Import pig iron prices in Turkey expected to increase

Import pig iron prices in the Turkish domestic market are expected to increase in line with the recent upward price trend of scrap. Before the Feast of Sacrifice holiday (October 24-28) the latest pig iron deals from Ukraine to Turkey had been concluded at $365-380/mt CFR. After the holiday, however, it has been observed that the Turkish pig iron market has slowed down, with transaction and offer volumes declining remarkably.
 
However, expectations in the market indicate that pig iron deals are just around the corner and prices will likely trend upward amid the recent increase in scrap transaction prices. Meanwhile, Turkish buyers have already started to make price inquires and prospective deals will likely be concluded higher than the level of $400/mt CFR.
 
On the other hand, iron ore prices, which are another important factor influencing pig iron offers, have trended sideways in China this week. Steel and iron ore prices in the Chinese domestic market are expected to fluctuate downward, while it is not yet clear how such anticipated decreases would affect pig iron and scrap offer prices, which are on an upward trend.