Limited supply to support exporters' positions

摘要

Galloping uptrends in the global markets for raw materials and steel products caused CIS export pig iron prices to surge in late November and December. Given limited supply, the material added almost 25% in price month-on-month. In mid-December, business activity slowed down significantly in virtually all sales outlets for CIS pig iron. Meanwhile, the market uncertainty is mounting. On the one hand, crude steel production in the key outlets indicates at least steady demand for the raw material. On the other one, extremely high quotes achieved in the latest contracts are forcing consumers to be cautious. Moreover, several traders that have booked pig iron batches in the past few months may resell them, also to other markets. Besides, external factors contribute to the turbulence in the segment – aggravation of the epidemiological situation in Europe as well as mixed expectations regarding influence of China's lifting of a ban on steel scrap imports on the pig iron segment and growing fears of a rapid deflation of the price bubble.