Despite their struggle to keep prices from falling, Brazilian basic pig iron (BPI) suppliers have been forced to step back this week. Although no significant surge in BPI export activity from India was expected due to poor demand, the removal of export duty in India has exerted pressure on the positions of Brazilian BPI sellers, apart from the low bids from the main US steelmakers. The emerging ex-India BPI offers, which by the end of the current week have fallen significantly, have justified the concerns of some market players. Specifically, by Friday, November 25, a few traders have informed SteelOrbis of the availability of ex-India BPI offers at $410-420/mt FOB, which “has made the pig iron market in Brazil totally dead,” according to an international trader. It is noteworthy that Indian mills have denied such information, considering the mentioned levels as absolutely unworkable. “Traders around the world want to buy at these numbers. However, no one is offering from India at those levels,” a representative of a major Indian BPI mill stated. One way or another, by the end of the current week, one Brazilian BPI seller has reduced its offers for BPI with 0.15 phosphorus content to $420/mt FOB, for January shipment. This is a $80/mt decline compared to offers voiced at the end of October. Meanwhile, another Brazilian BPI supplier has continued to target sales to the US market at $500/mt CFR, for January shipment, which is around $470/mt FOB, considering the freight rate. Given the firm bids from major US steelmakers at around $425/mt CFR, Brazilian BPI suppliers may be even more flexible in order to secure orders. A deal for ex-Brazil BPI at $450/mt FOB has been heard this week, but with no details by the time of publication. “I am afraid, it will be only a question of time until the Brazilians blink first and accept levels voiced from the US market,” an international trader stated.
As SteelOrbis reported earlier, last week one ex-Ukraine BPI cargo for prompt shipment was traded at $525-530/mt CFR Port of Toledo. As the route of ship lies via the St. Lawarence River and the Great Lakes, it should be unloaded not later than the fourth week of December. Otherwise, the cost of transportation would rise by $40-50/mt, as the cargo would have to be barged up the Mississippi River to the Midwest. Meanwhile, another ex-Ukraine BPI cargo was done at $510/mt CFR Port of New Orleans. The prices in both sales are considered overvalued by market players and not relevant any more.