In the Turkish domestic pig iron market, local producer Kardemir has not changed its domestic pig iron sales prices in the past week. Accordingly, Kardemir's price of H1 pig iron still stands at $595/mt plus VAT, its H2 price is at $585/mt plus VAT, while its price of C1 pig iron has trended sideways at $560/mt plus VAT, and its price for C2 pig iron is still at $550/mt plus VAT.
Following the price softening seen in Turkish mills' import scrap transactions, a correction is now also expected for pig iron prices. In the meantime, the negative influence of fluctuations in the euro/dollar exchange rate on Turkey's finished steel exports is causing Turkish mills to remain cautious as regards new pig iron purchases.
As for Turkey's pig iron imports, last week Russian pig iron export offers to Turkey were at $520/mt CFR, while ex-Ukraine pig iron offers were standing at $490-495/mt FOB. In line with the softening observed in Turkish producers' finished steel export offers, Ukrainian pig iron offers for Turkey are also showing some softening. Following Turkish mills' latest pig iron bookings at $500-510/mt CFR, new offers are reportedly far below this price range. Because of their competitiveness, it is thought that Ukrainian offers will continue to attract more attention than Russian offers for a while. However, considering the softening in scrap prices, many Turkish mills have postponed their pig iron purchases, hoping that pig iron import offers may also soften.
According to the figures released by the Turkish Foundrymen's Association (TUDOKSAD), in September this year average nodular pig iron prices in Turkey were at TRY 1,202/mt, while the highest price was TRY 1,350/mt. As for hematite pig iron, the average price was at TRY 1,210/mt and the highest price was TRY 1,260/mt. Finally, the average price of basic big iron was at TRY 1,120/mt and the highest price was TRY 1,270/mt.
As for iron ore, the main input material for pig iron, international iron ore prices are expected to be reshaped this week as Chinese market players are back from the National Day holiday in China (October 1-7).