Italian pig iron import prices are said to have rock-bottomed. Prices have decreased by $100/tonne compared to August, in line with the summer international lull, but traders and CIS pig iron exporters to Italy have now registered a surge in demand and appetite for material.
The latest transactions towards the end of last week were implemented at stable week-on-week values. Italian distributors are purchasing relatively high tonnages of CIS pig iron, to replenish stocks at the main Italian steel port of Marghera, at $550/t cfr on average for 7,000-8,000 tonnes, Kallanish learns from market participants.
The current price stability together with the surge in demand are causing sellers and traders to become more optimistic about their future activity. Mills continue buying between 1,000-2,000t of pig iron in consignment at Marghera at the equivalent of $550-560/t cfr, sources say.
According to rumours, traders are offering Donetsk mills’ material in Italy at $500-520/t fob Black Sea. Pig iron sales to northern European countries are in line with Italian prices but freight is significantly more expensive. This stands at approximately $40/t from the Black Sea to Italy and $80/t to reach northern European ports.
Meanwhile, Italian billet remains stable month-on-month at €590-610/t ($698-722) ex-works, with activity reduced. Appetite for CIS billet in Italy also remains limited.
Natalia Capra France