In the Turkish domestic pig iron market, local producer Kardemir has kept its pig iron prices unchanged since July 13, as the domestic demand has remained sluggish and buyers are still not sure about concluding new purchases. Accordingly, Kardemir's price of H1 pig iron still stands at $625/mt plus VAT, its H2 price is at $615/mt plus VAT, while its price of C1 pig iron remains at $590/mt plus VAT, and its price for C2 pig iron is at $580/mt plus VAT. Kardemir's pig iron sales for October deliveries are expected to begin soon.
On the other hand, ex-CIS pig iron offers are still following a sideways trend. Last week, ex-Ukraine pig iron offers were still at $510-515/mt FOB for September shipments, while ex-Russia pig iron offers continued to stand at $525-530/mt FOB, also for September shipments. SteelOrbis has learned that for real buyers slightly lower offers are also available in the market. Turkish steel producers and foundries continue to show interest in more competitive Ukrainian offers. Last week, the Turkish central bank made one of its most significant interventions in the US dollar/Turkish lira exchange rate, in order to maintain the exchange rate in a certain range. Thus, Turkish pig iron suppliers are expected to assess pig iron import offers considering the trends in the dollar/Turkish lira exchange rate.
In the Italian market, pig iron demand is weak since most foundries are closed due to the summer holidays. This week, some Italian steel market players have reportedly returned to the market. However, Italian foundries are predicted to return to the market for new purchases about mid-September, and only then a realistic price level is foreseen to emerge.
Unable to predict the future trends in the finished steel market, most of international pig iron producers prefer to adopt a wait-and-see stance as regards concluding new iron ore bookings, while pig iron buyers in international markets are still reluctant on new purchases as the month of August draws to a close.