Early predictions before the New Year regarding ex-CIS pig iron offers pointed to price increases in January. After the holiday, Turkish mills' scrap purchase prices have increased and iron ore quotations in China have moved up by $20/mt as compared to the pre-holiday period, and so these factors have paved the way for pig iron prices to register upward movements. Even though Ukrainian mills have not yet given offers to the local Turkish market, the new prices from Ukraine to Turkey are expected to increase by $20-30/mt as compared to the pre-holiday price levels. The latest pig iron offers from Ukraine were standing at $400/mt CFR in late December.
Meanwhile, this week Russian pig iron offers to Turkey have been announced at $450/mt CFR, though buyers have found these offers to be on the high side.
Pig iron suppliers in the CIS have given priority to the European markets, particularly aiming to conclude business in Italy rather than in Turkey, as they can sell materials at higher prices. Ex-CIS pig iron offer levels will likely gain clarity by next week in line with the inquiries of Turkish mills and traders.