With the effect of the soaring exchange rate in the Brazilian market, production is only just about able to meet labor and raw material costs, thus making expectations for an increase in prices inevitable. Although Brazilian export offers for BPI, which exceeded the level of $525/mt FOB two weeks ago, stood at $510/mt FOB last week in general, there were also offers heard which had risen to a range of $530-540/mt FOB. As regards the Brazilian domestic market, the ex-factory price of high manganese content foundry pig iron stood in a range of $735-740/mt due to the limited availability of foundry pig iron supplies against the background of strong demand.
In the Indian market, export offers for BPI, which had risen from $525/mt FOB to the level of $535-545/mt FOB three weeks ago, saw a slight softening in the following week. Looking at the current market situation, high manganese content foundry pig iron, which has started to resume its normal uptrend, is being offered at the level of $740/mt ex-works this week. During the current period, when various foundries have halted their production due to the extraordinary rise in iron ore and coke prices, these high prices in the Indian market are being taken for granted.
While the effect of the rise in raw material prices is more or less the same in the global markets, taking into account its effect on the production process, it is foreseen that the strong trend of the steel markets - whose manufacturing activities are dependent on each other - will continue. Therefore, the offers for pig iron as well as for other raw materials are expected to continue soaring right up to the summer season.