Despite expectations, a new deal for 30,000-35,000 mt of ex-Brazil basic pig iron (BPI) with 0.15 percent phosphorus content was signed at $400/mt FOB late last week to one of the leading mills in the US. According to sources, the same producer sold in fact two cargoes, but the total tonnage has not been disclosed by the time of publication, while both deals are for November shipment. This price is lower than the previous deals at $408-413/mt FOB signed a few weeks back, but it is above the expectations of most market sources, given the negative mood among the US importers.
“It is not a big fall. Most bids are much lower than that,” an international trader said. Another market source pointed out that the buyer needed to replenish stocks and that the negotiations started at $410/mt FOB, but in the next round of purchases the US mills will ask and get below $400/mt FOB.
The SteelOrbis reference price for PH 0.15 percent BPI has settled at $395-405/mt FOB since Friday, down by $5/mt from the previous level early last week. Offers for ex-Brazil BPI with 0.10 percent phosphorus have been reported at $410-415/mt FOB, with no deals reported.
In addition, there has been information about the availability of ex-Ukraine high quality BPI at $410-415/mt FOB Polish port.
The import BPI reference price in the US has been corrected to $425-440/mt CFR, versus $430-445/mt CFR early last week.