Prices for Brazilian basic pig iron (BPI) have been stable lately after the previous rises seen during the most part of March and trading has still been rather limited. Since expectations for local scrap prices in the US for April are from stable to soft and the previous uptrend in the US has been assessed as having been too sharp, market participants said they believe pig iron prices should remain stable or even go down slightly in the near future.
The SteelOrbis reference price for ex-Brazil BPI with 0.15 percent phosphorus content stands at $445-450/mt FOB. Though most offers are at $450/mt FOB or above, there have been no fresh deals after the previous ones at $445/mt FOB, sources have said. “No one knows where the market will go with all the talk about the US logistical threat and scrap prices. We just need to wait,” a Brazilian source said.
The latest deal for ex-Brazil low-phosphorus BPI was done at $485/mt CFR to the US last week, translating to $465/mt FOB North Brazil.
According to a number of market sources, Brazilian pig iron exporters are currently aiming to hold prices stable as the April scrap pricing trend in the US seems to be one of soft sideways to as much as $40/gt less compared to March.
The target price of ex-Ukraine BPI in the US is not below $480/mt CFR. “Ukrainian producers are offering to both US and Europe and trying to settle more or less equal prices for these markets, but need to see the future sales,” a trading market source said.
The SteelOrbis reference price for import BPI has settled at $475-485/mt CFR.