New deals for ex-Brazil basic pig iron (BPI) signal that the market has stabilized somewhat and the previous bullish mood of sellers will not result in contracts, at least in the near future.
One fresh deal for 50,000 mt of ex-Brazil BPI with 0.15 percent phosphorus content has been widely discussed as having been done at $450/mt FOB this week, similar to a deal for the same volume in the first half of the month. One market source said that the final price was $445/mt FOB, but this has failed to be confirmed by the time of publication. “I see the market as stable and expect this to continue,” a seller said. In addition, another Brazilian BPI producer has claimed to have sold 35,000 mt to a trader at $450/mt FOB for March shipment.
In the last two weeks, offers for this grade BPI were at $460/mt FOB and mills were bullish due to higher costs during the rainy season. But, for now, any level above $450/mt FOB “would be unlikely,” a trader said. Prices for ex-Brazil BPI with 0.10 percent phosphorus content have been heard at $470/mt FOB, which is too high and no deals have been reported.
The developments in the local US scrap market have affected the BPI market. Scrap prices in the US Northeast have settled at mostly sideways this month, while busheling prices in the Ohio Valley have lost $30/gt, translating to $483-493/mt in January. Import BPI prices in the US have remained at $480-500/mt CFR so far, with deals mainly at the lower end of the range for BPI with 0.15 percent phosphorous content.