CIS pig iron producers raise offers $40 per tonne after scrap surge

London 12 January 2011 10:05

Producers of low and high manganese pig iron in Russia and Ukraine increased their fob offers after scrap prices strengthened rapidly since late-December.

Latest offer prices for February delivery were $540 per tonne fob from Black Sea and Baltic Sea ports from Russian producers of low manganese pig iron, this is up from $500 per tonne fob towards the end of December.

Major producers of high manganese pig iron in Ukraine upped their offer price to $520 per tonne fob, also an increase of $40 from $480 per tonne fob in late December.

A Turkish mill also bought a 10,000 tonne-cargo of high manganese material at $530 cfr Marmara last week.

The market has strengthened since though.

An Italian mill was offered a high manganese cargo from Ukraine at $545 cfr on Tuesday.

“They are calling it a speculative bubble, but stocks of pig iron are low across Europe,” a trader said.

With demand strong among flat product producers in Europe, and strengthening to scrap prices, pig iron producers see no reason for the market to slow soon, market participants said.