Prices for ex-Brazil basic pig iron (BPI) have finally increased, which has already been confirmed in one deal. A cargo of ex-Brazil BPI with 0.15 percent of phosphorus content has been sold to the US at $415/mt FOB with financing expenses included, while the previous contract has been rumored at $405/mt FOB. This is a visible hike compared to deals done in January at $390-398/mt FOB. Market sources said that new offers for this grade are at $420/mt FOB and above.
The major reason for the recent price hike has been an uptrend seen in the scrap and steel markets in the US, while the previous BPI production cuts failed to provide much support earlier. “Little by little, price is going up. However, Brazilian pig iron may be seriously impacted if the US cancels the sanctions against Russia,” a source said.
The reference price for import BPI in the US has been increased to $435-450/mt CFR versus $420-444/mt CFR last week.