Prices for ex-Brazil basic pig iron (BPI) have declined again this week, as confirmed in one deal. However, further cuts are considered to be doubtful by some market sources, given the big declines already seen over the past two weeks and the possibility of lower production in Brazil.
A deal for 50,000 mt has been heard at $410/mt FOB for pig iron with 0.15 percent phosphorus content, down from last week's sale rumored at $415-420/mt FOB. Though this sale has not been confirmed by the exporter, a number of Brazilian sources agree that the deal was in fact done and that this is the new market level. The price translates to $435/mt CFR to the US.
No other deals have been reported so far with offers from Asia absent and Ukrainian mills also cautious, waiting for the trend to settle. “I see this is as the bottom as a $20/mt drop is quite big,” a local source said.
The SteelOrbis reference price for import BPI in the US has settled at $435-455/mt CFR, down by $7.5/mt on average over the past week. The higher end of the range reflects the tradable level for low-phosphorus pig iron, though the offers for this grade have been limited.