The market was primarily supported by limited availability of Russian material. A stronger ruble, elevated freight rates, and lower domestic steel production continued to restrict export volumes. According to industry data, Russian pig iron production declined by 7% during the first four months of 2026, while crude steel output fell by 9.9%, reducing the amount of material available for overseas markets.
Supply constraints became particularly evident in early May. Turkish buyers reported that shipments from Ural Steel to the port of Novorossiysk were reduced by 40,000-70,000 tonnes, leaving export volumes at around 80,000 tonnes. As a result, the benchmark price for Russian pig iron increased by $5/t to $372.5/t FOB. Small-volume cargoes to Türkiye were reported around $405/t CFR, equivalent to approximately $380/t FOB.
Despite restricted supply, demand from Türkiye remained relatively weak. The country's long steel market continued to face challenges from rising energy costs and shrinking producer margins, limiting raw material purchasing activity. However, some improvement in buying interest was observed ahead of holiday periods as steelmakers and traders replenished finished product inventories.
During the middle of the month, Russian pig iron prices moved higher again, reaching $370-380/t FOB Black Sea. Small-volume transactions were concluded at $375-380/t FOB, while larger cargoes were sold at $370-375/t FOB. A deal for higher-grade Russian pig iron was also reported at $425/t FOB, highlighting continued premiums for superior quality material.
By the end of May, the market stabilized as buying activity slowed. Suppliers continued to offer material at around $375/t FOB, but demand was insufficient to support further price increases. Egyptian buyers were targeting prices of $390-400/t CFR, equivalent to approximately $360-365/t FOB, levels considered too low by Russian exporters. As a result, no significant transactions were reported in that market.
Turkish Imports Remain Strong
Türkiye continued to be the key destination for Russian pig iron exports. According to data from the Turkish Statistical Institute (TUIK), pig iron imports reached 221,000 tonnes in March, up 31.2% compared with February, although still 5.9% lower year-on-year.
During the first quarter of 2026, Türkiye imported 615,700 tonnes of pig iron, representing a 37.9% increase compared with the same period last year. Russia remained the dominant supplier, delivering 553,000 tonnes during January-March, an increase of 87.2% year-on-year. India supplied an additional 51,000 tonnes during the period.
Global Market Overview
Outside the Black Sea region, pig iron prices also moved upward during May. In the United States, Brazilian pig iron prices increased by $15-25/t to $490-500/t FOB. The rise was mainly driven by tight supply, while demand remained moderate.
In Europe, Brazilian pig iron was offered at approximately $525/t CFR. However, buying interest remained limited, with most consumers indicating workable levels closer to $510/t CFR. This gap between seller expectations and buyer bids continued to restrict trading activity in the European market.
Overall, the global pig iron market remained supported by supply-side constraints during May. Nevertheless, weakening demand in several key consuming regions prevented prices from rising more aggressively, leading to a more balanced market environment toward the end of the month.
Comments
No comment yet.