Pig iron buyers in global market await CIS producers’ return from holiday

In the Turkish domestic pig iron market, local producer Kardemir has kept its prices unchanged since December 15. Accordingly, Kardemir's price of H1 pig iron still stands at $575/mt plus VAT, its H2 price is at $565/mt plus VAT, while its price of C1 pig iron stands at $540/mt plus VAT, and its price for C2 pig iron is at $530/mt plus VAT.
 
Due to the still continuing Christmas holiday in CIS countries, pig iron producers from this region are not expected to return to the market with their new offers until the second week of January. Before the holiday, Ukrainian pig iron offers to the Turkish market were standing at $460-465/mt CFR, while Russian pig iron offers to Turkey were at $470-475/mt CFR, both for late January shipments. The CIS pig iron producers are likely to increase their prices next week in their new offers for February production.
 
On the other hand, the increase in flat steel demand and prices in the US domestic market may boost pig iron sales to the US market in the coming period. In the meantime, iron ore prices in the international markets are expected to become more clear in the coming weeks and it is thought that the raw material markets may see increased activity with the strengthening of finished steel demand.