Turkish foundries turn to CIS for pig iron supplies

Monday, 16 May 2011 17:19:11 (GMT+3)   |  
       

In the Turkish domestic pig iron market, local producer Kardemir has kept its price levels unchanged since its latest price list dated May 4. Accordingly, Kardemir's price of H1 pig iron has remained at $580/mt plus VAT, its H2 price is still at $570/mt plus VAT, while its price of C1 pig iron is at $555/mt plus VAT, and its price for C2 pig iron is unchanged at $545/mt plus VAT.
 
On the other hand, after Turkish integrated steelmaker Isdemir, a subsidiary of Erdemir, stopped its commercial pig iron sales at the end of April, ex-CIS pig iron offers have gained more importance in the Turkish market. Currently, mainstream ex-Russia pig iron offers stand at $540-550/mt FOB, while offers from Ukraine are at $515-525/mt FOB, both for June shipments. Although there are slightly higher offers, buyers do not consider these higher offers to be reasonable.
 
According to the statistics released by the Turkish Statistical Institute (TUIK), Turkey's pig iron imports in March this year climbed by 382 percent year on year to 58,709 mt, while its imports in the first quarter of this year totaled 262,195 mt, up by 386 percent as compared to the corresponding period of the previous year. In March, Ukraine's pig iron exports to Turkey came to 36,984 mt, while Russian exports of pig iron to Turkey were at 17,836 mt. Considering that domestic pig iron supply has shrunk with Isdemir halting its commercial sales, the pig iron flow from the CIS to Turkey may increase in the third quarter of this year.
 
According to the information provided by the Turkish Foundrymen's Association, in April this year domestic nodular pig iron average prices in Turkey decreased by TRY 12/mt to TRY 996/mt ($627/mt), while hematite pig iron prices rose slightly by TRY 6/mt to TRY 972/mt ($612/mt).
 
As mentioned in our previous report, ex-South Africa pig iron offers to Turkey had increased to $690-700/mt CIF for shipments in June, with a rise of $40/mt, and Turkish buyers were approaching these offers with caution. However, it is reported that this week this price range has started to find acceptance among some foundries.

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