In the Turkish domestic pig iron market, on January 14 local steelmaker Kardemir increased its pig iron list prices by $15/mt as compared to its previous price list dated January 11. Meanwhile, according to Orbis Steel Index, scrap prices in the Turkish domestic market last week saw an increase of 0.08 percent week on week. Thus, in the Turkish domestic market, Kardemir's H1 grade pig iron price is now standing at $620-635/mt + VAT, while its H2 grade pig iron price has settled at $610-620/mt, its C1 grade pig iron price is at $595-605/mt + VAT, while its C2 grade pig iron price is at $585-595/mt.
Following the closure of various foundries in Europe, this year Turkish foundries are planning to expand their production capacity. In the Turkish domestic market, small scale foundries are opting to meet their needs from the domestic market.
International trading companies which had pushed up their pig iron inventory levels ahead of the holiday are now causing different prices levels to be heard in pig iron offers given to the Turkish market. SteelOrbis has been informed that last week Ukrainian origin pig iron was being offered to the Turkish market via international trading companies at $540-550/mt CFR for February shipments.
Meanwhile, after returning from the New Year holiday, Russian producers' pig iron offers are now standing at $530-540/mt FOB for February shipments. Turkish steelmakers, who are becoming increasingly cautious as regards raw material bookings, are also seen to show caution towards this price level.
Following the floods that hit both Australia and Brazil, supplies of key input materials for pig iron production, i.e., coking coal and iron ore, have fallen on the short side, placing increased pressure on pig iron suppliers to keep their prices at certain levels. However, in accordance with general market dynamics, the attitude of buyers will be definitive in whether offer levels maintain their strength.