Pig iron prices are expected to move down in the Turkish domestic market in line with the declines in scrap transaction prices and the downward trend in steel product prices. Meanwhile, following a sharp fall in March, iron ore prices have indicated upward movement in late March and April, and so pig iron producers do not see any reason to reduce their quotations. Pig iron mills indicate that profit margins for pig iron are quite low, considering current iron ore and coal costs. In the meantime, a Russia-based pig iron producer has announced an overhaul for its blast furnace, taking advantage of the current market conditions, which will result in a sharp reduction in its June production levels.
On the other hand, Turkish pig iron buyers have not yet seen the price declines that they were expecting. Ex-CIS pig iron offers to Turkey can still be found at $410-420/mt CFR, while the difference between current offer levels and buyers' price ideas have contributed to weaker activity in the pig iron market. Turkish pig iron buyers state that only offers in the range of $400-405/mt CFR would make them consider purchasing at the moment.
According to the official data, Turkey's pig iron imports in February this year totaled 131,977 mt, increasing significantly both month on month and year on year.