The lack of allocation of ex-Brazil basic pig iron (BPI) caused by firm demand from Chinese customers and consequent active trading with them has led to a further increase in offer prices from the main Brazilian suppliers. The additional support is provided by stronger scrap prices in Turkey and by firm iron ore prices.
As a result, following the recent deal made at the beginning of the current week at $322/mt FOB to China, Brazilian suppliers have increased their offers to $330-335/mt FOB. “After the last booking, it is quiet here [in Brazil]. However, we are not in a hurry,” a Brazilian source commented. The majority of offers are voiced for November shipment.