Export sales of pig iron from CIS countries are growing

Export sales of pig iron from the CIS countries picked up last week, orders came from all traditional destinations, including the United States, where negotiations had taken place a week earlier.

The Ukrainian supplier has sold a total of 120,000 tonnes to US buyers, with one small batch to be shipped this month. Sales ended at $ 358 per tonne Nola for all three lots and net income was around $ 338-340 per tonne FOB Black Sea. The Russian supplier also sold a lot in the United States at $ 340 per ton.

Market sources expect demand from the US is just starting to come back in anticipation of rising prices. The US domestic scrap market is expected to grow by about $ 30 per tonne this month and production is increasing.

China remains on the import market and has ordered two Russian cargoes supplied by two manufacturers at $ 378 per tonne, just a few dollars below the offer. According to traders, the two 50,000t cargoes will be loaded in October, with a net profit of about $ 340 per tonne on a fob net for the seller, including traders' profits. Demand is described as stable despite continued growth in domestic pig iron production in China.

Italy has also booked at least one Russian cargo, again at $ 340 per ton fob. Sources note that this was another long-term contract sale, but negotiations on the Ukrainian material are still ongoing. Turkey has booked a small shipment from Russia, again at a net return price of $ 340 per ton of key fob, and is expected to order more amid rising scrap prices and strong sales of flat products.

Sellers expect that prices are still rising and do not rule out that the mark of $ 350 per ton will be reached already in this round of sales. This will depend on the degree of recovery in US demand and the dynamics of the European market, as well as on China's willingness to raise bids. On Wednesday, Callanish estimated export prices for Black Sea pig iron at $ 340-345 per ton.