In the Turkish pig iron market, domestic producer Kardemir maintained its previous price levels in the new price list it announced on May 4, 2011 for hematite and steelmaking basic pig iron.
Accordingly, Kardemir's H1 pig iron price remained at $580/mt, its H2 pig iron price is still at $570/mt, with C1 pig iron at $555/mt and C2 pig iron at $545/mt, ex-works. All prices are exclusive of VAT.
According to the first quarter figures published by the World Steel Association (worldsteel), global blast pig iron production in Q1 2011 increased by six percent over Q1 2010, reaching 271 million mt. The increase of production in March compared to February is also interesting. When we look at the production figures on country basis, Japan, an important pig iron exporter, may see a decrease in its production levels in the second quarter due to the recent catastrophe it suffered.
In the EU countries, the euro/US dollar exchange rate is putting pressure on the exports of European foundries, and so their April production numbers may see a slight decrease.
In Turkey, for March a production increase of 70,000 mt is observed. Domestic steel producer Isdemir based in the Iskenderun region of Turkey has stopped sales of pig iron as of April, and accordingly a drop in production figures may be seen in Turkey in the coming period.
Country (x 1,000 mt) | Jan | Feb | Mar |
Total - European Union (27) | 8,200 | 7,596 | 8,478 |
631 | 608 | 678 | |
Total - Other Europe | 826 | 803 | 877 |
Total - C.I.S. | 6,802 | 6,220 | 6,690 |
Total - Middle East (Iran) | 233 | 210 | 240 |
China | 52,163 | 50,513 | 54,747 |
India | 3,100 | 2,940 | 3,260 |
Japan | 7,352 | 6,574 | 6,781 |
Total - Asia | 66,926 | 64,050 | 69,218 |
TOTAL | 90,513 | 85,916 | 93,335 |
Source: worldsteel
Against last week's ex-Russia pig iron export offers at $540-550/mt FOB for June shipments, European buyers are still adopting a wait-and-see stance. Since yesterday, May 9, was Victory Day holiday both in Russia and Ukraine, local pig iron suppliers in these regions are expected to return to the market today.
Also last week, ex-South Africa nodular pig iron offers given to the Turkish market increased by $40/mt to $690-700/mt CIF. However, buyers are cautious towards these increased offers.
On the other hand, lately Turkish foundries have begun working on monthly order basis, instead of quarterly or six-month order basis, in their production for the automotive and machinery industries. This causes them to remain cautious as regards new pig iron offers.