CRU
December 15, 2023
CRU: Ore-based metallics prices follow scrap price upswing
Written by Brett Reed
Pig iron prices rose month over month (MoM) for all major regions, driven by rising scrap prices. Supply has tightened in Brazil, extending lead times for US buyers. Additionally, higher domestic consumption in the CIS has restricted availability in Western Europe.
In the CIS, pig iron prices increased $48 per metric ton (t) MoM to $385/t FOB Black Sea. Higher domestic consumption and soft external demand has limited export volumes of Ukrainian material. While risks remain associated with shipping Ukrainian material, there is a potential to use temporary sea corridors. Similarly, Russian exports of merchant pig iron continued to decline in November on softened external demand, resulting in reduced output as demand is primarily driven by domestic consumption.
