Brazilian basic pig iron (BPI) suppliers have been struggling to sell in major outlets with no new bookings reported to the US. The only deal was done at a small discount and to the alternative destination – Europe. Market sources believe that the long-awaited rebound has been postponed again.
A contract for Brazilian BPI with 0.15 percent of phosphorus content was disclosed as signed last week at around $380/mt FOB with no financial expenses. Though the price could not be finally confirmed by the time of publication and some market sources believe it could be even slightly less, the rumour has been widely spread in the market. The trade destination is Europe and local market sources have been reporting CFR price at $416/mt CFR or slightly higher. “There is no business with the US, so mills are trying to survive,” a Brazilian source said.
However, not all producers from Brazil agree to provide even small discounts. One of producers has rejected a bid at $385/mt FOB, including usual $4/mt of financing. Most of deals from Brazil to the US were done at $383-385/mt FOB over two weeks ago, but mills have been in no rush, trying to push prices down further, even though expectations for November in the local scrap market tare rather stable.
As for the expectations, market sources believe that prices may rebound for January shipment only, so there is not much optimism for the near future. “I believe this is the bottom... And now we are talking about December shipment for next bookings, when rains are expected to have the usual impact on physical charcoal supply and prices,” a Brazil-based source said. Another Brazilian source said that he expects an increase by $10/mt but only for January shipment, when production cuts will be underway.
The SteelOrbis reference price for import BPI in the US has remained stable this week at $410-425/mt CFR.
