New deals for ex-Brazil basic pig iron (BPI) have been reported at higher prices with the major reason for continued increase being still firm demand for the raw material amid rises in finished steel prices.
According to sources familiar with the transaction, a deal for BPI with 0.15 percent of phosphorus content has been signed at $505/mt CFR to the US for June shipment. This translates to $475/mt FOB, which is up from the highest level seen at $470/mt FOB last week.
The sale reflects steady demand from U.S. buyers, who are trying to increase sourcing of high-quality raw materials. The Pig iron price increase has followed some gains seen in the local scrap and high HRC tags. The US East Coast shredded scrap docks prices have added 5-10/gt, while the Nucor Consumer Spot Price has reached $1045/nt ($1,152/mt).
In such conditions, Brazilian suppliers have been voicing prices for BPI with 0.10 percent of phosphorus content at $485/mt FOB. “People are flying to Sweden now, more info will come to the market after the IIMA meeting,” a source said. The International Iron Metallics Association (IIMA) Biannual Members' Meeting will be held in Stockholm, Sweden between April 20-22 April.
Another deal for ex-Brazil BPI has been confirmed as done to Italy at $525/mt CFR, which translates to $475/mt on an FOB basis, though some market sources said the FOB price including finance expenses is $480/mt. European sources said that there are active negotiations at $520-525/mt CFR for Brazilian pig iron, but customers ask for a part of higher quality pig iron to be included in the cargo at such prices. In any case, this higher-level sale is confirmed, though “this is today’s price, but it will go down soon. This is a short-term demand,” a Europe-based source said.
Ex-Ukraine BPI tradable price in Europe has been reported at $500/mt CFR, considering higher Carbon Border Adjustment Mechanism (CBAM) adjustments, though some sellers are targeting higher - $510/mt CFR and above.
