The Turkish domestic pig iron market is seeking to follow the increases in imported scrap prices. This can be seen in Turkish steelmaker Kardemir's local pig iron sales prices, which were last week increased to $555/mt + VAT for H1, $545/mt + VAT for H2, $530/mt + VAT for C1 and $520/mt + VAT for C2. While buyers are still not sure how long the price increases will last, they continue to conclude purchases for their urgent needs at these levels.
As regards foreign trade, it is reported that last week's export offer levels have been maintained this week. Although suppliers would like to see price increases reflected in buyers' purchase prices, export offers are following a flat trend since buyers have been slow to show interest in the increased prices. Ex-Russia pig iron export offers continue to stand at $470-480/mt FOB for January shipments. While bookings from Italy have intensified in November, in line with the increased activity in the local raw material market, European buyers' transactions are expected to slow down due to the approaching Christmas and New Year holidays. In Russia, some pig iron suppliers are reported to have reduced their production rates.
In the US, the increase in the number of buyers' price inquiries is significantly above the world average. In Brazil, problems still prevail in relation to shipments from local ports. Trading companies have not yet been informed about the date of shipment for pending pig iron deliveries. This causes international trading companies and buyers to look for alternative pig iron sources, such as Russia and Ukraine.
On the nodular pig iron side, import offers given to Turkey have increased to $560-570/mt CIF for January shipments. It is also reported that Turkish buyers are leaning towards these price levels.