The sentiment in the Brazilian export basic pig iron (BPI) market has remained far from positive. One more deal has been rumored as done to the US at the similar to the previous bookings level, however, the outlook is bearish, taking into account not positive projections in the scrap market.
A contract for 55,000 mt of ex-Brazil BPI with the phosphorus content 0.15 percent was rumored as done on Tuesday at $480/mt FOB, though some sources believe that it was a few dollars lower, while some said that the final price was $482/mt FOB. The price is almost in line with two deals reported at $475-480/mt FOB last week, translating to $505-510/mt CFR New Orleans. Nevertheless, as per checking in the import market in the US, the major destination for ex-Brazil pig iron, the deal could not be finally confirmed.
Offers for ex-Ukraine pig iron have been at higher level compared to Brazilian material, and no deals to the US have been reported so far. Prices for ex-Ukraine BPI have been at $540-545/mt CFR in the US.
“Sentiment is truly worsening and demand fading all over. The US debt ceiling issue puts a lot of pressure and uncertainty to the markets,” a trader told SteelOrbis. The outlook in the pig iron market has been cloudy also due to bearish sentiments in the US scrap market with some sources believing it will fall $40/gt in June.