Over the past week, trading activity for ex-CIS pig iron has remained quiet, while no new price offers were given and ex-CIS pig iron prices have remained unchanged at $380-385/mt FOB. CIS-based pig iron producers did not give any offers to the US market as they were waiting for US domestic scrap prices to settle. Early this week, US domestic scrap prices for the September buy cycle declined by $20-25/mt in the Midwest and by $11-16/mt on the East Coast. While scrap purchases in the US are expected to slow down in September, CIS-based pig iron producers will likely revise their offers to the US downwards, though the decline in their pig iron offer prices is expected to be lower than that seen in scrap prices.
Meanwhile, pig iron buyers in Turkey have also stayed away from the market and the slight increase in their purchases of import scrap was not enough to give the market a boost. Weak domestic finished steel demand in Turkey and the slowdown of export sales are preventing the recovery of Turkish mills’ demand for pig iron.