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CIS PIG IRON OFFERS RISE $15-20/MT IN LINE WITH SCRAP.

Issued at 2012-11-09



Export prices of basic pig iron from Russia and Ukraine are on the rise, following Turkish scrap import prices rallying in the last two weeks. Stable iron ore prices and the rush to replenish stocks before the possibility of the worst of winter weather complicates navigation in the Black Sea basin are also affecting pig iron price dynamics positively, traders and producers told Platts Steel Business Briefing on Thursday.

From completed deals at $360/metric ton FOB Sea of Azov for Ukrainian material several days earlier and up to $380/mt FOB Black Sea for Russian material, prices are now understood to be going up, with a Ukrainian tender expected later today or Monday indicated in the region of $380/mt FOB Sea of Azov and Russian material around $400/mt FOB Black Sea.

Although scrap prices into Turkey have been rallying, the confidence that they will continue to increase seems to be slowly waning, traders warn and, along with on-going limited demand for finished products, is likely to stall or even reverse. "Turkish producers will continue to resist buying scrap at high prices," one trader said.

Availability of pig iron is understood to be moderate, with Ukraine's Metinvest not being able to indicate whether any December produced pig iron will be available, while Donetskstal is understood to already have closed around a third of its planned 110,000 mt December output. Sources close to Ukrainian producers said negotiations with South European buyers were closer to $400/mt FOB Sea of Azov, but no deals have been heard to be concluded for Ukrainian material at this level.

A Ukrainian supplier told Platts SBB that it feels confident about closing December tonnages due to active restocking, but noted that it is realistic about the pricing.

For Steel Prices, visit: http://www.steelbb.com/?PageID=332&price_type=6
For related articles, visit: http://www.steelbb.com/?PageID=183&article_id=113941


Source: SBB



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