By the middle of the current week, one more ex-Brazil basic pig iron (BPI) transaction has been disclosed to the market. Like the deal released by SteelOrbis at the end of the past week, the deal in question has been done to the US, at $450/mt FOB. The cargo of BPI with 0.15 phosphorus content is destined to be shipped in October, with freight being estimated at $35/mt. “Pig iron prices have bottomed at $485/mt CFR Port of New Orleans and are expected to be moving up soon,” a major US distributor stated, commenting on the prospects of the market. “Production has lowered dramatically in Brazil. For instance, in our hands just one cargo is left for November shipment. Besides that, the rainy season is coming, which may impact production even more,” a Brazilian supplier said, echoing the bullish outlook.
Nevertheless, there are a few traders who remain completely discouraged by the current developments in the global BPI market. “The market is insecure now. Even for HBI, there is no real action in Europe,” a major international trader stated, adding that lately he heard of bids from the biggest steel mill in the US at $450/mt CFR. “None of the main buyers wants to pay $450/mt CFR now,” stated another international trader.
Furthermore, SteelOrbis has heard offers for ex-Brazil BPI with 0.10 phosphorus content at $475/mt FOB to Saudi Arabia. However, the trader has failed to entice the buying interest of the end-user. “The customer bought so-called ex-Kazakhstan material at $520/mt CFR,” the trader commented. Meanwhile, the actual origin of the material in question may be Russian, though left undisclosed due to sanctions-related risks.