Having maintained a bullish stance in offers since the last bookings concluded at the beginning of October, a Brazil-based basic pig iron (BPI) supplier has finally managed to achieve a higher price in a new deal to China.
Accordingly, SteelOrbis has learned of a fresh ex-Brazil 60,000 mt BPI sale to China at $575/mt CFR, for January shipment, done on Friday last week. The FOB price is estimated at $500/mt FOB, including finance costs and costs for freight at around $70/mt. This is a $15/mt increase compared to the levels fixed in the previous bookings for ex-Brazil BPI.
Overall, global suppliers continue to seek higher prices in the upcoming deals. “The valid offers for now are at $585/mt CFR to China,” a Brazil-based supplier stated after the abovementioned deal. Meanwhile, most CIS-based BPI suppliers have withdrawn their offers, preferring to evaluate the current market developments. Previously, the most recent offers were heard for ex-Ukraine BPI at $520/mt FOB Black Sea, which was subsequently considered by the supplier as undervalued amid the rapid pace of the price increase in the coal and scrap segments. “I have not heard any specific offers since last week, but it is not excluded that they [CIS-based suppliers] may target even $560-570/mt FOB levels,” an international trader commented.