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Expected to stabilize the international pig iron market in August causes upside limited

First introduce the production areas. In June, 2013 Global blast furnace pig iron and DRI production compared with May to fell, while average daily production has also declined.

In June, the 40 global major pig iron producing countries produced a total of 96,063,000 tons of pig iron, 4% lower than the ring, an increase of 3.6%. The average daily production was 3.2 million tons, an increase of 3.3%, decreased slightly by 0.8%. The cumulative production was 583.7 million tons of pig iron from January to June, an increase of 4.1%.

In June, global DRI production was 4.637 million tons, 5.1% lower than the ring, representing a decrease of 3.2%. The cumulative production was 28,839,000 tons of DRI, representing a decrease of 3.8%.

Next we take a look at the export side. Brazil’s pig iron exports fell 55.9% to 10 million tons in May, lower than the 63.6% and become the lowest level since August in 2010.

Russia has a large pig iron export volume fluctuations that the pig iron exports declined 41.4% year on year in April to 10.6 million tons, decline in the rate to reach 80.9% and become the lowest level since October in 2011.

Then look at price movements. As the international scrap market remains strong and theU.S.pig iron import prices rise, international pig iron market rose slightly in July. Because theUnited Statesimports of pig iron prices pull, Brazilian pig iron export prices from $ 375 / ton rose to $ 380/ ton (FOB). The CIS pig iron manufacturers also successfully raise prices, export prices increasing from the beginning month of the $ 415 / ton to $ 418 / ton (FOB, Baltic Sea), where exports from theBlack Seaport of pig iron prices rose significantly, increasing from $ 375 / ton (FOB) to $ 388 / ton (FOB). Since August global steel market has entered the off-season demand and some steel mills have begun shutdowns, it is expected that in August the international pig iron market is generally stable, continue to raise little space.

In addition, the global coking coal market has experienced five consecutive months of decline, stabilized in July. Because of weak demand and increased supply, international coking coal spot prices under pressure, first half of July the international coking coal market still continued to show a downward trend. However, due to the Chinese steel market improves demand and end-users replenish stocks of coal, international coking coal prices stabilize since the second half of July, volume raising slightly. The buyer¡¯s market sentiment turned positive that the coking coal market is expected to rise slightly in August.

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