merchant pig iron price is at $600 per tonne!!

Hey Guys

Merchant Pig Iron Prices as at 12th of August = $600 per tonne as per CHinese Steel Price Website (please see below)

If their cash cost is between $280-$320 per tonne their
Gross Profit will sit at between $320 and 280 per tonne Annaul Production is 4Cast @ 1Mtpa

Dont you think a Chinese investment firm would be happy with a Gross Profit of $280,000,000 - $320,000,000 each year?

I think YES.............GO FWL!!!

While the Russians have increased the price of the MPI to
$650 per tonne!
News
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Nascent rebound in HRC market - 12 Aug, 2010
According to information made available in Tokyo, there are signs of a nascent rebound from a hitherto predominant USD 600 per tonne CNF in the HR coil market for deals of supplies into distant areas such as the Middle East and Latin America. Various steelmakers in Russia and Europe have shown moves to increase offer prices by nearly USD 30 per tonne for the past few weeks in their deals of HR coil exports to distant areas for September 2010 shipments.

In the HR coil market for shipments to distant areas, China's steelmakers first took the export offensive with low prices in the April-June quarter. Then, Russia's and Ukraine's steelmakers took similar actions as if to follow what the Chinese rivals did. Of late, even cases have emerged of HR coil offers from South Korea at a price level of USD 600 per tonne CNF or USD 560 per tonne FOB. The offers are reported as ones of POSCO's production. It is uncertain why the company has opted to conduct HR coil exports at low prices. Still, it is not that the company is directly engaged in the deals, but that a certain metal merchant is concerned with the low priced offers, market sources believe.

Until now, though, reports have petered out on HR coil offers to distant areas at low prices, compared with an earlier spate of the reports. The cause is seen as a pervasive shift of positive sales policies among Chinese and Russian steelmakers whereby their offers have decreased.

The Middle East enters Ramadan from the middle of next week. In Saudi Arabia, there are no signs of deals falling off on HR coil imports even during Ramadan. In neighboring countries such as the UAE, however, deals on HR coil imports are expected to come under the influence of Ramadan, combined with the summer holidays.

Under the existing circumstances, negotiations to begin shortly on HR coil supplies into the Middle East relate to September to October 2010 shipments after Ramadan. There is no doubt that the world's various integrated steelmakers have fallen into the red or are about to fall into the red as a whole, affected by high costs of raw materials. But among them, it is understood that the Russian steelmakers have found it possible to promote HR coil exports at low prices thanks to a depreciation of the ruble.

With an appreciation of the ruble at present, the Russian steelmakers have increased offer prices by USD 30 to USD 50 per tonne to USD 630 to USD 650 per tonne C&F in their deals of HR coil exports to distant areas. Likewise, the European steelmakers have pulled up their offer prices by nearly USD 30 to a level of USD 630 per tonne CNF as offers before they take summer holidays.

In the Middle East, various customers for HR coils from abroad have continued to mark time for two months so far. Therefore, it is likely that they will find themselves in dwindled stocks of HR coils after Ramadan, which could bring them into an enlarged procurement of HR coils each in post Ramadan deals like what has occurred in the past.

http://steelprices-china.com/news/index/2010/08/12/MTgxOTk%3D/Nascent_rebound_in_HRC_market.html