Scrap transaction prices in the Turkish domestic market have continued to slide down owing to price decreases in the global steel markets. However, pig iron suppliers have not let their prices soften and so the number of pig iron transactions in the local Turkish market, where demand is already poor, has remained very limited. While scrap deals can be concluded in Turkey at the range of $350-355/mt CFR, Turkish buyers claim that pig iron offers at $400/mt CFR are too high.
In addition, the ongoing downtrend in iron ore prices has also supported expectations for a decline in pig iron quotations.
According to worldsteel data, global pig iron production has been increasing on year-on-year basis this year, while decreases in Turkey's pig iron import activity have reflected weaker demand for pig iron in the local Turkish market.