Brazilian basic pig iron (BPI) suppliers have been offering at higher prices for March shipments amid an expected further gradual rise for scrap pricing in the US, and CBAM cost advantage in Europe, market insiders told SteelOrbis this week. And, while prices might be staged for an increase, many buyers have been staying silent, not ready for this, they said.
Most offers from Brazil for BPI with 0.15 percent of phosphorus content have been reported at $425-430/mt FOB this week, up from the latest deal reported at $415/mt FOB ($440/mt CFR, New Orleans, La.) last week.
“Rumors about three deals done at $435/mt FOB [to the EU] have not been confirmed, although prices would certainly be at $430/mt FOB or higher in time,” a Europe-based source said. Another European insider reported that “mills should cool down again even with low CBAM costs.”
After an earlier reported deal for ex-Ukraine BPI done at $440/mt CFR to the US earlier in January, there has been a lack of offers from Ukraine, insiders said, as producers have “no big volume allocation before March shipments and an expected price increase.”
A few Brazilian suppliers confirmed that there have been no sales at higher levels, even though targets are up to $430/mt FOB, but next deals are expected to be also to the US market, while European buyers will need more time to place new orders.
Although expectations for higher US February scrap remain supportive for BPI, the latest somewhat conservative month-on-month increase for February US scrap, could make US mills more reluctant to easily absorb too sharp of a hike in BPI prices on next deals.
At last report, US Midwest busheling scrap is expected to trade sideways to $10-15/gt ($10-15/mt) higher for February, after a rise of $20/gt in January.
The SteelOrbis reference price for ex-Brazil BPI has been at $415-420/mt FOB this week, up by $5/mt versus one week prior, considering higher seller’s targets. The import BPI in the US has been settled at $440-450/mt CFR, inching up by $2.5/mt on average over the week, market insiders told SteelOrbis.
