Brazilian basic pig iron (BPI) exporters are no longer willing to follow the downward price trend and a number of them have been considering production cuts. Some offers have also been heard at higher levels in a sign that exporters are trying to reverse the market trend.
A consortium of producers in Brazil have been voicing the target price for the next round of sales at $420-430/mt FOB for BPI with 0.15 percent phosphorus content, while the previous deal was signed at $410/mt FOB (or $414/mt FOB including finance expenses) a week ago. “Producers are really considering stopping production as times are tough,” a Brazil-based source said.
On the other side, US importers have been reluctant to discuss any higher prices and their target level has been heard at $400/mt FOB already. “Brazilians may increase offers just to stop them falling that fast, but I don’t think higher prices will be accepted any time soon,” a trader said.
The SteelOrbis reference price for import BPI in the US has remained stable at $435-450/mt CFR, with the higher end representing low-phosphorus BPI, for which allocation is limited at the moment.