Prices for ex-Brazil basic pig iron (BPI) have remained relatively stable in the last deal done to the US. However, Brazilian suppliers are expecting some recovery in prices in the next round, given high costs and the expected stable-to-slight-increase trend in the US local scrap market, SteelOrbis has learned from the market on August 4.
A deal for undisclosed volume for ex-Brazil high-phosphorus BPI has been signed at $405/mt FOB this week, the fourth deal signed to the US over the past few weeks. Previous deals were done at $404/mt FOB, $400/mt FOB and $406/mt FOB, with the price depends on volume, shipments and finance expenses. The new deal translates to $430-435/mt CFR New Orleans, so in line with the previous bookings. “Brazil is more or less unchanged, and the market will be quiet in the next couple of weeks,” a trader said.
Nevertheless, there is talk that some Brazilian exporters are eager to offer at $405-415/mt FOB now and will aim to increase deal prices in the next round of sales. “They should try and push prices up. Costs are above the current levels,” an international trader said. Another market source also confirmed the attempts of Brazilian mills to hike prices “because of limited inflow into the US scrap yards”.
However, until now it is still unclear if sellers will succeed in this and some market sources still believe prices may go down below $400/mt FOB if global conditions remain poor and if flat steel prices in the US keep falling.