Improved pig iron demand may result in price increases in Turkey

Factors like the ongoing shortage of supply from CIS pig iron mills and improved demand in the Turkish domestic market have created expectations for pig iron price increases in Turkey.
 
Although scrap transaction prices in Turkey had declined in the first half of February, import pig iron prices had followed a stable trend over the same period.
 
Ukrainian pig iron offers can be found at $390-395/mt FOB Black Sea, while Russian export offers are ranging at $415-420/mt FOB Black Sea. Meanwhile, the latest pig iron deal in Turkey from Ukraine has been transacted at $410-415/mt CFR, while an ex-Russia deal has been concluded at $435-440/mt CFR in Turkey.
 
Although iron ore prices have been on the soft side in the past two weeks in China, the rising trend for both import scrap prices and domestic rebar prices in Turkey have strengthened the possibility of a price increase for pig iron in the Turkish market.