In the Turkish domestic pig iron market, local producer Kardemir announced on October 28 that it is keeping its domestic pig iron prices unchanged. Accordingly, Kardemir's price of H1 pig iron still stands at $555/mt plus VAT, its H2 price is at $545/mt plus VAT, while its price of C1 pig iron has trended sideways at $520/mt plus VAT, and its price for C2 pig iron is still at $510/mt plus VAT.
Witnessing sluggish finished steel demand in both their domestic and export markets, Turkish meltshops are currently adopting a cautious approach as regards new pig iron bookings. Two weeks ago, the ex-Ukraine pig iron transaction price to Turkey had declined to $455-460/mt CIF and last week no new transaction was heard. It is reported that Ukrainian pig iron offers to Turkey still stand at this price range in general; however, lower offers are heard to be emerging in the market. Considering the approach of the Feast of Sacrifice holiday in the second week of November, it is thought that Turkish pig iron buyers may postpone their bookings until after the holiday.
It is thought that Russian pig iron suppliers may offer more competitive prices to Turkish steel producers, who have been meeting their pig iron needs from Ukraine for a while now. But for the moment, Russian pig iron offers to Turkey are standing at $465-470/mt CIF and it is thought that Turkish buyers will unlikely show interest in offers above $450-460/mt CFR.
As for nodular pig iron offers given to the Turkish market, SteelOrbis has learned that offers are now standing at $565-575/mt CIF for arrivals in December, declining from $595-605/mt CIF for arrivals in November. Thus, it seems that the price softening in basic pig iron is also reflected in nodular pig iron offers.
It is reported that the US buyers have been adopting a wait-and-see stance for some time now, while Brazilian pig iron offers stand at $450-455/mt FOB for shipments in November.
Future trends in international finished steel demand are expected to affect Turkish mills' decisions on their next pig iron bookings.