Posted on 24 Mar 2025
Italian pig iron asking prices are rising, owing to a scarcity of supply alternatives to Russia, Kallanish notes. However, port stocks are plentiful and buyers are cautious.
A Ukrainian producer is offering pig iron in Italy at $460/tonne cfr and higher depending on grade, whereas Brazilian material is being offered at $470/t cfr.
Pig iron stock availability at the primary steel port of Marghera is nevertheless robust, as buyers acquired Russian material prior to the exhaustion last month of the EU’s Russia pig iron quota.
The most recent contract for legally imported pig iron from Russia was executed approximately three weeks ago, involving a substantial vessel with a capacity of around 20,000 tonnes. This is now anticipated to arrive at Marghera. The deal price is speculated to be approximately $370/t cfr.
Italian consumers are now reluctant to engage in purchases of higher-priced material, as the potential resolution of the conflict in Ukraine could lead to the removal of restrictions on Russian material.
While inventory levels are robust, demand for pig iron remains subdued, particularly among foundries that are operating at only 50% of their capacity, significantly impacted by the ongoing economic downturn.
One steel mill is reported to have sufficient legal Russian pig iron inventory to meet its needs for the entirety of 2025. In the meantime, Ukrainian pig iron manufacturers are aiming for $500/t cfr Nola and selling at higher rates in the US.
Italian foundries association Assofond reports the market is experiencing stagnation, while costs for foundries and steel mills continue to rise. The foundries sector experienced a significant decline in both production and turnover last year.
Meanwhile, Russian pig iron exporters are holding back offers due to the continued appreciation of the rouble against the dollar. This, combined with excess supply, sanctions-related payment complications, and buyers’ cautious approach, is adding to uncertainty (see Kallanish 20 March).
Source:Kallanish
