Steel Products
CRU: US Pig Iron Prices Diverge From Prime Scrap Tags
Written by Brett Reed
September 17, 2023
Mixed trends were observed in prices of ore-based metallics as demand stayed subdued in Europe and the US. Buying activity had been limited in the US due to several upcoming mill outages and ahead of the UAW strike. However, prices have found stability despite declines in prices of prime grades of scrap.
In the CIS, pig iron prices increased $39 per metric ton to $355 per ton FOB Black Sea. Local mills continue to favor crude steel production, causing merchant pig iron output and export volumes to decline in July and August. Additionally, high transportation costs have limited demand for Ukrainian material, with the main exporting destinations for Ukraine remaining Poland and Romania.
Russian export volumes have continued to decline the last two months because naval blockades in the Black Sea have caused logistical issues. But export prices received support month over month (m/m) driven by restocking activity and a rise in scrap prices. Additionally, depreciation in the ruble has supported profitability for Russian producers.
In Europe, pig iron prices declined $5 per ton m/m to $395 per ton CFR Italy, though the price range of deals has widened this month. US pig iron prices, in contrast, gained stability, rising $5 per ton m/m to $440 per ton CFR NOLA.
The stability in pig iron price stood in contrast to prices for busheling scrap, which declined sharply m/m. Buying activity had been limited due to multiple planned mill outages and ahead of the UAW. Also, pig iron supply in Brazil has begun to tighten slightly as steel production in Brazil has stabilized over recent months. That has allowed pig iron producers in Brazil to keep prices flat m/m and raise offer prices slightly to buyers in the US.

Editor’s note
This article appeared first in CRU, SMU’s parent company. You can request more information about this topic. You can also learn more about CRU’s services at www.crugroup.com
Brett Reed
Read more from Brett ReedLatest in Steel Products

Active rig counts slipped in US, Canada
Drilling activity slowed in the US and Canada last week, according to the latest oil and gas rig count data released by Baker Hughes.

OCTG producers in Canada take aim at Mexico, US, others
Evraz NA and Welded Tube of Canada have lodged an unfair trade complaint against imports of OCTG, including those from USMCA trading partners Mexico and the US.

Final Thoughts
The difference: The spat with Turkey was a big deal for steel. This time, the 50% reciprocal tariff for Brazil – if it goes into effect as threatened on Aug.1 – hits everything from coffee and to pig iron. It seems almost custom-built to inflict as much pain as possible on Brazil.

CRU: US rebar and wire rod prices rise alongside S232 increase
CRU Senior Steel Analyst Alexandra Anderson discusses current market and pricing dynamics for long steel products in the US.
CRU: Excessive global supply could hit rebar mill investments in US
Following the onset of the war in Ukraine in March 2022, concerns about import availability and expectations of rising demand from President Biden’s Infrastructure Bill pushed US rebar prices to record highs. In response, a flurry of new mills and capacity expansions were announced to meet the rise in demand from growth in the construction […]