Global iron ore prices have increased to $100/mt, while scrap prices have also been rising, providing support for the upward movement of pig iron prices.
At the beginning of this week, CIS pig iron producers increased their offers due to Black Sea freight costs rising in July and the increases in raw material prices in the latest deals. Ex-Ukraine pig iron offers have increased by $5/mt compared to last week to $380-385/mt FOB. Meanwhile, Ukrainian pig iron offers to Turkey have increased by $5-10/mt week on week and are currently at $410/mt CIF. No new transactions have been heard at the price levels in question, while the most recent ex-Ukraine pig iron deals to Turkey were concluded in the range of $395-397/mt CIF. Additionally, Ukrainian pig iron offers to Italy have remained unchanged at $395-400/mt CIF, for August shipments. An ex-Russia pig iron deal for Italy had been heard at $403-405/mt CIF in previous weeks.
Buyers prefer to maintain a wait-and-see stance before starting to buy at the new price levels, while it will be clearer in the coming days if the new price levels will gain acceptance in the market.