In addition to the decreases of $10/mt in the Chinese iron ore market during January, the sharp declines in import scrap transaction prices in Turkey have put downward pressure on pig iron prices in the country, while the price levels in the latest pig iron deals appear to confirm the downward trend.
Having offered pig iron to Turkey at $415-420/mt CFR in previous weeks, ex-Ukraine pig iron deals in Turkey have been concluded at $410/mt after Turkish buyers gave lower firm bids to suppliers and also given the influence of the softening observed in scrap prices. Meanwhile, it is heard that some Turkish buyers have given firm bids to Ukrainian pig iron suppliers below the level of $400/mt CFR.
On the other hand, pig iron suppliers indicate that it is difficult to give offers lower than current levels due to the build-up of ice at ports and higher freight costs. However, despite this, some suppliers may lower their offers further to offset long waiting times at ports. Pig iron prices are foreseen to soften by $5-10/mt as of the coming week, though decent demand levels in the Italian market, which is the most important export destination for CIS pig iron suppliers, may help prices to maintain their strength.