The weekly Davis Index for CIS basic pig iron decreased by $19/mt to $311/mt fob Black Sea on Friday as negative market sentiment prevailed.
Demand for CIS pig iron worsened significantly at all main outlets – in the US, Italy, and Turkey and most negotiations were on hold because of trading uncertainty amid the COVID-19 spread. Market participants expect CIS pig iron prices to drop due to the challenging global market conditions and a downtrend in ferrous scrap prices.
The most recent pig iron sale from the CIS was done at $350-355/mt cfr to the USA in the second week of March.
The weekly Davis Index for the CIS pig iron in Italy dropped by $14/mt to $333/mt cfr on Friday as business activity remained non-existent in the Italian pig iron market after the country went into a lockdown to contain COVID-19’s spread.
Steel output from the region has also been impacted. Last week some long steel producers in Italy suspended operations followed by flat steel producers doing the same this week. Raw materials purchase also remains out of reach in Italy now.