On January 25, SteelOrbis reported US import offers for basic steelmaking pig iron at $310-320/mt FOB Brazilian port (northern region).
At the end of January, deal prices for northern region pig iron are being heard at $295-300/mt FOB (plus $10-15/mt freight) while southern region pig iron prices are being heard at $265-270/mt FOB (plus $35-38/mt freight). These prices translate to approximately $305-315/mt CFR New Orleans for late March/early April shipments, according to sources.
The gap between offer prices and recent deals heard in the northern region reflects a difference of $15/mt from the bottom of the range and $20/mt from the top of the range.
In CFR terms, these prices translate to a loss of $15-25/mt from the last $330/mt CFR New Orleans deal.
Offer prices from the northern region have moved down $10/mt and are presently at $300-310/mt FOB Brazil, but according to a source close to SteelOrbis, “US demand for basic pig iron continues weak. It will fluctuate with US domestic scrap. I believe the second half of 2017 may see a surge in interest, but for now northern deals are expected to continue at less than $300/mt FOB and southern deals at less than $270/mt FOB.”