With the influence of higher scrap transaction prices in the Turkish domestic market, CIS pig iron producers have increased their prices by $10/mt for Turkey. However, the lack of strength of pig iron demand amid the weakness of the Turkish steel markets has resulted in little interest in increased import prices. Nevertheless, as purchasing activity generally indicates a recovery when prices move up, pig iron demand in Turkey is expected to improve.
Meanwhile, Ukrainian pig iron export offers are currently varying in the range of $380-385/mt FOB Blacksea. Strong pig iron demand, particularly in Italy and in the US, has been encouraging CIS mills to keep their prices at high levels. Besides, if the firm trend of the scrap market and the ongoing increases in the Chinese iron ore market continue in the coming days, there will be limited room for pig iron prices to decline.
In the chart below, Turkey's pig iron import sources for the first five months of the current year can be seen.
