This week, CIS pig iron offers to Turkey have risen as expected by about $20/mt as compared to late December, with the latest pig iron booking from Ukraine to Turkey being concluded at $420-430/mt CFR. Thus, CIS pig iron prices for Turkey have now increased by $60/mt in the past three months, as Ukrainian pig iron transaction prices for Turkey were at $365-370/mt CFR in October 2012.
Ukrainian pig iron prices are not expected to drop below $420/mt CFR Turkey in the short term, provided raw material and finished steel prices do not see any significant decline. Turkish mills' import rebar prices have remained unchanged this week, while import iron ore prices have decreased by about $10/mt in China this week. If iron ore prices continue their downtrend in the coming week, pig iron buyers may increase their inquiries, demanding lower prices.