Two ex-Brazil basic pig iron (BPI) deals for 50,000-55,000 mt each are rumored to have been done for September-October shipment at $510-515/mt CFR or equivalent to $480/mt FOB, which is up from the previous trade reported at $470-475/mt FOB. This has been confirmed by two sources, though some market sources said it is too early to say that US buyers are fully ready to accept an increase. “I still do see $505/mt CFR as the highest possible,” a trader commented.
Brazilian producers have increased their offers to $480-485/mt FOB, seeing the news about disruptions of shipments from Ukrainian Black Sea ports after the increased attacks on vessels by Russia. At the moment, major shipowners are avoiding taking goods from major ports in the Odesa region, with pig iron and iron ore exports impacted. On July 17, a drone attack targeted a vessel carrying Ferrexpo's iron ore. After that, a vessel with grain sunk near Odesa port. This has seriously impacted shipments of iron ore and pig iron, which have been cancelled or re-routed if possible. Moreover, major iron ore mining complex, Southern Mining, temporarily suspended operations on July 28 as a result of disrupted maritime logistics.
“We hear that all Ukrainian shipments will be compromised. That is why US buyers may be more active in purchases [from Brazil],” a Brazil-based source said.
There are no new deals heard for Indian BPI lately, with the latest price level heard at $480/mt CFR, slightly above the previous assessment at $470-475/mt CFR.
The SteelOrbis reference price for import BPI in the US has settled at $505-515/mt CFR, increasing by $7.5/mt on average from the previous week.
