Offers for Brazilian basic pig iron (BPI) have been on the higher side since last week amid lower supply due to the rainy weather in Brazil. However, US buyers have still been refusing to accept any hikes, at least for now.
Suppliers from southern Brazil have been offering BPI with 0.15 percent phosphorus at $405-410/mt FOB, versus $400-405/mt FOB last week. “It’s raining a lot and costs are increasing [due to more expensive charcoal], so it makes sense to correct offers up,” a Brazilian source said. However, no new deals have been reported after the one at $400/mt FOB earlier in January. A few sources reported that some sellers may still agree to sell at $400/mt FOB, but not lower. The reference price for ex-Brazil BPI with 0.15 percent phosphorus remains at $400-405/mt FOB until new deals are done.
Import BPI quotations in the US for this grade have been stable at $430/mt CFR. The latest deal for low-phosphorus BPI, which was done at $445/mt CFR as reported last week, has been assessed as being on the high side.