Due to the fact that the raw material prices are still increasing on global basis and also due to the fact that the general demand is responding positive to these increases, pig iron producers in the international markets have revised their prices compared to the levels of early August.
Looking at CIS, it is observed that there is lack of material as the production is fulfilled until late October in Ukraine and this situation is preventing the export markets from reaching real price ranges. It is said that the price idea for a few available material is currently at the range of $305-310/mt minimum. Due to the fact that the leading producers in Russia have fulfilled their order books for September, price softening seems unnecessary in this region. While taking account of lively demand from Asia an the rising market, their price levels for export markets have been set at $350/mt FOB as of past week.
After an Indian producers' export tender has been accepted at $331/mt FOB in the last week, it is said that the Indian producers' new price idea is at $335/mt FOB.
While the producers in Brasil have previously increased their production capacities to 35-40 percent, they have increased their export offers to $330/mt FOB southern Brasil from previous transaction level of $315/mt FOB.
After the pig iron deals to Asia concluded at $362-365/mt CFR Asia in the previous week, pig iron transaction prices to this region have increased to $380-385/mt CFR after the scrap offers to this region has registered uptrend.
No great activity is being observed in Europe since the holidays are still there. It is wondered whether the European traders wil be able to have their new price levels accepted in their markets after they return to the market.
Due to the increases of $20-25/mt done by Turkish pig iron producers in the past week, prices are now at $340-390/mt + VAT for basic pig iron (BPI) and at $415-440/mt + VAT for foundry grade pig iron. Some uptrend in orders is being observer in the foundries that work for white goods and some automotive sub-industries. Foundries that work for mostly European markets are having difficulties in seeing their near future since holidays in Europe.
In the near future, if the pig iron demand will maintain its strength globally, no great downtrend in price levels is being expected due to the tightness of supply.