With the anticipations of a softening in scrap prices and the upward movement in iron ore quotations registered early this week, market players are wondering how the price trend for the pig iron market will develop. Although a decline is expected in the Turkish pig iron market, suppliers in the CIS are not expected to reduce their pig iron quotations that much if iron ore prices increase further in China.
The latest pig iron offers to Turkey from Ukraine, Turkey's major import source for pig iron, have been standing at $365-370/mt CFR, while Turkish buyers are seeking lower levels. If Ukrainian suppliers come with offers lower than $350/mt FOB, it is believed that transactions could be concluded at around $360/mt CFR Turkey. Deal levels for pig iron in late September were ranging at $370-380/mt CFR.
Meanwhile, according to the statistics provided by the Turkish Statistical Institute (TUIK), in August this year Turkey's pig iron imports amounted to 89,360 metric tons, while Turkey's top pig iron source in the given month was Ukraine with 65,825 mt, accounting for 73 percent of total pig iron import figure.