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
Market Chatter This Week
On Monday and Tuesday of this week, SMU polled steel buyers on a variety of subjects, including steel prices, demand levels, sheet prices abroad, inventory, the UAW strike, and what people are talking about in the market
Housing Starts Decline in August
US housing starts slipped in August, according to the latest estimates from the US Census Bureau.
UAW Strike Leads to Ford, GM Temporary Layoffs
Ford and General Motors have announced temporary layoffs in the wake of the United Auto Workers (UAW) union strike.
Unifor, Ford Extend Negotiations for 24 Hours, Put Off Possible Strike
Unifor, which represents union auto workers in Canada, has extended negotiations with Ford, thus delaying a strike.
AISI: Raw Steel Production Rebounds
Raw steel output in the US ticked up for the week ending Sept. 16, a reversal after three weeks of decline, according to data released by the American Iron and Steel Institute (AISI) on Monday, Sept. 18.