Will expectations in Turkish pig iron market materialize?

This week's improvement in prices in the Turkish scrap market has created expectations of upticks in the local pig iron market. In addition, increases of $5/mt in the iron ore market in the current week have also contributed to these expectations. However, no upticks have been seen so far in pig iron transaction levels. Ex-Ukraine pig iron offers are varying in the range of $390-395/mt FOB, though it is possible to see deals concluded by as much as $5/mt below these levels.
 
SteelOrbis has learned from market sources that pig iron demand in the Middle East has remained on the strong side and plenty of pig iron transactions have been concluded in the region, particularly in Egypt, in the last couple of weeks. With the influence of the approach of the year-end, the pig iron markets are not expected to be that lively in the second half of December. The New Year holidays and the harsh freezing weather conditions in the CIS will likely impact the pig iron markets negatively in the next two to three months.