Russian pig iron prices increased

Prices for Russian pig iron in May increased by 12 $/t compared to last month, to 410 $/t FOB Black Sea. The positive dynamics of pig iron prices in the first half of the month was facilitated by the conclusion of a number of large contracts with buyers from Europe and India. And in the second half of the month, a negative correction was observed in the market due to the weakening of the commodity market in Türkiye and America.

At the beginning of the month, quotations of Russian pig iron suppliers were growing due to improving sentiment among buyers in the European market and growing preconditions for a positive correction in scrap prices. In these conditions, pig iron suppliers from Russia increased their offer quotes to $400/t FOB. In Türkiye, there was a restocking of raw materials from producers and prices also increased to $410/t FOB Black Sea.

The upward trend for pig iron strengthened in May due to large-tonnage transactions with buyers from India and Europe. This gave optimism to Russian pig iron suppliers, who were already contracted until the end of June. A large contract for the supply of pig iron was signed with importers from India at 445 $/t CFR or 405 $/t FOB. 40-50 thousand tons of pig iron was sold to Europe at 435-440 $/t CFR or 410 $/t FOB. The offer of Russian pig iron for Turkish buyers was in the range of $440-445/t CFR, but no deals were noted and Turkish importers preferred to buy scrap instead of pig iron.

Towards the end of the month, the market began to weaken, amid a decline in business activity. A large contract was discussed with a buyer from Italy for the supply of 40-50 thousand tons of Russian pig iron, presumably at the price of the previous transaction ($410/t FOB). However, there was no information about the results of the negotiations. Cast iron prices were put under pressure by the weakening scrap market in Türkiye. The lack of support from buyers from Asia due to limited railway capacity to the Far East also had a negative impact. 

However, by the end of the month, prices for Russian pig iron began to rise again against the backdrop of increased demand from traditional markets: Europe and Türkiye.
In the last week of May, the reference price for Russian pig iron increased by 5 $/t, to 415-420 $/t FOB.