Prices for ex-Brazil basic pig iron (BPI) have continued to gain this week mainly amid firm demand and some constraints seen in supply. Though the market has been bullish over the past month, it seems that prices may stabilize at this point, at least for some time, market sources believe.
A deal for sizable tonnage of Brazilian BPI with 0.15 percent of phosphorus content has been done at $481.5-483/mt FOB, according to different sources, versus previous bookings at $475/mt FOB. One source from Brazil said that the price included financing and the net deal price for the seller was close to $478-479/mt FOB. As a result, the SteelOrbis reference price for Brazilian BPI with 0.15 percent of phosphorus has settled at $478-483/mt FOB, adding $5.5/mt from last week.
The booking was made by a major US mill, according to most market sources, as the US company has been looking to secure material for June and July. A new sale has corresponded to $510-515/mt CFR New Orleans versus a previous contract price spread at $505/mt CFR a week ago.
There has been limited activity for low-phosphorus BPI from Brazil amid a lack of offers, which have been estimated at around $490/mt FOB in the current conditions.
Moreover, “The rainy season is now over, but charcoal output and charcoal transportation logistics must take around 4 or 5 weeks to recover in full. Meanwhile, a few vessels sailed from Brazil partially empty (thus resulting in deadfreight) as many producers have not been able to perform on time,” a source from Brazil commented.
