Turkish pig iron market makes a quiet start to current week

In the Turkish domestic pig iron market, local producer Kardemir has kept its price levels unchanged with its latest price list dated May 27. Accordingly, Kardemir's price of H1 pig iron has remained at $600/mt plus VAT, its H2 price is still at $590/mt plus VAT, while its price of C1 pig iron is at $575/mt plus VAT, and its price for C2 pig iron is unchanged at $565/mt plus VAT.
 
Some Turkish foundries continue to make purchases from local trading houses, while some other foundries are seeking to balance their cast iron parts productions with local scrap bookings, in the context of high trending pig iron prices. In the meantime, following the rapid price hike in the Turkish finished steel market (rebar, wire rod) which has also helped push scrap prices upwards, Turkish foundries are now worried about whether these increases will be echoed in pig iron sales prices.
 
This week, ex-Ukraine pig iron offers, which have remained at $545-550/mt, continue to attract Turkish buyers' attention.
 
SteelOrbis has learned that, with the approach of the summer season, the number of orders from manufacturers of agricultural machinery parts have increased, while delivery periods in the automotive supply industry which were at six months have now regressed to three months or shorter, due to the volatility observed in pig iron sales prices. On the other hand, following the spread of the political turmoil in Syria, cast iron parts exports to this country from Turkey have slowed down, while there has been an increase in the number of orders received by Turkish foundries from buyers in Iraq and Iran.
 
It is reported that last week's ex-South Africa nodular pig iron offers to Turkey at $690-700/mt CIF are still valid, while negotiations continue for nodular pig iron sales from central Europe to Turkey. The reaction of Turkish meltshops and foundries to current pig iron sales prices will determine whether or not pig iron prices move up.