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For the south Brazil export pig iron assessment, Fastmarkets proposes to change the payment terms from payment on-delivery to partial prepayment upon readiness.
For the Commonwealth of Independent States fob Baltic Sea pig-iron export assessment, Fastmarkets proposes to specify the maximum cargo volume for exported pig iron in this region at 20,000 tonnes, whereas there is currently no maximum cargo size.
Cargoes of up to 20,000 tonnes are frequently shipped from the Baltic Sea to foundries in western and northern Europe, while more rarely cargoes above 50,000 tonnes have been shipped to the United States – mainly to steelmakers – at significantly lower prices per tonne.
Fastmarkets also proposes to expand the chemical composition specification of the Italy pig-iron import price assessment to include phosphorous content.
High-phosphorous pig iron, which is shipped from the south of Brazil, commands a lower price than low-phosphorus pig iron due to its quality and lower demand in the global market.
In 2018, Italy imported 1.7 million tonnes of pig iron, according to the International Steel Statistics Bureau (ISSB). Russia and Ukraine, who supply low-phosphorus pig iron, together supplied 1.44 million tonnes and held 85% of the Italian pig iron import market.
Brazil shipped only 144,000 tonnes, ISSB reported, which makes up 7% of Italian pig iron market, Fastmarkets estimates. Yet only part of these tonnages included basic pig iron because Italy imports foundry and nodular pig iron as well, market sources said.
Additionally, Fastmarkets is proposing that the incoterm of the Italy import pig iron price assessment should change from cif to cfr to match the majority of cargoes in the market.
Current specification: Assessment: Brazil exports pig iron $ per tonne fob Vitória/Rio Brazil Phosphorus: More than 0.1% Quantity: 20,000-70,000 tonnes Location: fob Brazil Timing: Spot Unit: USD/tonne Payment terms: Payment upon delivery Publication: Weekly. Friday, 2-3 pm London time
Proposed specification: Assessment: Brazil exports pig iron $ per tonne fob Vitória/Rio Brazil Phosphorous: More than 0.1% Quantity: 20,000-70,000 tonnes Location: fob Brazil Timing: Spot Unit: USD/tonne Payment terms: Partial prepayments upon readiness Publication: Weekly. Friday, 2-3 pm London time
Current specification: Assessment: CIS pig iron exports $/tonne fob Baltic Sea Dimensions: 10-15kg Manganese: <0.09% Quantity: Minimum 5,000 tonnes Location: fob Baltic Sea Timing: 4-6 weeks Unit: USD/tonne Payment terms: Payment upon delivery Publication: Weekly. Thursday, by 3pm London time
Proposed specification: Assessment: CIS pig iron exports $/tonne fob Baltic Sea Dimensions: 10-15kg Manganese: <0.09% Quantity: 5,000-20,000 tonnes Location: fob Baltic Sea Timing: 4-6 weeks Unit: USD/tonne Payment terms: Payment upon delivery Publication: Weekly. Thursday, by 3pm London time
Current specification: Assessment: EU pig iron imports $ per tonne cif Italy Dimensions: 10-15kg Manganese: >0.1% Quantity: Minimum 5,000 tonnes Location: cif Italy Timing: 4-8 weeks Unit: USD/tonne Payment terms: Against FCR or B/L Publication: Weekly. Thursday, by 3pm London time
Proposed specification: Assessment: EU pig iron imports $ per tonne cfr Italy Dimensions: 10-15kg Manganese: >0.1% Phosphorous: Less than or equal to 0.1% Quantity: Minimum 5,000 tonnes Location: cfr Italy Timing: 4-8 weeks Unit: USD/tonne Payment terms: Against FCR or B/L Publication: Weekly. Thursday, by 3pm London time
The consultation period for these proposed amendments will end one month from the date of this pricing notice on Monday June 10, with changes taking place, subject to market feedback, from Tuesday June 11.
To provide feedback on the amendments outlined above, or if you would like to provide price information by becoming a data submitter to Fastmarkets’ global pig iron price assessments, please contact Marina Shulga by email at: pricing@fastmarkets.com. Please add the subject heading FAO: Marina Shulga, re: global pig iron prices.
To see all Fastmarkets’ pricing methodology and specification documents go to www.metalbulletin.com/prices/pricing-methodology