The negative mood continues in the ex-Brazil basic pig iron (BPI) market this week with the low price level fixed in one deal last week being confirmed in another booking. In particular, a cargo of ex-Brazil BPI with 0.15 percent phosphorus content was sold at $410/mt FOB early this week, according to sources. Last week, another supplier sold at $407-415/mt FOB, as reported.
“The US is going to pull the market down even though it is the rainy season in Brazil,” a trader said. Another source has also said that the total demand in the US is poor, so mills have had to sell some January shipment allocation before the Christmas holidays. A third source has also mentioned that the weak local currency in Brazil has been among the main reasons which enable lower prices to be given.
The CFR price in the latest deal has been assessed at $435-440/mt CFR. And there is talk that US customers are trying to push down to $425/mt CFR, which has not been confirmed by any seller.
The negative mood has been worsened also by emerging ex-India offers. A few sources have got offers at $380/mt FOB from India, but there have been no confirmed deals by the time of publication.
The reference price for import BPI in the US has been at $435-460/mt CFR, stable over the past week, including materials with both high and low phosphorus content.