A slowdown was observed in the global pig iron market

Last week marked a period of stabilization in the Brazilian pig iron market. Suppliers have been actively engaging in efforts to market raw materials at elevated prices. However, the industry faces formidable pressures, with lower costs for flat products and scrap in the United States exerting a significant influence. Throughout negotiation processes, suppliers are reaching agreements closer to the $450 per ton FOB, while premium pig iron grades command values in the range of $460-470 per ton FOB.

Brazilian suppliers are expressing concerns over the gradual reduction in available volumes of pig iron in the market. The weather conditions currently serve as the sole supportive element. The prices for iron ore have impacted the costs of steel scrap in the US domestic market and flat rolled products, resulting in a decrease in the quotes for scrap used as an alternative to pig iron by $20-30. Consequently, buyers are intensifying their pressure on suppliers.

Recent developments in the market have brought to light several pig iron transactions at the lower end of the price spectrum, which had been deemed relevant for several weeks. It appears that the market has finally shifted towards $450 per ton FOB, and buyers are reluctant to entertain anything higher in their purchasing considerations. Although premium grades of scrap may be offered at $10-20 more, the prevailing reality often limits the acceptable price to $460.

On the US import market, quotes in the ports of New Orleans are observed in the range of $480-500 per ton CFR. The lower values are more associated with offers from Brazilian suppliers, while pig iron from Ukrainian metallurgists is available on the spot for $500 per ton CFR. Reflecting the current market dynamics, Ukrainian suppliers have adjusted their prices downward by $5-10 within a week.

Similar trading levels are anticipated in the coming weeks, with buyers advocating for discounts. However, there is a noticeable resurgence in the cost of iron ore. The steadfast desire of suppliers to persist in trading at current prices is anticipated to fortify their position in the market.