Ukrainian exporters increased their commercial cast iron supply to foreign markets by nearly one third from July to September. On the one hand, this is the result of increased supply by the largest commercial cast iron producer at the end of spring maintenance activities, on the other hand, it is a response to the surge in global market activity. However, the situation is expected to be deteriorate in the fourth quarter.
Ukraine exported 9.625 million tons cast iron in the third quarter, a month on month increase of 27%. Ukran pig iron supplier sales focus on the United States accounting for about 57% of the total sales. The output in this direction increased by 63% to 55.24 million tons. The sharp increase was the result of a surge in trading activity at the end of May and early June, when Ukrainian producers showed flexibility in the general price competition ,so that they were able to sign a large number of contracts.
In other areas, the situation is not so good. The supply to Europe increased slightly (5%, about 2.82 million tons), mainly due to the flow within the group. Due to increased competition and weak scrap market, the supply to Turkey almost halved to 470000 tons. Sales to other regions are still small, with only a small amount of goods destined to Peru, Canada and China.
According to the data , Ukraine exported 2.4 million stewed pig iron in nine months (a year-on-year increase of 6%). However, market participants expect that this extreme momentum will not continue in the fourth quarter. First, global consumption activity was low in the first half of autumn. In addition, the supply is limited, and most factories face deteriorating logistics problems of coking coal and pulverized coal in September, which have not been completely solved. In this case, some blast furnace facilities were put on standby due to coke shortage.
Post time: Oct-22-2021