the breakaway eastern republics of Ukraine. Offers to Italy from Russia and Ukraine rose to USD 360-370 /ton CFR Maghera. However, with port-side material still available at around $ 350 /t CFR and slightly lower for Donbass material, there were no local deals at these higher levels. the participants speak.

Turkey - the third largest market for the CIS - is also on the cusp as scrap prices continue to fluctuate. However, Donbass materials enter the country in small batches, in addition to some Iranian batches, the sources say, thereby preventing large orders for pig iron in the CIS.

Deliveries of Russian high-purity pig iron to the United States and Europe rose again to USD 370 /tonnes in the United States and USD 380 /tonnes to European countries.