It is reported that pig iron market goes on dull operation in Shandong with weak transactions. Mainstream price stands at CNY 2,300 per tonne to CNY 2,320 per tonne for steelmaking pig iron or even lower. Laiwu Steel offers purchase price at CNY 2,330 per tonne deliver-to-mill while Jinan Steel still suspend buying. Shiheng Special Steel posts the price at CNY 2,300 per tonne deliver to mill. Some steelmakers in eastern regions have been impacted by imported resources and some southern ones have restricted or suspended purchasing.
Casting pig iron market falls. As steelmaking pig iron price remains at a low level, the price gap with casting pig iron widens, hence many iron makers shift to casting pig iron and ductile pig iron since they can still gain profits. But the demand fails to swell accordingly. Casting pig iron price begins to slide after a short stabilization. 18# casting pig iron price stands at some CNY 2,800 per tonne to CNY 2,850 per tonne.
Given the price gap between rebar and steelmaking pig iron, pig iron price is blessed with some space for upward movement. But price is determined by market demand. Wide purchase suspension by steelmaker means demand still stay on a low track. On the other hand, prices of iron ore and coke have stabilized and showed an uptrend while production costs for pig iron remain high. More iron makers will halt productions or turn to the productions of casting pig iron and ductile pig iron if steelmaking pig iron price drops further.
As a result, in a short term pig iron market will continue current trend. Future market depends on downstream demand.
