The long-term downtrend in ex-Brazil basic pig iron (BPI) market has ended for now, even despite rumors of lower prices available for alternative destinations – not the US. A stable trend and lack of further declines have been proved by another deal signed at a price level, close to the previous contract reported in early June.
The latest contract for a sizable lot of ex-Brazil BPI with 0.15 percent of phosphorus content has been signed at $401/mt FOB, market sources said. The previous transaction was done at $397-400/mt FOB, as SteeOrbis reported earlier. Brazilian suppliers have been resisting further downtrend and planning production cuts and only few of them are still assessing to offer $400-405/mt FOB, while a part of mills have decided to stay out of the market. “After prices hit $400/mt FOB, the producers seem to be resisting. We have to wait until the final duties [in the US] are known in about two weeks,” a trader said.
“There was an interview with the Sete Lagoas metalworkers' union president saying that he foresees unemployment in the industry will become a serious problem if market prices don't recover soon,” a Brazil-based source told SteelOrbis on Friday.
The SteelOrbis reference price for import BPI in the US has remained stable at $425-445/mt CFR.
At the same time, there have been talks in the market that ex-Brazil BPI may be offered at $410/mt CFR to Turkey, which translates to far below $400/mt FOB. Though traders and some buyers in Turkey have been hearing this news, most exporters and large international traders doubt that this price can be found at any of the producers at the moment. “There have been rumors about $410/mt CFR price levels. But I think it is not enough to be feasible for the Turkish market, it should be below $400/mt CFR from my point of view,” a Turkey-based source said. Offer prices for some Asian origin BPI have been heard at $365-370/mt FOB, which is closer to abovementioned level of $410/mt CFR Turkey.