The bullish stance of global scrap suppliers has encouraged Brazilian basic pig iron (BPI) exporters to follow the same trend more decisively. Accordingly, the latest offers for ex-Brazil BPI, with shipment in March at the earliest, have been heard at $500/mt CFR and above, around $25/mt higher compared to the previous levels. Furthermore, today, January 9, information about a successful deal done to the US last Friday has surfaced in the market, though certain details had yet to be confirmed by the time of publication. Specifically, while a Brazilian BPI supplier claimed that the deal was concluded at $500/mt CFR Port of New Orleans, other market insiders estimated the deal price to the end-user at not above $490-495/mt CFR Port of New Orleans, including a freight rate at $25/mt and financing costs. Meanwhile, the FOB price has been specified at $465/mt, up $15/mt compared to the price targeted by a supplier in the middle of December. The deal in question was signed for 50,000 mt of BPI with 0.15 phosphorus content, with shipment from southern ports of Brazil.
“Prices seem to be firming up and we expect that to continue with the trends in scrap and steel prices as well,” a major US-based BPI buyer stated with regard to the future developments in the segment.