US lands first Chinese pig iron cargo since 2010

The US market has imported its first Chinese pig iron cargo since 2010 with approximately 70,500 mt landing in Baton Rouge, Louisiana, on June 7, according to data from Panjiva, a division of S&P Global Market Intelligence.

This is the first arrival of a Chinese cargo of pig iron since 56,880 mt landed in Baton Rouge on June 21, 2010, according to Panjiva and US Census Bureau data.

Traditional sources of US pig iron imports were significantly disrupted following Russia's invasion of Ukraine in late February. The two countries accounted for 62% of the more than 6 million mt of imports to the US in 2021.

The invasion left a scramble by US steelmakers to secure the raw material from Brazil, the other traditional supplier, and others. As the supply shock gripped the market, prices into the US spiked, opening the door for other suppliers to take advantage of the surging levels.

The weekly Platts US import pig iron assessment hit a high of $1,030/mt on a CIF New Orleans basis by the end of March compared to $540/mt at the beginning of 2022.

Market participants were actively discussing the Chinese cargo being booked at an industry event in March but details remained sparse. In addition, there have been no more indications from market sources around additional cargoes arriving to the US as prices have subsided, reaching $800/mt CIF New Orleans on June 10.

Prices appear to be coming under further pressure, with indications of a recent deal from Brazil to the US heard concluded at $590/mt on an FOB basis.

So far, the US has imported 1.85 million mt of pig iron in 2022, according to Panjiva data through June 10. Brazil accounted for 38% of those imports while Russia remained the second largest supplier at 33%. Ukraine's market share dropped to 18% but at least two deals were recently heard concluded from Ukraine destined to the US. China and India each accounted for 4% of total US pig iron imports.