Brazilian basic pig iron (BPI) exporters are trying to reverse the downtrend of prices, citing limited supply and saying that prices are already too low, unusually for the rainy season.
A deal for BPI with 0.10 percent phosphorus content was done at $445/mt CFR to the US late last week, $5/mt higher than the tradable level for this grade material earlier in January. Moreover, new offers for low-phosphorus BPI are at $450/mt CFR, which translates to around $430/mt on FOB basis. “With our heavy rains and Metinvest’s coal mine blocked, I think the last deal to Nucor [done at near $400/mt FOB for BPI with 0.15 percent phosphorus] was the bottom,” a Brazilian source said. As it reported early this week by Ukrainian steel mill Metinvest, its operations at Pokrovsk Coal have been suspended due to the evolving frontline war conditions, power supply shortages and the deteriorating security situation.
Also, as another Brazilian source stated, “Other factor that may be behind this approach is the reduction in Brazilian pig iron output since December in the wake of constant rains in the state of Minas Gerais, and in most of Brazil.”
There have been no new deals reported for BPI with 0.15 percent phosphorus and some suppliers are targeting $405/mt FOB at the moment, up by $5/mt over the past week.
The SteelOrbis reference price for import BPI in the US has settled at $430-445/mt CFR, moving up by $5/mt over the past week.