Assofermet released an official statement today, expressing views and commentary regarding the approaching holidays and the ferro alloy and pig iron markets.
According to Assofermet, it seems to have become normal to slow down the pace and hold the breath hoping to have a better view of the situation at the end of August. There is caution certainly, but also many doubts, as nowadays long-range forecasts are difficult for everyone.
Mills' pig iron stock remains consistently low, but in parallel there is a lively research of alternative materials. Inventory levels are stable at the foundries, that are seeking the cover a couple of months, though they fell behind as well in recent weeks.
Concerning the price of finery pig iron, Assofermet underlined that in the past months the up and down movement was limited to $15-20/mt, and has effectively created a certain stability. In recent weeks, the slowdown in the pig iron purchasing activity in the US and in the Turkish market has pushed to a downward correction of prices. Internationally speaking, the transaction activity remains quiet. Even the prices of hematite pig iron and ductile cast iron, though slightly revised downwards, have remained largely stable.
Moreover, Assofermet does not underestimate the financial moment that is creating strong concerns in financial e non-financial markets.
In the world of ferro-alloys, there has been on one hand a decline in purchases, on the other a consequent increased availability of material; both factors have helped to reduce prices. According to Assofermet, bulk ferro-alloys are the most affected, but also noble ferro-alloys are experiencing the same phenomenon. Purchases are meant to cover orders in progress, while there is no programming, not even in the short term.