At the start of the last week of October, in the Turkish domestic market, H1 pig iron offers remained in the price range of $485-495/mt, while C1 offers stand at $460-470/mt; both are ex-works and exclude VAT. Iron ore price increases in China and the slight upward tendency in scrap prices led pig iron suppliers worldwide to begin the current week with some price increases.
This week, an increase has been observed in ex-Russian pig iron export offers. Brazilian suppliers are also reported to have increased their prices. The rise in Brazil seems to result from the high volume transactions from Brazil to the US last week.
Meanwhile, the Turkish foundries continue to report an abundance of orders as regards exports, while their sales to the European automotive industry, as well as to the agricultural sector, have gained momentum.
Following Russia, Ukraine and Brazil, India currently seems to be playing a more important role in the international pig iron and ferroalloy markets. It is heard that some international trading companies and meltshops see the Indian market as a strong alternative source of pig iron and ferroalloy supplies.
On the nodular pig iron side, prices, which has been trending sideways for a long time, are expected to acquire clearer shape in November.
We will continue to monitor developments in the pig iron market at the current time when some Turkish foundries are reported to be making investments in capacity expansions for 2011.