Growth of domestic steel production and reduction of exports contributed to price increases in key markets
Pig iron price quotations in Brazil for the period from March 14 to 21 increased by $20/t, to $450/t FOB Ponta da Madeira. In the first half of the month, the cost of the product did not change. Local producers reduced foreign shipments by 29.5% in January-February, to 504.6 thousand tons, according to Instituto Aço Brasil. The reduction in volumes affected price offers.
At the same time, domestic demand in Brazil was unstable. January growth in steel production by 2.4% year-on-year, to 2.72 million tons, was followed by a decline of 1.6% in February, to 2.7 million tons. Accordingly, pig iron production in January increased by 4.4% y/y, to 2.22 million tons, in February it decreased by 0.9%, to 2.1 million tons.
In India, quotes from March 14 to 21 rose by $5/t, to $367.5/t FOB East Coast. Indian steel production showed a strong rise at the beginning of the year: in January – by 6.8% y/y, to 13.6 million tons, in February by 6.3%, to 12.7 million tons. This ensured increasing demand for pig iron from steelmakers. The strengthening of the Indian rupee from $/88₹ to $/86₹ makes the Indian market more attractive for importers.
Quotes in Italy from March 7 to 21 were stable at $377.5/t FOB Marghera. In the first week of March, the price offer increased by $5/t. Local traders said metallurgical plants agreed to buy non-Russian pig iron at $420-425/t CFR. Steel production in Italy in January-February increased by 1.2%, to 3.5 million tons.
