Brazilian basic pig iron (BPI) suppliers have been targeting higher prices for January shipment, seeing some stable to firm sentiments in the US and following the weak performance in previous months.
Most offers are at $400/mt FOB, up by $10-15/mt from the previous reference price, and one deal was reported a week ago. Overall production plans for December are reduced, so switching to January shipment offers exporters are going to improve their profitability, especially after the lows seen in October. “Whether they [producers] will succeed, we shall see. I do not expect activity in near future,” a Brazil-based source said.
The new offer level translates to $425/mt CFR or above to the US, but market sources believe that importers are not ready to pay above the previous $410-415/mt CFR for pig iron with 0.15 percent phosphorus content, at least for now.
The SteelOrbis reference prices for ex-Brazil BPI have widened to $385-400/mt FOB with the midpoint at $392.5/mt FOB, up by $5/mt on average over the past week.
