Prices for ex-Brazil basic pig iron (BPI) have been relatively stable over the past week even though there are some expectations for a slight increase in local US scrap prices in July.
The latest deal for ex-Brazil BPI with 0.15 percent phosphorus content was signed at $403/mt FOB, which is in line with the previous reference price at $400-405/mt FOB. This price translates to around $430/mt on CFR basis. And though some sources have been claiming one more deal at $440/mt CFR, this has been denied by most Brazilian sources, who are saying that the pig iron market has failed to follow an upward trend, at least for now.
In the US, it is expected that local scrap may move up by around $5-10/gt in July after stability in June.
“We have received a lot of inquiries from Europe, but the buyers are waiting for lower prices,” a Brazilian source said. As SteelOrbis reported earlier, the last ex-Ukraine pig iron deal was at $435/mt CFR and buyers have been targeting lower now - $410-420/mt CFR at best, which is too low for Brazilian exporters.
The SteelOrbis reference price for import BPI (which includes both low- and high-phosphorus materials) has remained stable at $430-450/mt CFR.