CIS merchant pig iron prices stable, upside seen this week

Chemical News: CIS merchant pig iron prices stable, upside seen this week

https://www.chemnet.com Jul 11,2017 Platts

Turkish heavy melting scrap prices have continued to climb since June, gaining around $20/mt over the last month.

At the same time the Black Sea billet and Turkish HRC prices both showed an upward movement.

In the case of CIS pig iron, the shortages on the supply side are also likely to be a factor.

"Donbas still seems to be out or limited to some exports. But nobody knows where and how supply reaches the plants. Therefore other sources pretend that [there is] no availability," a large trader said.

Ukrainian material for July shipment was trading between $350-$355/mt CIF Italy/US, depending on the volumes.

A Ukrainian producer was offering July shipment at $335/mt FOB Black Sea.

Deals in the $340s on a CIF basis, (around $320/mt FOB) were also reported by trade sources.

This week, a mill told S&P Global Platts it raised offers for remaining July and August shipment to $355-$360/mt CIF, equated to $335-$345/mt FOB Black Sea/Sea of Azov.

"I think there is a chance for a $5-$10/mt increase," a trader said. Other trade sources also believed in a moderate hike.

Further increases will be hampered by seasonally slower demand, a trader said.

On Friday, Platts weekly pig iron assessment ranged $325-$330/mt FOB Black Sea, unchanged on the week.
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