Brazilian basic pig iron exporters are still targeting high prices, expecting lower allocations from late December due to production cuts. But trading activity has remained limited with only one deal reported to have been done late last week.
A contract for ex-Brazil BPI with 0.15 percent phosphorus is heard to have been concluded at $395/mt FOB, up from the previous booking reported by SteelOrbis at $385-390/mt FOB. The CFR price in this deal has been voiced by market sources at $422.5/mt CFR, with shipment to a US buyer. No other deals have been rumored in the market this week and some sources said that the tradable level should still be close to $420/mt CFR, though most exporters have remained optimistic. “I believe in the strength of the market and a next level of $400/mt FOB,” a Brazilian source said. “Several mills will cut production after Christmas,” he added.
The outlook for December US scrap pricing has remained sideways to potentially higher early this week before the Thanksgiving Day holiday in the US. A few traders said that, with slow demand, the pig iron market may be stable and inactive for another week.
The SteelOrbis reference price for ex-Brazil BPI has increased by $2.5/mt on average over the past week to $390-400/mt FOB, while the import price in the US has settled at $420-430/mt CFR, inching up also by $2.5/mt on average.