According to market sources, ex-CIS pig iron offers to Turkey have remained stable since last week at $270-290/mt CFR. However, Turkish buyers have considered these offers to be on the high side, making firm bids at $265-275/mt CFR. Meanwhile, a Turkish steel producer has been heard to conclude an ex-Russia pig iron deal at $270-280/mt CFR for prompt sale in the past week. As of today, March 5, offers of ex-Australia 62 percent Fe content iron ore to China have decreased to $59.75/mt CFR, which has come as a big surprise to the market. This situation is expected to provide support for the firm bids of Turkish producers. However, CIS-based pig iron producers have maintained their strong stance on their offers, since import scrap prices have moved on an uptrend in the latest deals at the end of last week.
Meanwhile, CIS-based pig iron producers are unwilling to cut their export offers, as they have filled their order books as desired following pig iron deals concluded to the US and Italy. Last month, one big Ukrainian pig iron producer halted production at its Donetsk mill due to the conflict in the east of the country. Also, a Russian pig iron producer is planning to suspend its production in May, due to planned maintenance works at its blast furnace. In these circumstances, pig iron supplies from the CIS region are expected to decrease in the coming period, providing support for prices.