Though there were some cautious expectations for an improvement in basic pig iron (BPI) prices in the US towards the end of the month, these expectations have failed to be realized so far. As a result, Brazilian export prices have remained stable and trading has been silent.
Offers for Brazilian BPI with 0.15 percent phosphorus have remained at $435-440/mt FOB. “I would say the trading level is $435/mt FOB, if there are buyers,” a trader said. Though market sources have been waiting for some more activity in the market after the IIMA meeting held in Houston this week, this has not happened. “Availability from Brazil is for November-December shipment, i.e., a relatively short leeway,” a Brazilian source said, commenting on the pressure on BPI prices. The reference price for ex-Brazil BPI with 0.10 percent phosphorus has also been stable, at $445-450/mt FOB.
Slightly positive expectations for the local scrap market in the US for October have failed to support BPI. “I am seeing the workable level still at $470/mt CFR maximum,” a trading source said. Some market sources report buyers’ price ideas at $460/mt CFR for BPI with 0.15 percent phosphorus.