In the past week, with its new price list issued on July 13, Turkish producer Kardemir has increased its domestic pig iron prices by $15/mt as compared to its previous price levels dated July 7. Accordingly, Kardemir's price of H1 pig iron has increased to $625/mt plus VAT, its H2 price has reached $615/mt plus VAT, while its price of C1 pig iron is now at $590/mt plus VAT, and its price for C2 pig iron is at $580/mt plus VAT. Since the company had lately reduced its pig iron prices, this price hike has surprised many in the market.
While, ex-Russia pig iron offers stand at $530-535/mt FOB for shipments in August, these offers are expected to be reshaped, in line with interest coming from buyers. The approach of the summer holidays in August for European producers , also with the alarming Italian economy, after crisis seen in Greece, Spain and Portugal, caused pig iron sales to Europe to slow down. SteelOrbis has learned that for this reason, German pig iron producers have intensified their negotiations with Turkish foundries, rather than foundries in France and Italy.
Last week, it is heard that Ukrainian pig iron export offers were at $520-525/mt FOB for shipments in August, while price idea of Turkish buyers has remained at $550-555/mt CFR in general.
Many trading company and foundry in Turkey is expecting pig iron export offers to follow a flat trend for a while, due to rarefying pig iron orders because of the approach of Ramadan in Turkey and in the Middle East and the summer holidays in Europe.