The downtrend in Black Sea merchant pig iron prices has been less prominent in the last couple of weeks following more significant falls in May. Mills are trying to roll over their prices for August output sales and some are hoping for a price rebound next week after the Eid holiday in Turkey and the MENA region, market players said Friday.
A source at the Ukrainian producer Metinvest said it kept its offers at $250/mt CFR Turkey and Italy. Its last sales to Turkey were reported within a range of $245-$250/mt CFR and $250/mt Italy. But bids were lower, at $235/mt CFR in Turkey and $240/mt CFR in Italy, the Ukrainian mill source said.
Another Ukrainian producer, Donetskstal (DMZ), said it was finally back to production after a few weeks of downtime caused by a halt to pellet deliveries and pig iron shipments by rail due to rail strikes. As a result DMZ had to bank both its blast furnaces.
The mill is currently operating one blast furnace and will dedicate July to delayed orders and return to the market only later this summer. The DMZ source heard a few bids from the market at $220-$225/mt FOB Black Sea. "We would discuss $235/mt FOB," the source said. "This is the realistic level."
In Russia, a trader said pig iron prices would either consolidate at current levels or edge down but only slightly. He said it would be hard to push for price hikes given that there will be no bookings from Italian buyers in the next few weeks due to the holiday season there.
Also, the US market continues to show some interest, with bids at $260/mt CIF New Orleans for Russian material. This is $5/mt below earlier purchases and Russian mills have not budged so far, the trader said.
On Friday Platts put its weekly pig iron price at $230-$235/mt FOB Black Sea, down $5/mt week on week.
