The main Russian pig iron exporter Tulachermet has announced that its current monthly pig iron production capacity is about 180,000 metric, approximately 70,000 metric tons lower than its normal average monthly production capacity. The downsizing of the producer's output is due to repair works being carried out at one of its shaft furnaces. The works are scheduled to be completed by the end of June of the current year.
This temporary halt of production at Tulachermet means a shortage of about 50,000 metric tons of pig iron available for export (the company exports 90 percent of its production), and therefore may cause export prices to rise. In addition, the increase of pig iron consumption in the Russian domestic market - in the first quarter of the current year domestic pig iron consumption increased by nine percent year on year - will only support the price rise for pig iron export deliveries.