According to sources close to SteelOrbis, the US steel industry revival has increased demand for prime grade scrap usage for finished steel goods production. Due to the high domestic scrap prices being paid for prime grades such as busheling and bundles as a result of limited supplies from industrial sources, demand in the US for ex-Brazil basic steelmaking pig iron has increased. Sources expect an increase in US deals for the purchase of Brazilian origin pig iron as Brazil pig iron producers make more summer production loads available to the market.
Sources report basic steelmaking pig iron import prices to the US at $380-395/mt CFR US Gulf port and New Orleans port. This price range correlates with the FOB prices reported by SteelOrbis on March 30, indicating prices have not changed since then. According to a source, offer prices for basic pig iron remain stable at $370-380/mt FOB Northern Brazil port and $365-370/mt FOB Rio, but may firm up on the higher side of the range or even slightly shift up depending upon the competition expected from US mills during upcoming negotiations. A separate source noted that prices may yet remain stable, as CIS pig iron offers have been heard declining in FOB terms and may help limit price increase efforts by Brazilian producers.