Prices of merchant pig iron available from CIS producers appear to have notched up again, as China resumed purchases at a slowly rising prices, and traditional buyers in other regions returned to the market. China is back for imports at higher prices, rising from around $320-325/tonne cfr previously to up to $335/t cfrtoday, Kallanish learns from market sources.

One Russian cargo was booked at $334/t cfr China this week, while another was booked at $335/t cfr, also this week. And another Russian supplier's lot was booked at $300/t fob equivalent, late last week. All cargoes are July-production material with August connsignment, although one may be from August production, and all three suppliers appear to now be out of July production material, sources say.

The latter Russian supplier also booked its July production pig iron destined for the US, which it sells on formula-based long term contracts. The price was netting back to $300/t fob, it is understood, or $318/t cfr Nola equivalent. The same producer's Italian long-term contract shipment was booked from July production, but the normally large (around 40,000t) lot was smaller due to the country's slow comeback from the Covid-19 lockdown.

Meanwhile, a Ukrainian producer also closed a US deal, late last week, at around $314/t cfr, sources say. This nets back to around $296/t fob Black Sea, and is likely to be followed by higher priced deals, considering China's appetite. The supplier's decision to sell to the US, despite a slightly lower price, was praised by some market sources, as "it would be unwise to put all eggs in the same basket, especially when the market is so unpredictable," one seasoned observer said, adding that equally important are long-term relationships.

But there is an ongoing frustration with the US' slow-to-rebound domestic steel industry, as internal political unrest has taken the centre stage in the last two weeks. Some sources expect more protective measures from current administration, but these measures are unlikely to extend to pig iron, they say. And with scrap prices expected to move sideways to slihgtly up in June, current pig iron offers may seem to high to some buyers.