The rebound in CIS merchant pig iron export prices has continued this week, albeit at a slower pace with fewer sales. But there were more enquiries from Mediterranean buyers, as Turkish scrap import prices reached new highs this week, market sources tell Kallanish.

Turkey’s pig iron import market has switched on with a variety of bids ranging from $310-330/tonne cfr and above, one seller says. Turkish interest in importing pig iron follows in the wake of a billet buying spree, also on the back of scrap increases. One trader estimates August-arrival bookings of scrap will be equal to June and July volumes, contrary to earlier expectations. Pig iron is used more by flat steel producers, whose return to the market emphasises a strong domestic flat products trend.

The Italian market is not actively sourcing pig iron. Long-contract based sales are going ahead at an equivalent of $320/t fob Black Sea, but in volumes smaller than is typical for this time of year. Meanwhile, US buyers remain on the fence, after booking a Ukrainian lot at $330/t cfr Nola over ten days ago. One sale was heard at slightly below $340/t cfr, as part of a formula-based long-term contract, but details could not be obtained at press time.

China is somewhat quieter in its bookings, but one cargo was allegedly sold at just under $360/t cfr – $320/t fob Black Sea – by a Russian supplier. Traders are this week offering at $360/t cfr and being countered with $355/t bids. Many cite $360/t cfr as the next working level for CIS pig iron in China.

All producers claim their allocations are relatively small, and hence they are poised to keep prices increasing. Kallanish assessed Black Sea pig iron exports at $315-325/t fob on Wednesday.