Prices for ex-Brazil basic pig iron (BPI) have increased further, as confirmed in new deals to the US. Stronger local scrap prices and the confirmed uptrend of steel prices in the US have been supporting BPI suppliers.
A deal for ex-Brazil BPI with 0.15 percent phosphorus has been done at $445/mt FOB this week, in line with the last week’s target price of exporters, but up by $10/mt compared to the previous deals signed a few weeks back. Some sources report that there have been two deal at this level recently. “Scrap prices are increasing all around the world, so pig iron will follow,” a Brazilian source said. Later this week, negotiations have been heard held at $450/mt FOB.
The target price of Brazilian suppliers, offering BPI with 0.15 percent phosphorus content, has been at $460/mt FOB this week, and a further rise is not excluded.
Considering the recent deals, the import BPI price in the US has settled at $470-480/mt CFR, increasing by $5/mt since last week. But the targets of some sellers, from Ukraine in particular, are already at $500/mt CFR, considering busheling in the US has risen by $30/nt and Nucor has announced a further hike in steel prices. Nucor reported its CSP has risen by another $15/nt ($17/mt) to $915/nt ($1,009/mt) this week, up from last week’s $40/nt ($44/mt) increase.
The latest sale for BPI from India has been heard at $420/mt FOB, translating to $460-465/mt CFR, but there has been no confirmation regarding whether the material found a buyer in the US.