Pig iron market in Jiangxi province is dragged down by the falling steel price. Pig iron market price has dropped by CNY 50 per tonne compared to early month.
Currently, leading steelmakers have pressed down the purchase price to CNY 3,110-3,120 per tonne for L10 pig iron. Part of steelmakers will even consider to reduce the orders in July and mainly consume the stockpiles. Meanwhile, one Jiangxi-located steelmaker turns to Xinjiang province to buy cheaper pig iron (the price there is around CNY 2,550 per tonne, added with CNY 500 per tonne of transportation fee).
Current price spread between pig iron and rebar is down to CNY 750 per tonne. Considering the downward tendency of iron an coke price, SteelHome forecast that pig iron price will continue to inch down.