Sources inform SteelOrbis that basic steelmaking pig iron offers from the CIS region to the US have been limited over the past two weeks as the US domestic scrap market settled. With the sideways movement on US busheling scrap and less than initially expected downward trend on shredded scrap prices in the May buy-cycle, ex-CIS pig iron offers are reportedly “seeking direction” as mills begin to negotiate pig iron into their buying mix for summer delivery.
Ex-CIS basic pig iron offers to the US are reportedly at $360-380/mt FOB Black Sea and $380-400/mt FOB Baltic Sea, which would roughly translate to approximately $400-420/mt CFR US port. A source reports some softening and willingness to negotiate on the seller’s side, given ex-CIS basic pig iron offers down to $390-395/mt CFR Italy heard in the market this week, but also product need by US mills and expedited delivery arrangements may support higher prices to the US.