Brazilian basic pig iron (BPI) suppliers have kept their prices stable at high levels as there has been some acceptance of their prices in the US market. Although overall sentiments are not so bullish and some market sources believe the current levels are too high, there are not so many offers overall in the US market.
A deal for ex-Brazil BPI with 0.15 percent phosphorus content was signed at $530/mt CFR last week, a number of market sources have confirmed. This translates to $500/mt FOB, in line with the targets of exporters seen over the past two weeks. “Sellers wanted this level and it [a deal] is done, but I don’t think that there will be a lot of demand at this level,” a Brazilian source said. The lowest level seen in offers is $495/mt FOB. But some US buyers still see the tradable level as being not above $520-525/mt CFR.
Compared to last week, the ex-Brazil BPI reference price has improved from $485-495/mt FOB to $495-500/mt FOB, but it is almost stable compared to two weeks ago. A week earlier the market price was hardly impacted by news that a lot of Indian BPI was sold to the US. However, with at least one new deal confirmed at the previous higher level, the market has now settled.
There have been some indications for Indian BPI at $500-510/mt CFR, down from the previous deal done at $490/mt CFR two weeks ago.
There has been a lack of offers of low-phosphorus BPI. Market sources said that Brazilian suppliers of this grade are targeting $505-510/mt FOB, which translates to $530-535/mt CFR. The freight from northern Brazil is $25/mt, while from southern Brazil (from where high-phosphorus BPI comes) it is at $30/mt.
The reference price for import BPI in the US (with low and high phosphorus content) is at $525-535/mt CFR.
