The recovery in export prices for pig iron in the CIS continued this week, albeit at a slower pace with lower sales. But there have been more inquiries from Mediterranean buyers as Turkish scrap metal import prices hit new highs this week, market sources say.
According to one seller, the iron import market in Turkey has entered various offers at prices ranging from USD 310-330 per tonne and higher. Turkish interest in the import of pig iron follows an increase in demand for billets, as well as an increase in the price of scrap metal. One trader believes that scrap orders in August will equal June and July volumes, contrary to previous expectations. Pig iron is used to a greater extent by flat products manufacturers, whose return to the market underlines a strong trend in the flat product market.
The Italian market is not actively supplying pig iron. Long-term sales are equivalent to $ 320 /tonne in the Black Sea, but in less volumes than is typical for this time of year. Meanwhile, American buyers ordered a Ukrainian lot ten days ago at $ 330 /ton. One sale was heard at just under $ 340 /tonne as part of a formula-based long-term contract, but details could not be obtained in print.
China is somewhat quieter in its orders, but the Russian supplier sold one shipment at just under $ 360 /t, or $ 320 /t over the Black Sea. This week traders are offering at $ 360 /t CFR. Many cite the $ 360 /t CFR as the next working level for pig iron from LPG to China.
All manufacturers claim that their distribution is relatively small and, therefore, they are willing to support the rise in prices.