Prices for ex-Brazil basic pig iron (BPI) have settled at a new low, set by the latest sale to the US.
A contract for 50,000 mt has been reported at $500-505/mt CFR for late August shipment to the US, which translates to around $470-475/mt FOB from South Brazil. This is down from the previous targeted level by Brazilian suppliers at $520-530/mt CFR.
Some market sources assess freight at a slightly higher level, which would put the tradable value at $465/mt FOB. However, most sources agree that as more business is done, the market may settle at $470/mt FOB and this will become the starting point for other suppliers' negotiations next week. “This is for August shipment. There may still be some availability from Brazil for August shipment, but most offers now will be for September shipment,” a Brazilian source said.
In light of Brazil having previously sold to Mexico at $520/mt CFR, the primary reason for the lower price level settled in the US is previous active selling of lower-priced Indian pig iron. For Indian material, there have been no new confirmed deals after sales at $480-485/mt CFR. But some market sources agree that Indian producers may be still interested in exports in the coming month and $420/mt FOB can be achievable, which may translate to around $470/mt CFR to the US.
The SteelOrbis reference price for ex-Brazil BPI has been settled at $470-475/mt FOB, while import BPI price in the US has been at $500-505/mt CFR versus $510-520/mt CFR last week.
