Prices for ex-Brazil basic pig iron (BPI) have posted some further increases after latest deals done to the US. Even though the latest gains have been limited, most sellers are still optimistic.
Regarding Ex-Brazil BPI with 0.15 percent of phosphorus content, one, possibly two, deals were heard done to the US market at $510-515/mt CFR, translating to $480-485/mt FOB. Though some Brazilian sources claim that they did not see confirmed deals after the two transactions at $480-481.5/mt FOB done two weeks back, “$485/mt FOB is the current workable price, while offers can be even higher,” one of the sellers said. Another producer has also confirmed that $485/mt FOB is the current tradable level. There is a rumour in the market about a sale at $490/mt FOB for July shipment, however, this has been denied by most Brazil-based sources as “too high, desirable level.”
“We see demand from the US, yes, this is the main support, and also because of European demand,” one of sellers said. In spite of there being no new deals confirmed to Europe, negotiations from the Brazil side have been heard at $530/mt CFR this week, up by $5/mt from the previous deal done in mid-April.
There have been concerns of BPI supply and a lack of high-phosphorus BPI availability from Ukraine after news this week that ArcelorMittal Kryvyi Rih suspended operations of one of its two blast furnaces, two sintering machines, and one ore enrichment plant, citing disruptions in logistics services provided by Ukrainian railway operator JSC Ukrzaliznytsia. The company warned that if the situation does not improve, it may be forced to stop its second blast furnace.
As for BPI with 0.10 percent of phosphorus content, a contract from Brazil has been done at almost $500/mt FOB. This price translates to $520-525/mt CFR for the US market. There have been no offers for low-phosphorus BPI from Ukraine in the spot market lately and the previous booking was done at $510/mt CFR, but in the second half of April, when prices were lower.
The SteelOrbis reference price for ex-Brazil BPI with 0.15 percent of phosphorus content has been settled at $480-490/mt FOB, up by $4.50/mt on average over the week. The reference price of import BPI in the US (including high- and low-phosphorus material) has been settled at $512-522/mt CFR, also up by $4.50/mt.
