It is observed that the biggest Russian pig iron producers are currently monitoring the market in wait-and-see mode since the leading Russian and Ukrainian pig iron producers have filled their order books for August production and have almost filled them for September production. While ex-Ukraine pig iron prices are at $280-300/mt FOB, the general price range of ex-Russia pig iron is $305-310/mt FOB.
In Asia, pig iron price levels are still strong mostly since demand from Chinese buyers has remained strong. As of late July, the price levels acceptable to Chinese buyers were in the range of $345-350/mt CFR China. Due to the good demand from Asia, Indian pig iron producers have returned to the market with export tenders, and Indian export price levels for pig iron have increased to $313/mt FOB in these tenders (some of which have been completed by international trading firms).
In Brazil, pig iron producers have increased their production capacity utilization rates to 30 percent as demand for material from their market has increased due to buying activity from the US and China. In the latest deals concluded from southern Brazil, producers' export price levels have increased to $305/mt FOB.
Due to the holiday season in Europe, no great activity is observed in this region. Still, with some slight rise in demand seen in the European markets, a slightly optimistic mood is observed with regard to the post-holiday period.
Meanwhile, with scrap prices maintaining their strength in Turkey, Russian producers' pig iron offer prices to this country have not been met with acceptance in the past week. Besides, it is heard that Turkish producers have bought ex-Ukraine basic pig iron (BPI) at $285-290/mt CFR.
In the local Turkish market, foundries' purchase price levels are at $310-350/mt + VAT for BPI and at $360-400/mt + VAT for foundry grade pig iron. Foundries that cast high-weight components have registered an increase in orders. Also, some signs of improvement (though slight) have started to be seen in foundries that supply the automotive industry.
In conclusion, the expectation that global pig iron prices will not soften in the upcoming period is supported by three factors - markets which have not purchased for a long time may buy pig iron again in the global market, new deals may be seen after the holidays and demand from Asia remains strong.