According to sources close to SteelOrbis, import offers for pig iron have remained relatively stable through the month in the midst of an uncertain market. While export prices on Chinese finished steel dropped significantly, coking coal prices broke through the $300/mt CFR levels after Cyclone Debbie affected supply in Australia. Additionally, as Turkey delayed scrap purchases on weak finished steel demand, US domestic pig iron prices increased. Through the market uncertainty and regional variations, Brazilian pig iron sellers chose to minimize offer fluctuations to the US. Additionally, Brazil prices were reportedly buoyed on high US demand and a shortage of charcoal for pig iron production as a result of heavy rains.
While Brazil origin basic steelmaking pig iron offers were heard this week at $360/mt CFR Italy, US offers were higher at $390-400/mt CFR US New Orleans (NOLA). Unlike Europe, the US presently has a shortage of prime grade scrap that has resulted in a premium above shredded scrap of $70-80/mt in April; the spread is expected to potentially increase to $100/mt in the upcoming May buy-cycle.
According to sources, basic steelmaking pig iron offers to the US are presently at $380-390/mt FOB Northern Brazil ports and $365-370/mt FOB Southern Brazil ports.
In comparison with March 30 offers that were reported at $370-380/mt FOB Northern Brazil port and $365-370/mt FOB Southern Brazil, prices have increased by $10/mt from North Brazil and remained stable from South Brazil.