In the Turkish domestic pig iron market, local producer Kardemir announced on October 21 that it has kept its domestic pig iron prices unchanged. Accordingly, Kardemir's price of H1 pig iron still stands at $555/mt plus VAT, its H2 price is at $545/mt plus VAT, while its price of C1 pig iron has trended sideways at $520/mt plus VAT, and its price for C2 pig iron is still at $510/mt plus VAT.
Confronting difficulties in their finished steel sales to export markets, Turkish steel producers are behaving cautiously as regards new pig iron purchases. Last week, some Turkish mills have concluded pig iron bookings from Ukraine in order to satisfy their daily needs at $455-460/mt CIF. On the other hand, some other producers are currently delaying their pig iron purchases in order to observe the future market trends.
It is thought that Russian pig iron suppliers may offer more competitive prices to Turkish steel producers, who have been meeting their pig iron needs from Ukraine for a while. Thus, it is anticipated that Russian pig iron offers to Turkey may test the price level of $470-480/mt CIF this week. Nevertheless, it is considered that Turkish pig iron buyers may continue to show interest in ex-Ukraine offers for some time more.
The wait-and-see stance adopted by the US buyers in their finished steel imports is resulting in extended period for the assessment of ex-Brazil pig iron offers. Last week, Brazilian pig iron export offers were standing at $455-465/mt FOB. But this week it is thought that these offers may see a revision against the contraction in international pig iron demand.
It is expected that ex-CIS pig iron offers may be revised again in the coming days due to difficulties observed in international finished steel demand, as well as the financial situation in the European Union economy.