In the European pig iron market, due to the tightened pig iron supply and the hesitation of most producers to raise their outputs given the reduction in international demand, the inactivity associated with the holiday period has already begun to be observed. In general, pig iron producers globally have filled their order books for December and January and have started offering to the export markets for February.
As one of the most important pig iron suppliers, Russia's pig iron export price levels have been standing in a range of $330-340/mt FOB. Although this price range is more acceptable in Europe, the prices in question are at slightly higher levels for the Turkish market compared to import scrap prices in Turkey. It is heard that there have been some pig iron deals from Russia to Europe at the abovementioned prices. However, the US and Far East markets are in general still lively pig iron buyer markets.
Meanwhile, ex-Ukraine pig iron offers for export are currently at $320-330/mt FOB.
On the other hand, in the Brazilian market, which is generally a strong exporter to the US, it is mentioned that pig iron export offers are at $330-340/mt FOB from northern Brazil for February shipments, with demand for pig iron from northern Brazil seeming weaker compared to demand for pig iron from southern Brazil. As for southern Brazil, a pig iron export market level of close to $350/mt is heard. However, local market sales rather than export sales have been more frequent at this price level.
It is mentioned that the pig iron production rate in Brazil is standing at 35-40 percent in general. In addition to the global uptrend in iron ore and coking coal prices, Brazilian pig iron producers are also increasing their export prices under the influence of rising charcoal prices in Brazil.
It is heard that there has been some slowdown in ex-Far East pig iron demand. It is observed that there is some activity in the automotive sub-industries in the pre-holiday period; however, it is expected that Turkish foundries' sales negotiations with Europe and the US will likely continue after the holidays. It is observed that the business of Turkish foundries (which produce big pieces in their foundries and do business to Europe) has slowed down a bit due to the upcoming holidays; on the other hand, local trader prices in Turkey have increased slightly in line with the uptrend in import pig iron prices.