The Turkish domestic pig iron market has been seeking to follow the hikes in scrap prices. In the local Turkish market, H1 pig iron offers have remained in the price range of $545-555/mt + VAT. After following a rising trend during November, the pig iron price increases in Turkey now seem to have slowed down a bit in early December, due to the preparations for the New Year. Buyers are currently reluctant to conclude new purchases and so are unwilling to accept price hikes.
In Europe, as winter conditions become more difficult and with the approach of the Christmas/New Year holidays which will start on December 20, buyers are also reluctant to conclude new bookings. Nevertheless, in Italy, pig iron transactions were reported to have accelerated in November.
While ex-Ukraine pig iron export offers stand in the price range of $450-460/mt FOB, Russian pig iron offers remain standing at the level of $470-480/mt FOB. Iron ore and coking coal price increases in the international markets, including the Chinese domestic market, are pushing up pig iron production costs.
On the foundry side, casting orders are reported to have increased as regards the agricultural machinery industry, rather than in the automotive sector.
On the other hand, Brazilian producers, facing difficulties as regards deliveries due to some problems at their country's ports, are preparing to reflect cost increases in their pig iron export offers.