The increased activity in the Turkish scrap market and the softening in scrap transaction price levels have not yet been reflected in the Turkish pig iron market.
Pig iron prices in Turkey have maintained their strength amid shortages of supply, while the weak demand situation means that any price reductions would have limited impact. Turkish steelmakers had previously expected that transaction levels for pig iron would soften in line with the weakening in scrap transaction prices in the Turkish domestic market and the increase in Turkish scrap booking activity.
Pig iron offers from Russian and Ukrainian suppliers to Turkey are varying at $410-430/mt CFR. The latest pig iron deals in the local Turkish market have been concluded at $420/mt CFR from Ukraine in the past weeks, while deals are expected to be concluded during this month $10-15/mt below the level in question.
Turkey's total pig iron imports of 1,376,583 mt in 2012 according to source countries can be seen below:
