In the Turkish pig iron market, local steelmaker Kardemir announced its new domestic prices on December 21. As SteelOrbis has already reported, Kardemir's local sales price of H1 has reached $565/mt + VAT, its local sales price of H1 stands at $555/mt + VAT, its price of C1 stands at $540/mt + VAT, while its sales price of C2 has climbed up to $530/mt VAT. At the start of the current week, these price levels are still valid.
In the Turkish domestic market, as the month of December draws to a close, foundries are maintaining a wait-and-see stance. Once pig iron inventory levels become clear, foundries are expected to accelerate their purchases for the New Year. Inquiries in the current week are therefore for January shipments.
The strong trend observed in scrap offers, particularly to Turkey, also has a determining influence on ex-CIS pig iron export offers. SteelOrbis has leaned that, last week, ex-Ukraine pig iron export offers for deliveries at the end of January or in early February increased to $485-490/mt FOB, followed by an increase in ex-Brazil pig iron export offers which reached $475-490/mt FOB.
Since most steel producers in Europe and in the US are on holiday, pig iron suppliers are now focusing on alternative markets, such as the Far East. In the meantime, the strong trend observed in Middle East finished steel prices has also resulted in increased pig iron sales by international traders to this region.