The European Union’s quota for Russian pig iron imports has been exhausted earlier than expected. Initially set at 1.14 million tonnes for the period ending December 31, 2024, the quota is now projected to be fully utilized by September. This rapid depletion is attributed to a surge in shipments from Russia, driven by the zero export duty ending on August 31 and logistical challenges within Russia.
As of August 21, only 300,542 tonnes of the quota remained, with 45,085 tonnes awaiting allocation. The EU is now expected to limit pig iron usage or shift to alternative sources, such as Brazil, Ukraine, or India. The next quota, set at 700,000 tonnes, will be available from January 1, 2025, to December 31, 2025. From 2026, Russian pig iron will be banned in the EU due to sanctions over the war in Ukraine.
The market anticipates a rise in pig iron prices in the EU from September, coinciding with the recovery of market activity. Current prices are around $420-430 per tonne in Italy and $380-390 per tonne in Turkey. Russian pig iron prices are assessed at $370-405 per tonne FOB, while Brazil holds firm at $440 per tonne FOB.
