The abolition of the export duty on pig iron from Russia in the amount of 4-7% supported exporters, maintaining the marginality of export transactions. In the first ten days of the month, offers from Russian exporters were at $460/t CFR or $435/t FOB for lots above 20 thousand tons. But market players noted a gradual weakening of demand. Some suppliers maintained the price due to a reduction in the supply of higher-quality scrap in Europe. At the same time, the rise in raw material prices was facilitated by an increase in freight due to the start of the grain season.
The average price of pig iron in July from exporters from the Black Sea region remained virtually unchanged compared to June and amounted to $412/t FOB. At the same time, during July, there was a gradual decline in prices for Russian pig iron amid weakening demand for raw materials in Europe and a volatile market in Türkiye.
In Türkiye, the pig iron supply deal was fixed at $405/t FOB or $425-430/t CFR. The reference price for Russian pig iron fell to $405-425/t FOB.
In the second ten-day period of July, pig iron quotations continued to decline amid weakening demand for raw materials in Europe. Offers from Russia decreased compared to the beginning of July from $430-435/t FOB to $420-425/t FOB. While demand in Italy did not exceed $430/t CFR, which corresponded to $402-403/t FOB Black Sea. The contract for the supply of Russian pig iron to Northern Europe was implemented at $435-440/t CFR. It is noteworthy that freight from the port of Novorossiysk amounted to $30-35/t and higher depending on volumes, and freight from the Black Sea ports increased from $22-25/t to $25-27/t. Another Russian contract for the supply of pig iron to Italy was noted at $415-420/t FOB ($435/t CFR).
In Türkiye, deals were concluded at $430/t CFR. The reference price fell to $400-420/t FOB. In the third ten-day period of July, demand for pig iron in Europe fell to zero, and in Türkiye, buyers focused on the semi-finished products market. Russian producers maintained offer quotations at $420/t FOB, but real demand did not exceed $400-405/t FOB Black Sea. The indicative level of demand for pig iron in Europe was at $425/t CFR ($395-400/t FOB). In Türkiye, demand for pig iron was weak, offers were at $430/t CFR or $405/t FOB.
In the last week of July, the reference price for Russian pig iron fell by $10/t, to $400-410/t FOB.
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