Prices for ex-Brazil basic pig iron (BPI) has posted another gradual increase in the latest sales to the US, but market sources believe the price levels in question may constitute a ceiling for now, considering the rather stable expectations for the scrap segment.
At least one deal for 50,000 mt of ex-Brazil BPI with 0.15 percent phosphorus content is reported to have been done to the US at $440-441/mt FOB, which translates to slightly below the $470/mt CFR mark for the US market. Apart from this deal, another deal at $440-445/mt FOB has been widely discussed in the market, but it could not be confirmed by the time of publication. “I see that most buyers still see the tradable level at $435/mt FOB, but once someone mentions $440/mt FOB and above, the market starts to talk and the price becomes real, even if trading is limited at this level,” a trader said.
“I would say that $470/mt CFR for the US is already too high, if you look at busheling which is expected to be stable in March,” another trading source said. As a result of the talk of recent deals, the SteelOrbis reference price for ex-Brazil BPI has increased by $5.5/mt on average from last week to $440-441/mt FOB, while the import BPI price in the US has settled at $465-475/mt CFR.
