Demand for basic pig iron from Italian mills is not picking up, but a price increase is imminent in line with hiking international prices. CIS-origin offers to distributors are expected to hike by $20/tonne ($22/t) on-month in June to $340-345/t cfr Italy, market participants tell Kallanish.

Pig iron consumption has collapsed in Italy. Italian mills are buying very small volumes in consignment at ports at the equivalent of $330-335/t cfr, only to satisfy their immediate needs. There is enough material at the main Italian steel port, Marghera, particularly because three vessels of pig iron from the self-proclaimed Donetsk Peoples’ Republic (Donbas) have reached Italy in the past month. This material is normally purchased by mills at $20/t less than CIS pig iron prices and is currently sold at $310/t cfr, sources say.

As Chinese demand continues to support prices, availability is becoming an issue for Italy, but sources believe it will be compensated for by new offers of Donbas material.

CIS pig iron prices are at around $320/t fob Black Sea. Offers to the US reached $335-350/tonne cfr Nola, in line with Chinese prices (see Kallanish passim).