It is reported that the price of pig iron in Jiangxi province continues its increase trend after the Spring Festival. The purchase prices of general steel mills in the region all sees some jump with the pig iron produced in south China posts at CNY 2820 per tonne to CNY 2850 per tonne while that produced in north China stands at CNY 2900 per tonne.

According to the local steelmakers at the present, the market resources of pig iron are still tight as many iron mills haven't resumed their productions yet. Both the prices of coke and iron ore saw some increases recently and therefore pushed up the pig iron production cost. But steel mills are willing to accept the higher pig iron price because as they resume productions, the demand of pig iron soon pick up, making the market supply tighter.

Currently, Shandong pig iron prices at CNY 2700 per tonne to CNY 2800 per tonne, while Yunnan pig iron goes at CNY 2500 per tonne. As for the future trend, insiders believe the price would continue to increase in the near future, but the range wouldn't be wide.

(Sourced from MySteel.net)
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