It is observed that the most important market players in the global pig iron markets were the Far East buyers in last week. While the HMS I/II 80:20 scrap were sold at $295/mt CFR Far East (China and Vietnam), the pig iron price levels have been at $310-320/mt C&F same region. It is observed that the pig iron prices were in general showed slight uptrend and the Chinese traders were active in the market.
SteelOrbis has been informed that the most active pig iron seller group in the Dar East pig iorn market is currently Russian producers, whereas their price levels are at $270-280/mt FOB and also it is heard that an important Russian pig iron producer has filled its order books for July shipments and it has nearly filled its August production order books.
Global pig iron prices have focused on Asia since the European buyers are hesitating to buy due to the upcoming summer holidays.
In Germany, one of the important automotive producer in Europe, due to the fact that the capacities of the foundries that work for this sector has registered improvement, traders are looking to the August-September period (after holidays) more positively.
In the Brazilian market, the pig iron producers' price levels are still at $270/mt FOB southern Brazil. However, business from this region to the Far East market (almost the only buyer market for Brazil for the time being) is getting hard as the freight rates are currently at upward trend. On the other hand, Brazilian pig iron producers cannot be able to decrease their offer prices since the Brazilian real is too strong.
Having continued to buy scrap in the last week, Turkish finished steel producers gave firm bids for pig iron; however, the Russian pig iron producers did not respond positive in particular. Due to the fact that the scrap prices are on an uptrend, the fact that the deal prices are at the levels of $260/mt CFR Turkey for ex-US HMS I/II 80:20 scrap and due to the fact that the Russian pig iron producers have concluded sales deals to the Far East with considerably tonnages, these pig iron producers did not decrease their offer levels to the Turkish market.
Meanwhile, with the Turkish government has announced that the tax reduction will continue in the country, the general steel market and the foundries that work with this sector in Turkey has started to feel positive for the near future. Additionally, it is heard that there have been an increase in the amount of offers of the foundries work for the tractor industry as a result of the fact that one of the important tractor market players' business has gained some momentum. The general pig iron price levels in the local Turkish market are at $300-350/mt + VAT and the price levels of hematite pig iron are at $380-400/mt + VAT.
In the global pig iron market, an improvement in general activity is being expected after the end of the summer holidays of Europe. It seems that the global pig iron market can look to the future more positively if the confidence in the global steel market continues and grows.