Even though
scrap transaction price levels in
Turkey have declined by $15-20/mt over the past month, the rate of decrease for
pig iron prices has been slower. Transaction levels for ex-
US scrap in
Turkey have softened to $365/mt CFR, while the price ideas of Turkish mills and traders for
pig iron are at $380-390/mt CFR. However, these levels seem unrealistic for
pig iron suppliers at the moment. CIS
pig iron suppliers have cut their offers by a maximum of $5-10/mt over the past month and ex-CIS
pig iron offers are currently available for
Turkey at $385-390/mt FOB. Meanwhile, it has been reported that CIS producers'
pig iron sales to other markets are performing better than their sales to
Turkey.
Pig iron prices are also expected to slide down in the coming days, at a time when prices of
iron ore,
scrap, semi-finished steel and finished steel are on a declining trend. However,
pig iron mills state that the difference between their production costs and
pig iron sales prices is almost nonexistent and so further price cuts for
pig iron would mean the absence of any profit margin in sales. Demand is unlikely to register any notable improvement during the summer season in the raw material markets, while
pig iron prices are anticipated to hover at around $380-400/mt FOB Black Sea during the next three months.