Prices for basic pig iron (BPI) from Brazil have increased this week with one deal rumored to have been done. The main driver of the uptrend has been the stronger scrap market and rising flat steel prices in the US.
In the benchmark import scrap market in the US, after the recent increase in local scrap prices, the mood in the BPI segment has also improved further. Brazilian suppliers have been insisting on higher offers, at $425/mt FOB for 0.15 percent phosphorus content material, up by $5/mt over the past week. Moreover, one deal at $420/mt FOB for approximately 30,000 mt of PH 0.15 percent has been heard in the market, but could not be confirmed from the US side by the time of publication. Another deal for lower phosphorus content of 0.10 percent has been rumored at $425/mt FOB. The previous transaction has been reported at $415/mt FOB a week ago. “As for me, we are not there [at $420/mt FOB] in deals yet, but they [Brazilian suppliers] are aiming higher,” a trader said. The price of $420/mt FOB is translating to $450-455/mt CFR New Orleans, but one US-based source said that the only buyer that would make sense is currently declining offers at $450/mt CFR. However, “It is very possible… it seems that the market is looking at scrap increases and the recent steel price increases in the US. The rest of the world still not for Brazilian pig iron suppliers,” an international trader said. US Northeast and Ohio Valley scrap prices have settled for November, at up $20/gt for HMS, P&S and shredded, and up $30/gt for busheling scrap, according to SteelOrbis’ data.
There has been also talk about the fresh ex-Ukraine pig iron deal at $450/mt CFR to the US, but this has been denied by a few sources and it is said to have been done 10 days ago and not in the spot market. The previous transaction for Ukrainian material was done at $445/mt CFR around two weeks ago.
The SteelOrbis reference price for ex-Brazil 0.15 percent PH BPI has settled at $415-425/mt FOB, taking into account the last rumored deals and offers, up by $5/mt over the past week on average.