Scrap prices, having trended sideways since the beginning of May, have softened by $1-2/mt with the ex-US and ex-Baltic transactions concluded on Wednesday, May 28, while prices of scrap have started to show signs of further softening. In the meantime, iron ore prices have been trending down for a while now and have decreased below the psychological threshold of $100/mt. Given the situation in the raw material markets, buyers have been trying to put pressure on
pig iron suppliers due to the softening trends of scrap and iron ore prices. However,
pig iron suppliers have been resisting, not making any cuts to their prices so far.
Ex-
Ukraine pig iron prices to the export markets have remained unchanged since last week at $375-385/mt FOB, while ex-
Ukraine pig iron offers to
Turkey are at $400-410/mt CFR. Some Turkish steel producers state that these
pig iron prices are on the high side considering the softening observed in raw material prices and so they are targeting a price range of $390-395/mt CFR.
The good demand for
pig iron in the Italian market supports suppliers' efforts to keep their prices unchanged despite pressure from Turkish buyers. Additionally, serious political tensions still exist in
Ukraine and so market sources say that freight rates may see an upward revision, which could prevent any drop in
pig iron prices below current levels.